Mahindra & Mahindra Ltd Management Discussions

	Domestic Industry Volume			YoY Growth
Industry Segment	FY24	FY25	FY26	FY24	FY25	FY26
Passenger Cars	15,48,947	13,53,287	13,78,771	-11.4%	-12.6%	1.9%
Utility Vehicles	25,20,691	27,97,229	31,05,025	25.8%	11.0%	11.0%
MPV (Vans)	1,49,112	1,51,332	1,59,643	7.3%	1.5%	5.5%
Passenger Vehicles	42,18,750	43,01,848	46,43,439	8.4%	2.0%	7.9%
MHCV	3,74,274	3,74,798	4,22,998	4.2%	0.1%	12.9%
MHCV Passenger	54,030	67,307	67,149	40.7%	24.6%	-0.2%
MHCV Goods	3,20,244	3,07,491	3,55,849	-0.1%	-4.0%	15.7%
ICV Goods (7.5 to 12T)	37,667	40,160	54,639	6.7%	6.6%	36.1%
MCV Goods (12 to 18.5T)	62,705	67,134	76,193	-8.0%	7.1%	13.5%
HCV Goods >18.5T	2,19,872	2,00,197	2,25,017	1.2%	-8.9%	12.4%
LCV	5,94,758	5,83,881	6,56,873	-1.4%	-1.8%	12.5%
LCV Passenger	51,750	54,807	61,597	16.8%	5.9%	12.4%
LCV Goods < 2T GVW	1,76,310	1,55,927	1,62,436	-8.6%	-11.6%	4.2%
LCV Goods 2-3.5T GVW	3,19,114	3,11,725	3,48,965	-3.8%	-2.3%	11.9%
LCV Goods > 3.5T GVW	47,584	61,422	83,875	37.9%	29.1%	36.6%
Total CV	9,69,032	9,58,679	10,79,871	0.7%	-1.1%	12.6%
3W Passenger	5,48,090	6,01,642	6,88,477	51.8%	9.8%	14.4%
3W Goods	1,11,519	1,17,156	1,29,288	14.3%	5.1%	10.4%
3W-e-Rickshaw	31,290	18,474	13,009	17.4%	-41.0%	-29.6%
3W-e-Cart	3,902	4,148	5,457	12.1%	6.3%	31.6%
3W	6,94,801	7,41,420	8,36,231	42.2%	6.7%	12.8%
Scooters	58,39,325	68,53,214	81,17,945	12.5%	17.4%	18.5%
Motorcycles	1,16,53,237	1,22,52,305	1,30,64,789	13.9%	5.1%	6.6%
Mopeds	4,81,803	5,01,813	5,23,240	9.1%	4.2%	4.3%
2W	1,79,74,365	1,96,07,332	2,17,05,974	13.3%	9.1%	10.7%
Quadricycle	725	120	4	0.0%	-83.4%	-96.7%
Total Domestic	2,38,57,673	2,56,09,399	2,82,65,519	12.5%	7.3%	10.4%
Total Domestic (Excl. 2W)	58,83,308	60,02,067	65,59,545	10.1%	2.0%	9.3%

Tractor Industry

From FY09 to FY26, the domestic tractor industry grew at an 8.2% CAGR, driven by improving affordability, adoption of modern farming technologies, favourable monsoons, and sustained Government support. Growth was further supported by increased cultivation of high-value crops, higher Minimum Support Prices (‘MSPs), labour shortages that improved the viability of mechanisation, and strong domestic demand alongside rising agri exports. Looking ahead, the long-term outlook for the Indian tractor industry remains positive.

Tractor Industry in FY26

The Indian tractor industry clocked an annual sale of 11,60,231 units in FY26, an increase of 23.5% as compared to FY25. The industry was supported by timely arrival of the south-west monsoon and healthy reservoir levels which created a positive momentum during the year. Following the GST reduction on tractors implemented in September 2025, the industry witnessed a sharp acceleration in growth. While growth stood at 11.6% from April to August, it further surged to 31.2% during the September to March period.

Favourable weather conditions, strong Government support, increased crop procurement and positive terms of trade for farmers reinforced demand. Government measures to improve farm incomes through various schemes further promoted farm mechanisation, with investments to improve rural infrastructure. Exports of tractors in FY26 improved as compared to FY25. This was due to demand for Indian-made tractors, industry-led growth of markets like Sri Lanka, Nepal and Bangladesh.

This positive trend is expected to continue, signalling sustained growth for the sector.

Your Companys Performance

Automotive Sector

In FY26, your Company secured the No. 1 position in SUV revenue market share in India across both ICE and EV segments.

Among passenger vehicle manufacturers, based on revenue market share, your Company ranked No. 2 in ICE and No. 1 in EV. (Source: JATO)

The Company also retained its No. 1 position in SUV brand power during the year under review. Additionally, it sustained its leadership in the LCV (<3.5T) segment by volume for over 12 consecutive years.

Your Companys share in the SUV segment of the Indian auto industry stood at 21.3%.

For the year under review, your Company crossed the 1 million mark for the rst time, achieving record domestic volumes of 10,76,668 vehicles, an 18.8% increase over the previous year. The Company also posted its highest ever annual SUV sales at 6,60,276 units, re ecting 19.7% growth year-on-year, and recorded peak production levels at both the Kandivali and Chakan plants.

The table below summarises the performance of your Company across various industry segments.

	Industry			M&M			Market Share
Industry Segment	FY25	FY26	Growth	FY25	FY26	Growth	FY25	FY26
Utility Vehicles	27,97,229	31,05,025	11.0%	5,51,487	6,60,276	19.7%	19.7%	21.3%
Passenger Cars	13,53,287	13,78,771	1.9%	0	0	0.0%	0.0%	0.0%
MPV (Vans)	1,51,332	1,59,643	5.5%	0	0	0.0%	0.0%	0.0%
Passenger Vehicles	43,01,848	46,43,439	7.9%	5,51,487	6,60,276	19.7%	12.8%	14.2%
LCV Goods < 2T GVW	1,55,927	1,62,436	4.2%	38,995	38,120	-2.2%	25.0%	23.5%
LCV Goods 2-3.5T GVW	3,11,725	3,48,965	11.9%	1,89,914	2,08,634	9.9%	60.9%	59.8%
LCV Goods < 3.5T	4,67,652	5,11,401	9.4%	2,28,909	2,46,754	7.8%	48.9%	48.3%
LCV Goods > 3.5T GVW	61,422	83,875	36.6%	29,085	45,773	57.4%	47.4%	54.6%
LCV Goods Total	5,29,074	5,95,276	12.5%	2,57,994	2,92,527	13.4%	48.8%	49.1%
M+ICV Goods (7.5 to 18.5T)	1,07,294	1,30,832	21.9%	1,340	1,918	43.1%	1.2%	1.5%
HCV Goods > 18.5T	2,00,197	2,25,017	12.4%	5,457	5,324	-2.4%	2.7%	2.4%
MHCV Goods	3,07,491	3,55,849	15.7%	6,797	7,242	6.5%	2.2%	2.0%
CV Passenger	1,22,114	1,28,746	5.4%	4,296	4,620	7.5%	3.5%	3.6%
CV Goods	8,36,565	9,51,125	13.7%	2,64,791	2,99,769	13.2%	31.7%	31.5%
CV Total	9,58,679	10,79,871	12.6%	2,69,087	3,04,389	13.1%	28.1%	28.2%
3W	7,41,420	8,36,231	12.8%	85,832	1,12,003	30.5%	11.6%	13.4%
Total Domestic	60,01,947	65,59,541	9.3%	9,06,406	10,76,668	18.8%	15.1%	16.4%

• Development Programmes: Mahindra has signi cantly bolstered functional capability building through structured academies.

TheHR Unnati programme offers a comprehensive journey for HR professionals, covering business acumen, analytics, AI, competency-based interviewing, rewards, and IR, culminating in certi cation.

The Tech Wizards agship initiative empowers technology leaders by fostering a growth mindset, executive presence, and cross-functional leadership through immersive, application-led learning.

The Emerging Finance Leaders Program is meticulously designed to develop next-generation nance leaders with strong business, strategic, and nancial capabilities.

A Group-wide Controllership Program, designed with IIM Ahmedabad, equips frontline nance talent to uphold the highest standards of governance.

TheWomen Leadership Development programme, She Is On The focuses on accelerating Rise, women leaders by building con dence, leadership presence, and holistic progression within the Group. MLUs approach seamlessly blends immersive classroom experiences with digital innovation, coaching, and real-world application, transforming programmes into journeys that enable leaders to translate insights into action and drive signi cant business impact. Recognition from reputed forums underscores MLUs dedication to delivering education that is experiential, inclusive, aligned with business realities, forward-thinking, and profoundly human. By championing these forward-thinking programmes, Mahindra unequivocally affirms its dedication to nurturing dynamic pipeline of future-ready leaders, elevating workforce capabilities, and empowering individuals to realise their full potential. These strategic efforts not only propel sustainable organisational advancement but also establish a resilient framework for the Companys long-term prosperity.

Highlights of Digital Learning Initiatives

A pivotal focus for MLU has been seamlessly integrating digital learning into the leadership journey. Throughout the year, MLU launched 34 innovative digital learning initiatives, notably advancing microlearning through bite-sized, high-impact modules designed for effortless access and on-the-go consumption. This strategic approach has enabled scalable, on-demand, and personalised learning experiences, considerably boosting engagement and empowering learners to build capabilities in a exible and continuous manner.

Mahindra Leaders Program (MLP)

At the entry level, MLP stands as the Companys premier campus-to-corporate initiative, tailored for high-potential talent from Indias top B-schools. This dynamic and immersive, rotation-based programme provides participants with early exposure to Group Strategy, core businesses, and cross-sector experiences and learnings. Participants gain a comprehensive understanding of how various business units operate, and more importantly, how strategic decisions interconnect and impact the broader Mahindra ecosystem. This holistic approach ensures that the emerging leaders are not only well-versed in their speci c domains but are also equipped with a nuanced appreciation of the complex, interconnected nature of the organisation, ready to drive synergistic growth and innovation.

Focus on Key Functional Tracks

Capability building is rmly anchored in a tiered, persona-based architecture that fosters structured development aligned with role complexity and leadership maturity. Foundational programmes like Safe2Express and Customer Obsession cultivate shared values, psychological safety, and a customer- rst mindset, ensuring organisational alignment and consistent leadership behaviours. The Signature Programs layer combines leadership, behavioural, and functional capabilities through blended and scalable interventions addressing enterprise-wide priorities such as business acumen, execution excellence, collaboration, and people leadership, while adapting to evolving business needs.

The M-Power U development journey for managers and department heads is delivered through two integrated tracks, Functional Excellence and Leadership Capability. Currently, the functional tracks are delivered in partnership with Indian Institute of Technology, Bombay (for de ned Managerial cohorts) and S. P. Jain Institute of Management & Research (for Department Head cohorts), focusing on operations, commercial capability, product development, and enabling functions, while the leadership track builds self-awareness, stakeholder in uence, and enterprise thinking. Complementarily, at Mahindra Research Valley (‘MRV), there has been an accelerated focus on building a future-ready talent reservoir rich in expertise, diversity, and agility to support the complexity of Software-De ned Vehicle (‘SDV) development. Emphasis on early career hiring, gender and geographic diversity, and niche technology skills has infused fresh perspectives and forti ed critical domains such as ADAS, connected cars, cybersecurity, and electric powertrains. Signi cant investments in skilling, with over

200 Mahindra Technical Academy learning programmes, and the development of world-class innovation infrastructure like battery and cell labs, crash and safety labs, and cybersecurity facilities, have enhanced engineering excellence and fostered a rst-time-right product philosophy. This strategic blend of diverse hiring, early career talent, and focused capability building ensures Mahindras workforce is adept at absorbing fast-evolving technologies and delivering complex, high-quality products swiftly.

Holistic Talent Management And Development

Mahindra adopts a strategic and well-structured approach to Talent Management, ensuring the identi cation, cultivation, and deployment of the right talent across the organisation. A key initiative within this strategy is EDGE (‘Enhanced Development & Growth Experience). EDGE is a agship Talent Development programme at the Auto and Farm Sector of the Group. The programme plays a pivotal role in strengthening the organisations leadership pipeline by systematically identifying, differentiating, and developing high-potential leaders who are critical to future business continuity and growth. The development methodology is anchored in the 3E Model – Education, Experience, and Exposure, a proven approach to building leadership capability by integrating learning, application, and perspective building. In addition, the programme actively supports career mobility through structured rotations and embedded career conversations.

Enabling A Smooth Employee Experience Journey

TheMoments @ Mahindra initiative is a testament to the Companys unwavering dedication to enhancing the employee experience by focusing on those pivotal moments that de ne their journey. Rooted in the value of Care, which encapsulates the essence of our dedication, and inspired by our relentless customer obsession, we extend this ethos internally to our employees. This translates to a continuous effort to listen with purpose, streamline processes, and act swiftly to elevate each moment.

The execution philosophy is guided by principles of Simpli cation, Scalability, Sustainability, and Standardisation, all powered and augmented by Automation and Technology.

Inclusive Hiring

Theemphasis on this domain is re ected in the Companys commitment to promoting diversity in the recruitment processes by striving to attract, retain, and nurture talent from under-represented groups, including women, veterans, gig workers, and individuals with disabilities.

Key initiatives:

• Hire Right: Training hiring managers to eliminate bias and promote inclusive recruitment.

• Establishing Inclusive Job Descriptions: Ensuring all job descriptions emphasise quali cations and skills to attract diverse candidates, and are free from biased language.

• Providing Equal Opportunities: Providing every applicant a fair chance to succeed based on merit, irrespective of their background, promoting a true meritocracy.

• Incentivised Referrals: An additional 25% incentive for employees who successfully refer female candidates, encouraging employees to bring diverse talent into the organisation and broadening the talent pool.

• Network Expansion: Partnering with diverse organisations, educational institutions, and professional networks to access untapped talent pools and enhance workplace inclusion.

• SOAR Returnship Program: Supporting professionals, especially women and under-represented groups, returning to the workforce after a career break through tailored and customised training, mentorship, and integration opportunities.

By prioritising excellence and merit without compromising on its commitment to diversity, Mahindra fosters an environment where individuals thrive based on their abilities, creating a culture of fairness, empowerment, and innovation.

Diversity, Equity And Inclusion

Diversity, Equity and Inclusion continue to be a cornerstone, as evidenced by various innovative and impactful initiatives. These range from focused mentorship programmes that offer bespoke guidance for holistic growth to the Robust ERG and Women Networks that operate to provide unparalleled support and engagement. Every effort is meticulously crafted. Additionally, there are customised professional development platforms, catering to skill enhancement, all of which exemplify the steadfast commitment to an inclusive and equitable environment where every individual is empowered, and every voice ampli ed.

• Mentorship Programme: At the Auto and Farm Sector, the Mentorship Programme is modelled on customised needs, and is an instrumental initiative designed to cultivate a culture of perpetual learning, facilitating the sharing of knowledge, the development of skills, and fostering holistic growth.

• ERGs Network: Across the Auto and Farm Sector, Employee Resource Groups (‘ERGs) Network has grown impressively from its inception with 7 ERGs in FY25 to an expansive 28 ERGs across various locations in FY26, engaging over 200 members. These ERGs are pivotal in addressing local challenges and creating an inclusive workplace that caters to the diverse needs and experiences of employees. Their strategic endeavours are multifaceted, from identifying and bridging process and infrastructure gaps through leadership guidance to championing the Inclusion and Diversity agenda. They support business-aligned initiatives and collaborate with cross-sector ERGs, adopting best practices for widespread impact.

Transformative Work Culture

Driving a deeply transformational culture is steadily rooted in our commitment to nurturing an engaged, innovative, and empowered workforce. Having structured programmes with collaborative practices, the Company creates an environment where employees actively contribute to evolving the work culture.

This foundation emphasises trust, skill development, and governance at all levels, ensuring operations are transparent, fair, and inclusive.

To foster a culture of compliance and professionalism, Mahindra delivers comprehensive training on the Code of Conduct, Prevention of Sexual Harassment (‘POSH), Anti-Bribery and Anti-Corruption (‘ABAC), safety, and human rights to all employees, ensuring fairness, accountability, and ethical behaviour are integral to operations. The organisation also champions inclusive workplace initiatives with gender-neutral workstations, and opportunities for specially-abled associates, re ecting a comprehensive approach to diversity and empowerment.

Building future-ready skills is pivotal, with rigorous identi cation of training needs, and technical development programmes in robotics, electric vehicle technology, mechatronics, and emerging elds. Career growth is further supported through higher education programmes for associates and assistance for diploma trainees, equipping employees to con dently meet technological advancements and industry demands.

TheMahindra Skill Excellence platform elevates shop oor associates through fostering technical pro ciency, process discipline, and behavioural competencies, alongside skill competitions in specialised domains like mechatronics, metallic paint technology, and varied others. This approach not only promotes continuous learning but also instils con dence and pride among employees, aligning talent development with business priorities.

Industrial relations have remained consistently positive, stable, and collaborative, marked by amicable settlements, productivity-linked incentive frameworks, and sustained partnerships between management and unions. Proactive engagement strategies and periodic union meetings have eliminated disputes, fostered mutual trust and supported transformation while maintaining operational continuity and reinforcing Mahindras reputation as a responsible and employee centric employer.

There is also enhanced focus onPioneering the Future of Health and Safety at Mahindra.

At Mahindra, we prioritise health and safety with unwavering dedication, setting high standards and continuously advancing the Companys processes in sync with the latest technological innovations and industry-leading practices. The Employee Health Index offers personalised health monitoring and regular comprehensive check-ups. The Company adopts a holistic approach to health through expert-led sessions on lifestyle enhancement, mental and emotional health, nutrition, and mindfulness for employees and their families.

TheCompany maintains exceptional workplace hygiene and regularly fosters hygiene awareness. Employees actively participate in yoga sessions, preventive healthcare programmes, and awareness initiatives. Digitised safety training kiosks at the key manufacturing locations ensure that safety is second nature. Through these practices, Mahindra leads by example, prioritising the wellness of every individual within the community.

Prevention Of Sexual Harassment At Workplace (POSH)

Focused awareness in this area has been created by a POSH campaign reiterating Mahindras commitment of providing a safe workplace for all its employees. During the year, the Company organised sensitisation and awareness programmes through induction trainings for new joinees, e-learning modules, classroom trainings for employees, trainees as well as third parties visiting the Companys workplaces, sending emailers, creating standees, posters to sensitise all employees on always maintaining a professional conduct and encouraging a speak up culture. Internal Committee members have been trained on Capability and Skill Building. The POSH Policy has been translated into eight vernacular languages.

Performance With Purpose, Total Rewards and Enabling Policies

Mahindras reward approach, rooted in the Rise philosophy, aims to attract, retain, and energise talent while promoting sustainability, inclusion, and customer centricity through a holistic strategy. This strategy integrates compensation, bene ts, well-being, and career opportunities to create an environment where employees thrive.

The performance management system, rooted in the Mahindra Behaviours of Collaborative, Agile, and Bold, transcends traditional ratings, fostering real-time feedback and leadership development. Compensation is fair, merit-based, and market-competitive, with performance-linked variable pay tied to business outcomes like nancial performance, Return on Equity (‘ROE), and increasingly, Environmental, Social, and Governance (‘ESG) metrics.

The Companys comprehensive policies support employee well-being across physical, emotional, and nancial dimensions, with exible bene ts such as medical allowances, education assistance, and sabbatical options. The Company emphasises family support through initiatives like womens travel safety policies, a 5-year maternity support policy, and provisions for surrogacy, adoption, and IVF.

Committed to Diversity, Equity, and Inclusion (DEI), the Company fosters an inclusive culture where every individual has the opportunity to grow and succeed.

The Company had a total of 26,765 permanent employees on its rolls as on 31st March 2026.

Internal Control Systems

Your Company maintains adequate internal control systems commensurate with the nature of its business and size and complexity of its operations. These are regularly tested for their effectiveness by Statutory as well as Management Auditors.

Your Companys Internal Financial Controls are deployed through the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission (‘COSO), that addresses material risks in your Companys operations and Financial reporting objectives.

The framework is a combination of entity-level controls (including Enterprise Risk Management, Legal Compliance Framework, Internal Audit and Anti-Fraud Mechanisms such as Ethics Framework, Code of Conduct, Whistleblower Policy, etc.), process level controls, information technology-based controls, period end nancial reporting and closing controls. Further, the Internal Control Systems have been designed to provide reasonable assurance with regard to recording and providing reliable nancial and operational information. In the highly networked IT environment of the Company, validation of IT Security receives focused attention from IT specialists and Statutory Auditors.

The Chief Internal Auditor reports administratively to the Chairman of the Board and functionally to the Audit Committee. The Internal Audit function develops an audit plan for the Company, which covers, inter alia, corporate, core business operations, as well as support functions. The Audit Committee reviews the annual internal audit plan. Signi cant audit observations are presented to the Audit Committee, together with the status of the management actions and the progress of the implementation of the recommendations. The Audit Committee reviews the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations. During the year, the Company has taken steps to review and document the adequacy and operating effectiveness of internal controls. Nonetheless, your Company recognises that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audits and review processes ensure that such systems are reinforced on an ongoing basis.

Your Companys Management has carried out the evaluation of the design and operative effectiveness of these controls and noted no signi cant de ciencies/material weaknesses that might impact nancial statements as at the Balance Sheet date.

Discussion On Financial Performance With Respect To Operational Performance

Overview

The nancial statements have been prepared in accordance with Ind AS as per the Companies (‘Indian Accounting Standards) Rules, 2015, as amended and noti ed under Section 133 of the Companies Act, 2013 (the Act) and other relevant provisions of the Act.

Financial Information [Standalone]

Property, Plant And Equipment And Intangible Assets

As at 31st March 2026, the Property, Plant and Equipment and Intangible Assets stood at Rs. 24,996 crore as compared to Rs. 23,556 crore as at 31st March 2025. During the year, the Company incurred capital expenditure of Rs. 6,308 crore as compared to Rs. 5,115 crore in the previous year mainly on new product development and capacity enhancement.

Borrowings

(Rs. in crore)

Borrowings	FY26	FY25	Inc./(Dec.)
Long-term borrowings	527	1,056	(529)
Short-term borrowings	529	79	450
Total	1,056	1,135	(79)

Borrowings have reduced from Rs. 1,135 crore in the previous year to Rs. 1,056 crore in the current year mainly due to repayments this year.

Inventories

	FY26	FY25
Raw materials and bought out components as a % of cost of materials consumed	4.5%	5.0%
Finished goods and Stock-in-trade as a % of sales of products	3.1%	4.4%

Raw materials and bought out components as a percentage of cost of materials consumed has decreased due to improved inventory management, better procurement efficiency and lower wastage.

Finished goods and stock-in-trade as a percentage of sale of products has decreased due to better inventory management and increase in sales.

Trade Receivable:

Trade Receivables are Rs. 6,486 crore as at 31st March 2026, as compared to Rs. 5,726 crore as at 31st March 2025. As a percentage of revenue from sales of products and services, trade receivables are lower at 4.5% as at 31st March 2026, as compared to 5.0% for the previous year mainly on account of better collection

Income

	FY26		FY25		Inc./(Dec.)
Particulars	Amount (Rs. in crore)	% to Income from Operations	Amount (Rs. in crore)	% to Income from Operations	%
Revenue from operations	1,45,576	98.5	1,16,484	98.2	25.0
Income from investment related to subsidiaries, associates, and joint ventures	2,190	1.5	2,141	1.8	2.3
Income from Operations	1,47,766	100.0	1,18,625	100.0	24.6
Other income	2,775	1.9	1,712	1.4	62.1

Income From Operations And Other Income

The income from operations of the Company increased by 24.6% as compared to the previous year mainly driven by performance of the Auto and Farm businesses. Sales volume in Auto segment witnessed a growth of 17.6% with sales of 9,95,526 vehicles in the current year as against 8,46,726 vehicles in the previous year. Sales volume in Farm segment witnessed a growth of 23.9% with sales of 5,21,203 tractors in the current year as against 4,20,636 tractors in the previous year. Increase in volumes combined with higher realisation led to Revenue from operations growing by 24.6% as compared to the previous year.

Other income during the year ended 31st March 2026 at Rs. 2,775 crore are higher than Rs. 1,712 crore earned in the previous year mainly on account of higher interest income and fair value gain on certain non-current investments in the current year.

Expenditure

	FY26		FY25		Inc./(Dec.)
Particulars	Amount (Rs. in crore)	% to Income from Operations	Amount (Rs. in crore)	% to Income from Operations	%
Material costs	1,10,766	75.0	86,340	72.8	28.3
Employee bene ts expense	5,290	3.6	4,881	4.1	8.4
Finance costs	250	0.2	250	0.2	(0.4)
Depreciation, amortisation and impairment expense	4,293	2.9	4,227	3.6	1.6
Loss from investment related to subsidiaries, associates and joint ventures	677	0.5	848	0.7	(20.1)
Other expenses	8,542	5.8	8,140	6.9	4.9
Total expenses	1,29,818	87.9	1,04,686	88.3	24.0

The total expenditure during the year as a percentage of income from operation is 87.9% as compared to 88.3% in and higher volume. the previous year. The reduction re ects the cost management initiatives undertaken by the Company.

Material Cost

The material cost as a percentage of income from operation has increased from 72.8% in the previous year to 75.0% in the current year mainly due to in ation in commodity prices and product mix.

Employee Bene ts Expense

The personnel cost as a percentage of income from operations has decreased from 4.1% in the previous year to 3.6% in the current year mainly due to the higher revenue base in the current year.

Other Expenses

Other expenses as a percentage of income from operations has decreased from 6.9% in the previous year to 5.8% in the current year which mainly re ects the cost management initiatives and higher revenue base in the current year.

Loss From Investment Related To Subsidiaries, Associates And Joint Ventures

Loss from investment related to subsidiaries, associates and joint ventures has decreased due to lower impairment of investments in the current year.

Depreciation, Amortisation And Impairment Expense

Depreciation, amortisation and impairment expenses as a percentage of income from operations has decreased over the previous year mainly due to reduced impairment of assets and higher revenue base in the current year.

Finance Costs

The interest expense as a percentage of income from operations remained unchanged at 0.2% in the current year as compared to the previous year.

Tax Expense

The provision for current tax and deferred tax for the year ended 31st March 2026, as a percentage to pro t before tax is 24.1% is lower than 24.3% in the previous year. The key nancial ratios of the Company are given as below:

	M&M
Particulars	FY26	FY25
Debtors Turnover (times)	23.4	22.2
Inventory Turnover (times)	10.7	8.6
Interest Coverage Ratio (times)	77.8	62.0
Current Ratio (times)	1.5	1.5
Debt Equity Ratio (times)	0.01	0.02
Operating Pro t Margin (%)	15.2%	15.5%
Net Pro t Margin (%)	10.6%	10.0%
Return on Equity (%)	23.0%	20.8%

Explanation for variation of 25% or more in Key Financial Ratios:

• Debt Equity Ratio (times): The debt equity ratio is at 0.01 in current year as against 0.02 in previous year, primarily due to repayment of borrowings and higher equity base.

• Interest Coverage Ratio (times): The interest coverage ratio is at 77.8 in current year as against 62.0 in previous year primarily due to higher Operating Pro ts (Pro t before interest, depreciation, amortisation, impairments, loss from investments related to subsidiaries, associates and joint ventures, exceptional items and tax) during the current year.

Consolidated Financial Position of The M&M Group

As on 31st March 2026, for the purpose of consolidation as per Indian Accounting Standards (‘Ind AS), the Group comprised of the agship holding Company Mahindra & Mahindra Limited, 128 Subsidiaries, 20 Joint Ventures and 29 Associates.

The consolidated income from operations is Rs. 1,98,639 crore in the current year as compared to Rs. 1,59,211 crore in the previous year, registering an increase of 24.8%. The consolidated pro t before exceptional items, share of pro t of associates and joint ventures and tax for the current year is Rs. 23,513 crore as compared to Rs. 17,542 crore in the previous year, registering an increase of 34.0%. The consolidated pro t after tax after non-controlling interest and exceptional items for the year is Rs. 17,099 crore as compared to Rs. 12,929 crore in the previous year, registering an increase of 32.3%.

Tech Mahindra Limited, agship company of the Mahindra Group in the IT Sector, reported a consolidated operating revenue of Rs. 56,815 crore in the current year as compared to Rs. 52,988 crore in the previous year, registering an increase of 7.2% (not consolidated in M&M revenue). Its consolidated pro t after tax after non-controlling interests is Rs. 4,811 crore as compared to Rs. 4,252 crore in the previous year, registering an increase of 13.1%.

The Groups nance company, Mahindra & Mahindra Financial Services Limited (‘Mahindra Finance), a listed subsidiary of the Company, reported a consolidated operating revenue of Rs. 21,005 crore during the current year as compared to Rs. 18,463 crore in the previous year, registering an increase of 13.8%. The consolidated pro t after tax after non-controlling interests for the year Rs. 2,855 crore as compared to Rs. 2,262 crore in the previous year, registering an increase of 26.2%. Mahindra Finance customer base has crossed 12.0 million customers and currently has a network of over 1,348 offices. Mahindra Finance reported closing business AUM of Rs. 1,34,096 crore as of 31st March 2026, a growth of 12.1%.

Mahindra Lifespace Developers Limited, the listed subsidiary in the business of real estate and infrastructure, reported a consolidated operating revenue of Rs. 1,178 crore as compared to Rs. 372 crore in the previous year, registering an increase of 216.7%. The consolidated pro t after tax after non-controlling interest for the year is Rs. 298 crore as compared to Rs. 61 crore in the previous year, registering an increase of 388.5%.

Mahindra Holidays & Resorts India Limited, the listed subsidiary in the business of selling vacation ownership and providing holiday facilities, registered a consolidated operating revenue of Rs. 2,992 crore as compared to Rs. 2,781 crore in the previous year, registering an increase of 7.6%. The consolidated pro t after tax after non-controlling interests for the year is Rs. 70 crore as compared to Rs. 128 crore in the previous year, registering a decrease of 45.3%.

Mahindra Logistics Limited, the listed subsidiary in the logistics business, reported a consolidated operating revenue of Rs. 6,999 crore as compared to Rs. 6,105 crore in the previous year registering an increase of 14.6%. The consolidated pro t after tax after non-controlling interests for the year is pro t of Rs. 2 crore as compared to loss of Rs. 36 crore in the previous year, registering an increase of 105.6%.

Swaraj Engines Limited, the listed subsidiary in the business of manufacturing of Diesel Engines and its components, reported operating revenue of Rs. 2,007 crore as compared to Rs. 1,682 crore in the previous year registering an increase of 19.3%. The pro t crore as compared to Rs. 166 crore in the previous year, registering an increase of 18.1%.

SML Mahindra Limited (SML) (formerly known as SML Isuzu Limited), the listed subsidiary primarily in the business of manufacturing and sale of light commercial vehicles (‘LCVs) and medium commercial vehicles (‘MCVs) in the automobile industry and has a product portfolio comprising buses, trucks, and speci c application vehicles, reported operating revenue of Rs. 2,838 crore as compared to Rs. 2,399 crore in the previous year registering an increase of 18.3%. The pro t after tax for the year is Rs. 160 crore compared to Rs. 122 crore in the previous year, registering an increase of 31.1%. SML became a subsidiary of M&M with effect from 1st August 2025.

Segment Results After Share of Pro t/(Loss) of Associates

And Joint Ventures results achieved by business segments of the Group are The given below:

(Rs. in crore)

Segments	FY26	FY25
Automotive	10,383	7,797
Farm Equipment	5,517	4,947
Financial Services	3,779	3,002
Industrial Businesses and	3,705	2,718
Consumer Services
Total	23,384	18,464

Disclaimer

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.