Mahindra & Mahindra Shares Surge Nearly 5% Post Q4 FY25 Results: Should You Invest 

Now?

Pune, May 6, 2025 — Mahindra & Mahindra Ltd. (M&M), a leading Indian automotive and farm equipment manufacturer, reported robust financial results for the fourth quarter of fiscal year 2025, leading to a nearly 5% surge in its share price. The company's strong performance in both automotive and farm equipment segments has caught the attention of investors and analysts alike.(The Times of India)

Financial Highlights

In Q4 FY25, M&M reported a standalone net profit of ₹2,437.14 crore, marking a 21.85% increase from ₹2,000.07 crore in the same quarter of the previous year. Revenue from operations rose by 24.5% year-on-year to ₹31,353.40 crore. (mint)

The company's total vehicle sales during the quarter increased by 18% to 2,53,028 units, up from 2,15,280 units in Q4 FY24. Tractor sales also saw a significant rise of 23%, reaching 87,138 units. (mint, The Economic Times)

Dividend Announcement

Reflecting its strong financial performance, M&M's board of directors declared a dividend of ₹25.3 per share, representing a 506% payout on the face value of ₹5 per share. (Business & Finance News)

Market Reaction

Following the announcement of the Q4 results, M&M's share price climbed nearly 5% in intraday trading on May 6, reaching an intraday high of ₹3,159. This surge brought the stock close to its 52-week high of ₹3,276. (mint, Value Research Online)

Segment Performance

Automotive Segment

The automotive division, which accounts for approximately three-quarters of M&M's total revenue, reported a 25% increase in revenue to ₹24,980 crore. This growth was driven by strong demand for new SUV models, including the XUV 3X0 and the five-door Thar. (Reuters)

Farm Equipment Segment

The farm equipment segment also performed well, with revenue growing by 23% and pre-tax profit increasing by 51%. Higher farm incomes contributed to the increased demand for tractors. (Reuters)

Analyst Perspectives

Analysts have responded positively to M&M's Q4 performance. The company's strong growth in both automotive and farm equipment segments, along with its commitment to shareholder returns through dividends, positions it favorably in the market.

However, some caution that the stock's recent surge has brought it close to its 52-week high, suggesting that investors should monitor the stock's performance and market conditions before making investment decisions. (Value Research Online)

Mahindra & Mahindra's impressive Q4 FY25 results underscore its strong position in the automotive and farm equipment sectors. The company's robust financial performance, coupled with its commitment to shareholder returns, makes it an attractive option for investors. However, given the recent surge in its share price, potential investors should conduct thorough research and consider market conditions before investing.