Indian automaker Mahindra & Mahindra reported a better-than-expected 34% rise in quarterly profit on Thursday, driven by robust demand for high-margin sports utility vehicles and tractors.
The Scorpio SUV maker’s profit rose to 34.50 billion rupees ($394.58 million) in the April-June quarter from 26.13 billion rupees a year ago. Analysts expected a profit of 30.98 billion rupees, per data compiled by LSEG.
Robust rural demand, a steady tractor market, a strong SUV offering and deep distribution in semi-urban as well as rural areas have helped Mahindra sustain momentum even as overall industry growth slows.
India’s domestic car sales have lost steam, growing 8% in fiscal year 2024 and 2% in fiscal 2025 after double-digit gains in the previous two years. Automakers expect sales growth to slow further to 1%–2% in the current fiscal year, reflecting a broader slowdown.
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However, Mahindra has been an outlier. India’s second-largest carmaker said its SUV sales surged 22% in the quarter, driven by strong demand for new models and electric vehicles, while tractor and farm equipment sales rose 10%.
Together, they pushed overall revenue up 26% to 340.83 billion rupees.
Its shares ended flat before the earnings report.
Earlier in the day, smaller rival Hyundai Motor India topped profit estimates on the back of a jump in exports.
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