Mahindra & Mahindra's Group CEO attributed the 18% Q2 profit surge to strong performance across all businesses—led by significant growth in Farm, Finance, and Tech M—and predicted that this positive momentum, supported by a favorable economic outlook and GST-led sentiment change, will continue.
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0:10But are you happy with the quarter 2 performance?
1:06So I'm presuming that the momentum for all the businesses continues into quarter 3, quarter 4, let's say the next 12 months?
1:56So therefore, there is no holding back on the growth guidance formal or informal that you might give, right?
2:52I believe your PBT margins as well, 19.7% if I'm not wrong, this is the record that you've done, right?
3:19But is this the new structural shift to a higher baseline?
4:07But difficult to call that this is a baseline number now, like think of 18% or 18.5% as a baseline and you'll probably do above?
4:48You believe it is continuing to November and therefore the headline numbers on volumes, the ability to crank up operational metrics because of volume growth, will start showing in quarter 3?
5:31Would you have to continue doing that and therefore does that have an impact there, if not a problem?
7:33Could that have a pressure on your pricing and thereby the passenger vehicle division margins if you will?
Mahindra and Mahindra Q2 profit surged 18%, beat estimates. What led to the positive quarter? We spoke to Anish Shah, group CEO at Mahindra and Mahindra. Hear him out.
Not many companies can say they were marred by the GST transition and deliver 22% on the base you did, right? So you think of what could have happened if there was no GST transition. But are you happy with the quarter 2 performance?
I am delighted with the performance, largely because all our companies have contributed in a significant way. So from a profit standpoint at the consolidated level, we're up 28%. Farm is up 54%. Mahindra Finance 45%. TechM 35% on an operational basis. Growth gems 22%, though we don't look at profits as much because we're investing for the future and we will see profits grow significantly in the future. And auto up 14%, which is an impact in the short term on the GST transition, but that's made up in October. Overall, we see all our businesses literally firing on all cylinders.
The economy overall is in a very good place. So we see the GST change being very positive for the economy because it's created a sentiment change. The fundamentals were there and that sentiment change has helped, and that's what we've seen through the festive season. We see that momentum continuing post festive season as well. Obviously it can't be at the same level as festive, but momentum here is much higher than what we usually see as a drop off from festive in past years. Whether that continues through quarter 4, too early to say, but on balance we see the economy on a good track.
Okay. Now just diving into two or three segments. Firstly, the farm equipment, for tractors. Did I get that right that you believe the industry will grow much higher? You are expanding market share through the last four quarters as well. I mean, what could have happened in quarter 2, a slight dip here and there maybe, but broadly you believe that you might maintain or improve market share in an industry wherein you believe from 5-6% that growth could be double digit? So therefore, there is no holding back on the growth guidance formal or informal that you might give, right?
So we have given that guidance of low double digit growth for the industry. Yes. We have grown market share in this second quarter as well by 50 basis points. In the month of October it was just slightly lower than what we would have liked, but on balance the farm business has done just a fantastic job in execution, and that is driving the growth that we see in profits.
And it's not just the topline growth or the volume growth in the farm equipment, right? I believe your PBT margins as well, 19.7% if I'm not wrong, this is the record that you've done, right?
That is correct. PBT margins have grown and grown consistently over the past many quarters. So that combined is really a reflection of strong execution. That combined with the gain in market share and the volume growth for the industry has helped deliver some very strong results.
So if you moved from let's say 15 to 17 range, if I can call that, to now 19, 18 to 20, whatever range you may want to give, I would love to know the range. But is this the new structural shift to a higher baseline?
There are various factors that go into it. Commodity prices is a key part of that. So if that changes, then that equation might change as well. What we have been able to show is through cycles we've been able to maintain a stability in margins. We've been able to have pricing largely reflect whatever pressures we see. But at times when commodity prices go up much higher, then that creates a much greater pressure not just for the business but for customers as well.
Shah, A. (2025, November 5). M&M Group CEO Anish Shah Speaks Out On Profit Boost In Q2 & The GST Impact I M&M Share News [Interview transcript]. NDTV Profit. CEOInterviews.AI. https://ceointerviews.ai/interview/1042724/
MLA
Anish Shah. "M&M Group CEO Anish Shah Speaks Out On Profit Boost In Q2 & The GST Impact I M&M Share News." NDTV Profit, 5 Nov. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1042724/.
BibTeX
@misc{shah2025_1042724,
author = {Anish Shah},
title = {M\&M Group CEO Anish Shah Speaks Out On Profit Boost In Q2 \& The GST Impact I M\&M Share News},
howpublished = {Interview transcript, NDTV Profit. CEOInterviews.AI},
year = {2025},
month = {nov},
url = {https://ceointerviews.ai/interview/1042724/},
note = {Speaker-attributed transcript with timestamps}
}
