Nifty Auto Surges Over 1.5% After M&M Reports 7% Surge In Q1 Net Profit

Ahead of Hyundai Motor India's quarter ended June results and after Mahindra and Mahindra (M&M) posted solid Q1 numbers, Nifty Auto surged 1.78% in trade on Thursday, July 30, to hit the 28,321.60 mark. 

M&M Q1 Results

Mahindra & Mahindra posted higher quarterly profit on July 30 as strong demand for its high-margin sport-utility vehicles helped soften the impact from the Middle East war.

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The company behind popular SUV models such as of the Scorpio and Thar SUVs posted a 7% increase in standalone profit after tax at Rs 3,685 crore for the quarter ended June 30 as compared to net profit of Rs 3,450 crore in the year-ago period. 

This comes in after the company raised the prices of both SUVs and commercial vehicles in April, alongside Tata Motors PV and Hyundai Motor India to soften the blow from surging input costs.  The surge in automotive prices didn't led to a fall in demand. 

The company posted a 23% increase in quarterly revenue at Rs 41,920 crore.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd. said, “Auto and Tractor business demonstrated strong resilience in Q1 F27. We have achieved a QoQ increase of 50 bps in SUV revenue market share and 150 bps in LCV (< 3.5T) volume market share. XEV 9S emerged as highest selling EV in India by Volume."

"Our Tractors business gained 280 bps QoQ to reach 44.9% market share in Q1 F27. Auto business PBIT Margin excluding eSUV contract manufacturing is 8.3% and our Core Tractor PBIT margin is 19.2% despite commodity inflation,” he said. 

The shares of M&M ended 1.92% higher at Rs 3,283.70 apiece on Thursday's trading session. 

Notably, M&M saw a 23% jump in automotive volumes during the reporting quarter to 304,421 units while tractor volumes rose 18% to 158,041 units. Utility vehicle sales stood at 175,000 during the quarter, up 15% year on year. 

M&M is expanding production capacity for EV and non-EV models. Its internal combustion engine-powered SUVs will see an addition to 10,000 units per month by the end of FY27 to 70,000 per month compared to 60,000 units per month planned by the end of September, 2026. 

This is planned for supporting new launches in FY28.For electric vehicles, M&M’s capacity will rise to 12,000 units per month by the end of FY27, as compared to 8,000 units per month planned by the end of September, 2026.

The total increase in capacity for the passenger vehicle segment by M&M is 21% to 82,000 units per month.