Mahindra & Mahindra Ltd Management Discussions

Mahindra & Mahindra Limited (M&M or Mahindra) is the flagship Company of the Mahindra Group, a globally renowned conglomerate with a wide spectrum of business interests spanning industries and geographies. As a pioneer in innovation and technology, Mahindra has consistently focused on creating solutions that deliver value and empower its customers, partners, and stakeholders to Rise.

Guided by a vision to drive progress, Mahindra is committed to pushing boundaries to develop world-class products and technology-enabled services. By maintaining a sharp focus on customer-centricity, the Company strives to deliver accessible and impactful solutions tailored to meet evolving needs. Innovation lies at the heart of Mahindra, enabling it to adapt to challenges and seize opportunities in a fast-changing world.

Enhancing people capabilities is another pillar of Mahindras growth strategy, ensuring its talent remains future-ready to tackle global and domestic challenges. This approach has allowed Mahindra to strengthen its presence in the domestic market while pursuing ambitious global expansion plans.

with a legacy built on excellence and a forward-looking mindset, Mahindra continues to drive sustainable growth, foster innovation, and empower individuals and communities ¦worldwide, ensuring its commitment to creating a better future remains unwavering.

In FY25, your Company sold 9,41,115 vehicles* (a growth of 14.1% over the previous year) and 4,24,641 tractors (includes domestic sales and exports of Mahindra, Swaraj and Trakstar brands), a growth of 12.2% over the previous year, the highest-ever tractor sales by Mahindra in a given financial year. This represents the highest combined sales of vehicles and tractors in any single year by the Company.

The Automotive and Farm Sectors, along with their subsidiaries, associate companies and joint ventures, achieved global sales# of 1.37 million vehicles and tractors (9,40,181 vehicles and 4,33,471 tractors), a growth of 12.4% over the previous year. includes sales made by Mahindra Last Mile Mobility Limited ("MLMML") & Mahindra Electric Automobile Limited ("MEAL") #includes Domestic sales and sales by subsidiaries

INDUSTRY STRUCTURE, OVERVIEW AND TRENDS

AUTOMOTIVE INDUSTRY

In Calendar Year 2024 (CY24), worldwide sales of Passenger Vehicles and Commercial Vehicles increased to 95.3 million, a growth of 2.7% over the CY23 sales of 92.8 million. Global Passenger Vehicles (PV) and Commercial Vehicles (CV) reported a growth of 3.3% and 1.1% respectively. India was ranked 3^rd in passenger vehicle segment after China and United States of America.

The fastest growing segment worldwide was that of Electric Vehicles (EVs) and has grown at 49% CAGR over the last five years. (Source: Organisation Internationale des Constructeurs dAutomobiles)

The long-term growth outlook for the Indian auto industry remains positive, driven by strong economic fundamentals, progressive government initiatives, rapidly improving infrastructure, and a young, aspirational population.

While the outlook for the industry remains promising, when compared to FY19 pre-COVID levels, it has achieved 95% recovery in commercial vehicles and 93% in two-wheelers. The three-wheeler segment has surpassed FY19 levels, recording sales of 7.4 lakh units. Passenger vehicles, which had already recovered to pre-COVID levels last year, crossed the 4.3 million mark in FY25.

Segment (Domestic sales)	FY19	FY25	% CAGR
Passenger Vehicles	33,77,389	43,01,848	4.11%
Commercial Vehicles	10,07,311	9,56,671	-0.86%
3 Wheelers	7,01,005	7,41,420	0.94%
2 Wheelers	2,11,79,847	1,96,07,332	-1.28%

The Indian auto industry today is sharply focused on accelerating the transition to cleaner mobility, and enhancing road safety. Recognizing the evolving global and domestic imperatives around carbon neutrality and technological self-reliance, the industry has made significant strides in the indigenization of key automotive technologies. A notable achievement was the swift transition to BS6 emission norms within just three years, demonstrating world-class executional agility. Building on this momentum, the industry successfully implemented the BS6.2 emission standards from FY23, further aligning with global benchmarks for emissions control and sustainability.

The Government of India has introduced a series of initiatives to accelerate green mobility and establish India as a global hub for EV manufacturing. The newly approved E-Vehicle Policy and the PM E-DRIVE Scheme, with an outlay of Rs. 10,900 crores over two years (FY25-FY26), aims to drive the adoption of advanced EV technologies, boost domestic manufacturing under the Make in India initiative, promote healthy competition, and achieve economies of scale. These efforts are expected to reduce crude oil imports, lower the trade deficit, and improve environmental outcomes. Additionally, the Voluntary Vehicle Modernization Program is creating a supportive ecosystem for phasing out older, polluting vehicles and enhancing road and vehicular safety.

AUTO INDUSTRY IN FY25

In FY25, the Indian auto industry sales (excluding two-wheelers) have recorded highest ever sales of 6 million units, a 2% growth over the previous peak of FY24. While CVs have shown de-growth of 1.2%, the PVs have reached new heights with 4.30 million sales units, a volume growth of 2.0% over previous year. The total revenue of PVs sold in the industry rose 3.7% during the same period (source: JATO). Over the last ten years, the Utility Vehicle (UV) segment has been key driver of PV growth. UV CAGR from FY15 to FY25 was 17.6% vs PV CAGR of 5.2%. UV, as share of PV, has increased from 21% in FY15 to 65% in FY25. This growth in UV is driven by increased customer preference for command seating, higher ground clearance, superior performance and enhanced range of choices.

The Indian Auto Industry has seen new launches in Electric Passenger Vehicle segment. Electric Utility vehicles have seen 36.4% growth and 2.1% penetration. However, EV adoption in India is led by e-3W; the key drivers being improving operating economies, easy deployment for last/first mile connectivity (including at metro stations) and the growth of start-ups as 3W aggregators. For the year FY25, a total of 1,80,141 e-3W were sold with growth of 55.9%, accounting for 24.3% of the 3W industry.

Industry Segment	Domestic Industry Volume			YoY Growth
	FY23	FY24	FY25	FY23	FY24	FY25
Passenger Cars	17,47,376	15,48,947	13,53,287	19.1%	-11.4%	-12.6%
Utility Vehicles	20,03,718	25,20,691	27,97,229	34.5%	25.8%	11.0%
MPV (Vans)	1,39,020	1,49,112	1,51,332	22.7%	7.3%	1.5%
Passenger Vehicles	38,90,114	42,18,750	43,01,848	26.7%	8.4%	2.0%
MHCV	3,59,003	3,74,012	3,73,819	49.2%	4.2%	-0.1%
MHCV Passenger	38,410	53,768	66,328	225.4%	40.0%	23.4%
MHCV Goods	3,20,593	3,20,244	3,07,491	40.0%	-0.1%	-4.0%
ICV Goods (7.5 to 12T)	35,298	37,667	40,160	1.4%	6.7%	6.6%
MCV Goods (12 to 18.5T)	68,187	75,906	67,134	31.5%	11.3%	-11.6%
HCV Goods >18.5T	2,17,108	2,06,671	2,00,197	52.5%	-4.8%	-3.1%
LCV	6,03,465	5,94,758	5,82,852	26.8%	-1.4%	-2.0%
LCV Passenger	44,315	51,750	54,807	122.1%	16.8%	5.9%
LCV Goods < 2T GVW	1,92,982	1,76,310	1,55,927	12.6%	-8.6%	-11.6%
LCV Goods 2-3.5T GVW	3,31,655	3,19,114	3,10,696	31.6%	-3.8%	-2.6%
LCV Goods > 3.5T GVW	34,513	47,584	61,422	5.8%	37.9%	29.1%
Total CV	9,62,468	9,68,770	9,56,671	34.3%	0.7%	-1.2%
3W Passenger	3,61,094	5,48,090	6,01,642	108.3%	51.8%	9.8%
3W Goods	97,540	1,11,519	1,17,156	28.0%	14.3%	5.1%
3W-e-Rickshaw	26,654	31,290	18,474	151.9%	17.4%	-41.0%
3W-e-Cart	3,480	3,902	4,148	172.9%	12.1%	6.3%
3W	4,88,768	6,94,801	7,41,420	87.0%	42.2%	6.7%
Scooters	51,90,702	58,39,325	68,53,214	26.2%	12.5%	17.4%
Motorcycles	1,02,30,502	1,16,53,237	1,22,52,305	13.9%	13.9%	5.1%
Mopeds	4,41,567	4,81,803	5,01,813	-6.7%	9.1%	4.2%
2W	1,58,62,771	1,79,74,365	1,96,07,332	16.9%	13.3%	9.1%
Quadricycle	725	725	120	484.7%	0.0%	-83.4%
Total Domestic	2,12,04,846	2,38,57,411	2,56,07,391	20.4%	12.5%	7.3%
Total Domestic (Excl. 2W)	53,42,075	58,83,046	60,00,059	32.0%	10.1%	2.0%

TRACTOR INDUSTRY

The key growth drivers were increasing affordability in rural segment with higher Minimum Support Prices (MSPs), growing demand for farm mechanization, emergence of newer technologies in the farming sector, better monsoons and continued Governments focus on improving the state of agriculture in India. The long-term growth outlook for the Indian tractor industry remains positive. Over the period FY09 to FY25, the domestic tractor industry grew at a CAGR of 7.3%.

TRACTOR INDUSTRY IN FY25

Indian tractor industry with an annual sale of 9.39 lakh units in FY25, registered an increase of 7.3% compared to FY24.

In FY25, the Indian tractor industry was supported by the timely arrival of the south-west monsoon which created a positive momentum for the Kharif planting season. Healthy reservoir levels supported rabi crop acreage.

Government measures to improve farm incomes through various schemes further promoted farm mechanization, with investments to improve rural infrastructure. Increased crop procurement and higher MSPs boosted farmers cash flow. Overall real agriculture GVA grew by

4.6% in FY25 compared to 2.6% growth seen in the previous year. Further, Government spending in agriculture also saw a strong growth this year. Your Companys market share in the domestic tractor industry stood at 43.3% in FY25, a gain of 1.7% YoY over FY24.

Exports out of India in FY25 increased by 27% YoY compared to FY24. Exports out of India increased due to turnaround in South Asia markets, increased demand for Indian made tractors and entry into new markets.

YOUR COMPANYS PERFORMANCE

AUTOMOTIVE SECTOR

During the year under review, your Company continued to be in pole position as the largest SUV player by revenue in India*. It is the second largest domestic player in the PV segment by revenue market share. Furthermore, your Company maintained strong UV brand equity, supported by high brand recall and sustained product salience. It is also No. 1 in LCV < 3.5T market share by volume for over a decade.

*As per JATO

Mahindras share of the total Indian Auto industry stood at 15.1%.

For the year under review, we achieved our highest-ever overall volumes of 9,06,406 vehicles in the domestic market, registering a growth of 13.3% over the previous year. We also recorded our highest-ever annual UV sales at 5,51,487 units, marking a growth of 19.9%, supported by record production levels at our Nashik and Chakan plants.

The table below summarises the performance of Mahindra across various Industry segments.

Industry Segment	Industry			M&M			Market Share
	FY24	FY25	Growth	FY24	FY25	Growth	FY24	FY25
Utility Vehicles	25,20,691	27,97,229	11.0%	4,59,864	5,51,487	19.9%	18.2%	19.7%
Passenger cars	15,48,947	13,53,287	-12.6%	0	0	0.0%	0.0%	0.0%
MPV (Vans)	1,49,112	1,51,332	1.5%	13	0	-100.0%	0.0%	0.0%
Passenger Vehicles	42,18,750	43,01,848	2.0%	4,59,877	5,51,487	19.9%	10.9%	12.8%
LCV Goods < 2T GVW	1,76,310	1,55,927	-11.6%	44,093	38,995	-11.6%	25.0%	25.0%
LCV Goods 2-3.5T GVW	3,19,114	3,10,696	-2.6%	1,91,603	1,89,914	-0.9%	60.0%	61.1%
LCV Goods < 3.5T	4,95,424	4,66,623	-5.8%	2,35,696	2,28,909	-2.9%	47.6%	49.1%
LCV Goods > 3.5T GVW	47,584	61,422	29.1%	15,809	29,085	84.0%	33.2%	47.4%
LCV Goods Total	5,43,008	5,28,045	-2.8%	2,51,505	2,57,994	2.6%	46.3%	48.9%
M+ICV Goods (7.5 to 18.5T)	1,00,372	1,07,294	6.9%	1,818	1,340	-26.3%	1.8%	1.2%
HCV Goods > 18.5T	2,19,872	2,00,197	-8.9%	6,146	5,457	-11.2%	2.8%	2.7%
MHCV Goods	3,20,244	3,07,491	-4. 0%	7,964	6,797	-14.7%	2.5%	2.2%
LCV Passenger	51,750	54,807	5.9%	3,341	4,296	28.6%	6.5%	7.8%
MHCV Passenger	53,768	66,328	23.4%	0	0	0.0%	0.0%	0.0%
CV Goods	8,63,252	8,35,536	-3.2%	2,59,469	2,64,791	2.1%	30.1%	31.7%
CV Total	9,68,770	9,56,671	-1.2%	2,62,810	2,69,087	2.4%	27.1%	28.1%
3W	6,94,801	7,41,420	6.7%	77,589	85,832	10.6%	11.2%	11.6%
Quadricycle	725	120	-83.4%	0	0	0.0%	0.0%	0.0%
Total Domestic	58,83,046	60,00,059	2.0%	8,00,276	9,06,406	13.3%	13.6%	15.1%

In FY25, your Company launched several new products, notably the XUV 3X0 and Thar ROXX.

The XUV 3X0

The XUV 3X0, introduced in April 2024 as the New Disruptor in compact SUVs, offered a unique blend of A innovation, safety, comfort, and performance, appealing j/M to both first-time SUV buyers and luxury seekers. ^ "mar ROXX On the 77^th Independence Day in August 2024, we A unveiled the Thar ROXX, which redefined the SUV A landscape with its iconic design, all-new M_GLYDE ^k platform, powerful engines, and premium features like ^k the largest skyroof under 4.5 meters and a Harman Kardon sound system. H

5-star Bharat IXICAP safety rating.

Veero

In September 2024, your Company launched the Mahindra Veero, redefining the < 3.5T Light Commercial Vehicle (LCV) segment. Built on the new Urban Prosperity Platform (UPP), Veero offers a powerful engine, best-in-class mileage, car-like comfort, and first-in-class features such as a touchscreen, power windows, and a reverse camera. It also set new safety benchmarks with segment-first AIS096 norms and the introduction of airbags. Equipped with advanced iMAXX technology for enhanced driving efficiency and fleet management. Veero has been widely praised for its mileage, comfort, and 1 performance.

Veero strengthened our leadership, boosting market share in the LCV segment.

BE 6 & XEV 9e

In November 2024, Mahindra Electric Automobile Limited launched two electric-origin SUVs — the BE 6 and XEV 9e — marking a pivotal moment in our journey towards electric mobility leadership. Built on INGLO platform, Indias first pure-electric architecture, and powered by the intelligence of MAIA, these SUVs signal a new era in Indian automotive engineering showcasing our competence and confidence to compete globally.

The BE 6, with its sporty fastback design, and XEV 9e, with its premium SUV coupe styling and indulgent interiors, offers class-leading technologies such as a coast-to-coast triple-screen immersive cockpit, Harman Kardon 16-speaker sound system with Dolby Atmos, AutoPark, ADAS L2+, and VisionX.

Both models come with 79 kWh and 59 kWh battery options, delivering certified ranges of up to 683 km (MIDC P1+P2). Manufactured at our state-of-the-art Chakan facility, they represent a major step forward in building world-class electric vehicles—Made in India, for the world.

On the first day of bookings, the BE 6 and XEV 9e together received 30,000+ bookings.

FOCUS ON SAFETY

Mahindra continues to uphold its legacy of prioritizing safety, as reflected in the achievements of the Thar ROXX, XUV 3XO, and our electric UVs, the BE 6 and XEV 9e. The Thar ROXX made history as the first body-on-frame UV to earn a 5-star Bharat NCAP rating, while the XUV 3X0 also secured a 5-star rating. Our electric UVs, the BE 6 and XEV 9e, further reinforced this commitment by achieving top 5-star Bharat NCAP ratings and setting new benchmarks in safety. These accomplishments reaffirm our dedication to building Indias safest UVs and eUVs, combining occupant protection with exceptional performance and cutting-edge technology.

Mahindra achieved significant recognition in FY25, becoming the only Indian automotive company featured on TIME Magazines Worlds Most Sustainable Companies 2024¹ list and was ranked 5^th most sustainable automotive company in the list. Our commitment to environmental, social, and governance (ESG) principles was further reinforced with the Best ESG Company in the Automotive award from Dun & Bradstreet India and a Leadership Status in the DJSI World Index 2024. Additionally, Mahindra was honoured as the Company of the Year at The Economic Times Corporate Excellence Awards.

Mahindra also celebrated major milestones in product excellence. Mahindra was further recognized as Manufacturer of the Year by Autocar India, Acko Drives, and Car India Magazine, while the Mahindra Veero received accolades at the Apollo CV Awards 2025.

MAHINDRA LAST MILE MOBILITY LIMITED (MLMML)

In the Last Mile Mobility business, Mahindra Last Mile Mobility Limited (MLMML) sold 1,08,661 vehicles (domestic plus exports) in FY25, as against 1,01,011 vehicles in FY24, registering a growth of 7.6%. Throughout the year, MLMML launched four new products: Treo Plus (Metal), Mahindra Zeo, eAlfa Plus, and Alfa Duo. Treo Plus (Metal) scaled up rapidly following its launch in April 2024, further strengthening MLMMLs position in the passenger electric 3W segment. Additionally, with the launch of Mahindra Zeo, MLMML has successfully entered the 4W electric SCV (Small Commercial Vehicle) segment, offering a superior customer value proposition.

MLMML has achieved significant milestones this FY, including the cumulative sale of

2.00. 000+ EVs and

1.00. 000+ Treo vehicles to date.

In FY25, MLMML sold 78,524 EVs (domestic plus exports) as against 66,190 EVs in the previous year, achieving a growth of 18.6%. With an unwavering focus on innovation and customer-centric solutions, MLMML is poised to continue growth of sustainable mobility in the 3W and 4W SCV segments.

MLMMLs achievements have been recognized with numerous awards, including the Apollo CV Awards for EV of the Year for Mahindra Zeo, as well as the Manufacturing Today Awards for Cost Optimization, Quality, and HR Excellence.

In 4W segment, the launch of Mahindra Zeo marked another important milestone in MLMMLs journey to strengthen the electric 4W last mile mobility. The Mahindra Zeo aims to electrify the SCV segment with best-in-class performance, range and features.

AUTOMOTIVE SECTOR - TRUCK & BUS DIVISION

Despite challenging industry conditions (remaining flat over last 3 years), your Company demonstrated resilience, recording flat growth over the previous year with volumes reaching 13,032 units. While the industry witnessed a de-growth of 5%, your Company limited its de-growth to 1%, showcasing its ability to navigate headwinds effectively.

A remarkable milestone was achieved as your Company attained cash breakeven and posted EBIDTA-positive results for FY25.

The launch of the Furio 8 range of LCV trucks marked a significant breakthrough in our product portfolio. The Furio 8 was honored as the Debutant LCV of the Year at the prestigious Apollo CV Awards 2025, reaffirming our position as a leader in innovation and product excellence.

Looking ahead, your Company remains focused on driving continued growth through multiple strategic initiatives across product enhancements, elevating customer experience, and improving operational efficiencies. These efforts are aimed at further strengthening our market presence and delivering value to our stakeholders.

MAHINDRA CONSTRUCTION EQUIPMENT (MCE)

Your Company, under the Mahindra EarthMaster brand, sold 981 Backhoe Loaders (BHLs), and sold 256 Motor Graders, under the RoadMaster brand. Notably, your Company retained its position as the market leader (~23% Market Share) in the Motor Grader segment, a testament to its robust product offerings and strong customer trust.

Moreover, your Company achieved an exceptional milestone in the export markets by recording a significant growth of 124% YoY. A total of 228 units of construction equipment were exported, reflecting the growing acceptance of Mahindra products in international markets and the success of strategic efforts to expand the global footprint.

EXPORT FROM INDIA - AUTOMOTIVE SECTOR

Mahindras Automotive Sector exported 34,709* vehicles in FY25, achieving 41% growth. Subsidiaries in South Africa and Australia posted their highest-ever volumes, with retail growth of 40% and 27% respectively.

The XUV 3XO ranked among the best-selling UVs within six months. Mahindra South Africa expanded Semi Knocked Down (SKD) capacity and signed an MoU with the Industrial Development Corporation to explore a Completely Knocked Down (CKD) facility. In Tunisia, the XUV 3OO was awarded Best Selling Crossover at Victoires de lAutomobile 2025. In South Asia, Mahindra retained leadership in the pick-up segment, while continuing to scale operations across global markets. includes exports from MLMML

FARM EQUIPMENT SECTOR

Tractor sales have grown on account of favorable weather conditions, competitive crop prices, positive terms of trade for farmers, and the lifting of export restrictions on key commodities such as non-basmati rice. This trend is expected to continue, indicating ongoing positive momentum for this sector.

During the year, your Company marked numerous achievements, from a product, manufacturing and global perspective, amidst strong appetite for mechanisation among farmers, with an increase in sales in both the domestic and export markets.

The year marks the highest-ever yearly domestic sales achieved by your Company

During the period under review, your Company sold a total of 4,24,641 tractors (domestic plus exports from India), under the Mahindra, Swaraj and Trakstar brands, against 3,78,386 tractors sold in the previous year, registering a growth of 12.2%.

Your Company sold 4,07,094 tractors, as compared to 3,64,526 tractors in the previous year in domestic market (these figures for the current year sales and previous year sales include tractors sold by Gromax Agri Equipment Limited, a subsidiary of the Company), reflecting a growth of 11.7%, as against the industry growth of 7.3%.

Your Company achieved its highest-ever market share in FY25 at 43.3% and continued its position as the domestic market leader for the 42^nd consecutive year. Your Companys performance was supported by good performance of all products in the portfolio across all three brands viz. Mahindra, Swaraj and Trakstar.

Farm Mechanisation is an important enabler to address the concerns of farm productivity and farm labour shortage. Your Company has aggressive plans to grow its Farm Machinery business, through the launch of Made in India farm machinery products. Mahindra has successfully built a portfolio catering to all the stages of farming applications - Tillage to Post Harvesting.

During the year, Mahindra Farm Machinery clocked the highest ever revenue, crossing the mark of Rs. 1,000 crores (including MITRA Agri Equipments Private Limited, a subsidiary of the Company), with 18.4% growth this year.

In Harvesters, we gained momentum, with the recent launch of the Swaraj 8200 and the Mahindra 2100 Crawler Harvester launched during FY25. We have also built a successful base in other products like Loaders, Straw Reapers, Threshers, Balers, etc. that will bring in significant revenue for us in the coming years. Your Company also launched various products that further strengthen the presence in rotavator category and also launched new Loaders and Backhoes for the North American market. Your Company became the highest exporter of Loaders from India, exporting to the North American market.

Besides rolling out new products, your Company is also focusing on:

EXPORT FROM INDIA - FARM EQUIPMENT SECTOR

For the year under review, your Company exported 17,547 tractors, a growth of 26.6% over last year, registering the second highest-ever exports from India. This was by opening of new markets for Mahindra, in Africa and ASEAN. Your Company also increased exports of the new OJA range from India to the U.S. market. Improved market conditions in Sri Lanka, Bangladesh and Nepal further supported exports of Mahindra Tractors out of India. During the financial year, your Company set up a new subsidiary in Thailand for the ASEAN region called Mahindra Southeast Asia Limited (MSEAL).

In FY25, Mahindra launched the new Mahindra OJA in Thailand, the largest tractor market in the ASEAN region.

Going forward, your Company will launch the Mahindra Tractor brand in new markets across Europe and ASEAN, while consolidating its presence in existing markets, for faster growth of overall exports from India.

ALLIED BUSINESSES

MAHINDRA POWEROL

Mahindra Powerol has been a significant player in the power back-up industry for over 20 years. Among the Top 2 players (by volume) in the overall Power Generation market, Mahindra Powerols network is spread over 800 service and sales touchpoints nationwide and over 12 overseas locations. The Companys distinct business model strategically balances its service and product contributions, each equally vital to its revenue generation.

In addition to Telecom, Powerol has also been focusing on increasing its retail market share by HkVA range extensions.

With a focus on green energy, Powerol has also initiated an EV charger business for home charger installations. Mahindra Powerol has already installed over 10,000 chargers nationwide.

Your Company is also into Energy Storage Solutions through Li-ion batteries.

TWO-WHEELER SEGMENT

In line with the strategy for the two-wheeler business, your Company through its subsidiary, Classic Legends Private Limited had re-introduced the iconic brands Jawa and Yezdi to the Indian market in the FY19 and FY22 respectively. During FY23, 42 Bobber was introduced and during FY24, Jawa 350 was introduced to the Indian market. In addition, the Company forayed into new international markets through iconic British brand BSA in UK and European market.

During FY25, the Company launched its third iconic brand into Indian market ‘BSA by launching BSA Gold Star 650.

The Company also added one more product to Jawa 42 FJ into Jawa portfolio in FY25.

OPPORTUNITIES AND THREATS

AUTOMOTIVE SECTOR

The Indian automotive industry, recognized as a sunrise and champion Sector, plays a vital role in the economy-contributing 6.8% to Indias GDP and over 40% to manufacturing GDP. In FY25, PV sales hit a record 4.3 million units, while CV saw a 1.2% decline. Excluding two-wheelers, the industry recorded its highest-ever sales at 6.0 million units, reflecting 2.0% YoY growth.

Growth in the UV segment continues to be driven by strong consumer preference and product innovation, with UV launches far outpacing launches in the Passenger Car segment over the past two years. To reduce oil dependency, the industry is actively exploring alternative fuels such as CNG, LNG, ethanol, and flex fuels, alongside investments in next-gen technologies like Electric battery and hydrogen.

Government initiatives are accelerating the alternative fuel transition. The PM E-DRIVE Scheme aims to boost EV manufacturing with a strong ecosystem, while the Voluntary Vehicle Modernization Program supports the phasing out of unfit vehicles. In addition, the E-Vehicle Policy promotes India as a global EV manufacturing hub. Complementing these, Production Linked Incentive (PLI) Schemes for automobiles, auto components, ACC batteries, and semiconductors are addressing cost challenges and advancing Indias capabilities in Electric battery and hydrogen technologies.

FARM EQUIPMENT SECTOR

With a strong emphasis on agriculture as a key engine of Indias future, through Union Budget 2025, the Government announced a slew of measures. This is by encouraging sustainable farming practices, strengthening irrigation, improving storage, increasing credit and enhancing capacity in food processing. These initiatives truly have the potential to make India a food basket of the world while driving resilience of the rural economy.

Robust government support has spurred uptake in farm mechanisation and contemporary farming techniques, alongside broader rural development efforts.

India which has a substantial base of small and marginal farmers, grapple with numerous areas characterized by limited penetration of farm mechanisation. As labour scarcity persists, escalating labour costs, widespread adoption of diverse mechanisation methods emerge as the way forward. Considering these circumstances, the trajectory of the tractor and farm machinery market is anticipated to exhibit long-term growth.

ALLIED BUSINESSES

The rising demand for power back-up solutions and infrastructure development will create opportunities in the power generation and infrastructure equipment space. This is an opportunity for the Company to grow its offerings in power solutions and construction equipment.

RISKS AND CONCERNS

AUTOMOTIVE AND FARM EQUIPMENT SECTORS

The Companys business is exposed to many internal and external risks and it has consequently put in place robust systems and processes, along with appropriate review mechanisms to actively monitor, manage and mitigate these risks.

COMPETITIVE INTENSITY

Given the high growth potential of the Indian automotive market, both domestic and global OEMs have established a strong presence across all vehicle segments. Multinational players are now deeply entrenched, supported by local R&D centres, supplier networks, and widespread channel reach. In the passenger vehicle segment, the line between cars and utility vehicles (UVs) has blurred, with demand shifting decisively toward UVs-resulting in more UV launches than Passenger Cars.

By FY24, two out of every three PVs sold were UVs. From crossing 1 million UV sales in FY20, the segment surged past 2.8 million annual units within five years. In commercial vehicles, LCV < 3.5T continue to lead, accounting for over 50% of sales.

To stay competitive and sustain its leadership, Mahindra continues to invest in new product development, technology upgrades, expanded channel reach, and customer-centric offerings across products, services, and brand building.

TAX REGULATIONS

India has traditionally maintained differential tax rates for passenger vehicles based on length, ground clearance, engine size, and fuel type. While Mahindras flagship products attract higher taxes, we have strategically expanded our UV portfolio-featuring models like XUV 3XO, Bolero Neo, Bolero, and Thar-that fall under lower tax slabs. Our electric UVs, including the XEV 9e, BE 6, and XUV 4OO, attract the lowest GST among all PV categories.

NEW REGULATION FOR SAFETY

Growing road safety concerns are driving regulatory reforms. New norms often require technology upgrades

and add to vehicle costs. Mahindra is well-prepared and confident in meeting all emerging safety standards.

NEW PRODUCTS AND TECHNOLOGIES

Mahindra continues to invest in future-ready product and technology development to remain competitive, meet evolving customer expectations, and comply with regulations. Alongside electrification, we are advancing alternative fuel technologies.

ENVIRONMENT AND ALTERNATE FUELS

Amidst rising air quality concerns and the push to reduce fossil fuel dependence, the Government is promoting large-scale EV adoption-particularly for intra-city fleet use. As an EV pioneer in India, Mahindra is actively developing electric mobility solutions while also investing in alternative fuel platforms.

COMMODITY PRICING

Commodity prices in FY25 fluctuated sharply due to global supply-demand imbalances, policy uncertainties, and geopolitical disruptions. Mahindra remains focused on cost optimization through value engineering, supplier negotiations, and long-term price contracts. We continue to actively manage risks through robust hedging practices under Board-approved foreign exchange and commodity risk management policies.

CAPACITY

Mahindra produced over 8 lakh PV and CV units in FY25, with capacity utilization exceeding 85%. We operationalized a cutting-edge eUV plant and a battery manufacturing unit with 98% automation. Our Vision AI-based processes have enhanced production robustness. A dedicated capacity of 90,000 units annually has been created for our next-generation electric vehicles. Partnering with key suppliers, we are leveraging digital tools to scale supply chain capacity and responsiveness.

INADEQUATE EV CHARGING INFRASTRUCTURE IN THE COUNTRY

To support 30% penetration in 4W category as per Government of Indias vision by 2030, we would need an estimated ~1.4 lakh DC charging points across cities and highways, which is ~10X more than the currently estimated Direct Current Charging Points infrastructure in India. The ramp up of fast charging is supported well by Government of India through various incentive schemes such as PM E-DRIVE. At Mahindra, we are establishing home chargers as per customers needs which caters to ~85-90% of the charging demand of an individual customer and also contributing to scale the Public EV charging infrastructure through various participating models.

MONSOON

The success of agriculture and the rural economy hinges on a normal monsoon. The Tractor and Automotive Sectors are particularly vulnerable to monsoon fluctuations, which can result in reduced demand. Unpredictable or uneven monsoon patterns pose a significant business risk. In addition, an untimely monsoon and uneven spread has the potential of adversely impacting the business.

• Indian Meteorological Department (IMD) in its first long range forecast indicated, monsoon will be above normal, i.e., > 104% of Long Period Average (error margin of +/-5%) for the four-month long period of June to September. La Nina this season is weak and El Nino which normally disrupts Indian monsoon is ruled out. Neutral ElNino Southern Oscilliation conditions and neutral Indian Ocean Dipole conditions is likely to lead to normal to above normal monsoon this year.

• As per IMD, spatial distribution is likely to be above normal in most parts of the country, apart from small pockets of southern and northeastern region, where below normal rainfall is possible. However, it will be key to watch out for the onset and temporal distribution of rainfall.

• Early onset of monsoon and IMDs affirmation of above-normal rainfall is expected to boost rural sentiments.

OUTLOOK - AUTOMOTIVE AND FARM SECTORS

Mahindras Automotive and Farm sectors aim to sustain profitable growth, maintain domestic leadership, and expand globally. We remain focused on achieving cost leadership through targeted cost optimization, productivity gains, value engineering, efficient supply chain management, and synergies across group businesses.

AUTOMOTIVE BUSINESS

Automotive industry in India is one of the main pillars of the Indian economy and was christened as the Sunrise Sector of the economy by the Ministry of Heavy Industries. Honble Prime Minister unveiled Indian Auto Industry Vision @ 2047 mentioning Auto Industry is the engine of economic growth.

The automotive industry is undergoing a transformative shift towards electric vehicles (EVs), driven by rising consumer demand for sustainable mobility, regulatory pressures to reduce carbon emissions, and advancements in battery technology. EV sales have surged globally, reshaping the automotive manufacturing landscape.

The rise of Industry 4.0 is transforming automotive manufacturing. Technologies such as Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and Robotics are enhancing production processes, improving productivity, reducing costs, and enabling greater flexibility. These digital advancements are not only optimizing manufacturing but also fostering new business models centered around smart factories and connected vehicles.

Factors that will influence demand for automobiles in near future are:

1 Policies like Production Linked Incentives (PLI),

PM E-DRIVE, Voluntary Vehicle Modernization Program by the Government to boost consumption and promote EVs.

Aggressive Government push for r infrastructure-led growth.

TRACTOR AND FARM EQUIPMENT BUSINESS

The mid to long term outlook for the Indian tractor industry is positive. The industry is expected to see another positive year for tractors and farm machinery. Expectations of a normal monsoon, positivity in farm sentiments along with higher price realization of key crops is expected to boost industry growth. The Government of Indias budget further provided a fillip for growth of the agriculture, a key engine of Indias future.

The Governments focus on infrastructure and rural development is likely to benefit commercial demand. Further, the demand for mechanisation is also growing on account of increase in labour cost owing to a shortage of agricultural labourers. Several enabling factors supporting industry growth like increasing cropping intensity, diversification, institutional credit, consolidation of farm holdings by Farmer Producer Organizations (FPOs), etc. have shown a positive trend in the last few years. The Government subsidy for mechanisation will increase mechanisation coverage amongst small farmers. An increasing trend of more farmers taking technical advice in agriculture also reflects the growth of progressive farmers.

Rising global commodity prices and logistics disruptions could exacerbate input costs, fuelling inflationary pressures. Spatial distribution is likely to be above normal in most parts of the country, apart from small pockets of southern and northeastern region, where below normal rainfall is possible. However, it will be key to watch out for the onset and temporal distribution of rainfall.

STRATEGY

AUTOMOTIVE SECTOR

Mahindra delivered a standout year, retaining our position as Indias #1 UV brand and #2 PV domestic manufacturer by revenue. We also maintained leadership in LCVs and electric 3-wheelers with the highest market share in both segments.

This year saw a series of high-impact launches—XUV 3XO, Thar ROXX, XEV 9e, and BE 6 in India, and XUV 3XO in South Africa—drawing exceptional customer interest. These successes were shaped at our global design hubs, M.A.D.E (UK) and Mahindra India Design Studio, and powered by the innovation ecosystem at Mahindra Research Valley, our flagship R&D centre. Our strong commitment to ESG was reinforced by Mahindra & Mahindra Limited securing Leadership Status in the DJSI (Dow Jones Sustainability Indices)

World Index 2024 for the fourth consecutive year, making us the only Indian auto company, and second in the global auto and components industry, to achieve this distinction.

We were also featured in TIME Magazines and Business Worlds lists of the Worlds Most Sustainable Companies (June and October 2024). We have committed to increasing renewable energy share from 34% to 60% by FY26, helping abate over 1,84,000 tons of CO₂ emissions. Additionally, our onboarding on the International Material Data System (IMDS) marks a significant leap in material circularity. Mahindra is set to sustain momentum through continued innovation, global growth, and enhanced customer experience—especially in our electric vehicle portfolio.

FARM EQUIPMENT SECTOR (FES)

In FY25, your Company achieved 12% volume growth over the last FY and grew market share to 43.3% in the domestic tractor market. This growth was due to favourable market conditions and increased competitiveness of both the Mahindra and Swaraj brands.

In keeping with the Companys product plan of expanding our light-weight tractor portfolio FY25 saw the launch of the new PROJA and Narrow Track variants of the OJA. Versatile and operationally efficient the new OJA tractors boast a narrow track width making them suitable for specialized operations. Swaraj also expanded its compact light-weight tractor offerings, with the launch of Target 625, 25 HP tractor.

The year also saw the launch of the Mahindra 275 TU PP, Mahindra 275 TU HT, Mahindra Yuvo Tech+ Special Edition, and Mahindra Arjun 605 MS V1. The introduction of Naya Swaraj tractor range in the 30-40 HP segment was well received. Introduced in FY24, the Naya Swaraj range marked a transformative leap in the brands approach towards holistic solutions, targeted at forward-thinking farmers. Swaraj augmented its tractor manufacturing capacity and commissioned its third tractor manufacturing facility located in Humayunpur, Punjab. This plant is known for its advanced manufacturing processes and sustainable practices.

The Farm Machinery business introduced several new products during the year. FES continued to expand its presence in the Harvester market, with the Swaraj 8200 Intelligent Harvester and the Mahindra 2100 Crawler Harvester, launched during FY25 which led to a significant growth of our harvesters product line.

During the FY, Mahindra fortified its position in the rotary tiller category by launching new products across geographies and remains the 2^nd largest manufacturer in the country. Your Company also enhanced its presence in the loader segment for the domestic market.

In the exports market, your Company sold 17,547 tractors, a growth of 26.6% over last year. Driven by improved market conditions in Sri Lanka, Bangladesh and Nepal, increased exports of the new CDA range to the U.S. and opening-up of new markets like Africa and ASEAN.

Exports of implements and attachments to the U.S. like rotary tillers, loaders and backhoes were substantially scaled up during the year. During the financial year, your Company set up a new subsidiary in Thailand for the ASEAN region called Mahindra Southeast Asia Limited (MSEAL).

MAHINDRA LAST MILE MOBILITY LIMITED

Mahindra Last Mile Mobility Limited continues to maintain its leadership as Indias #1 EV 3W player, with a market share of 42.9% in EV 3Ws (as per SIAM). In its endeavour to grow and expand its market presence, your Company is focused on developing cutting-edge products, enhancing customer-centricity through tailored solutions, and driving channel expansion. Furthermore, the Company is committed to ecosystem solutioning by fostering partnerships and creating integrated offerings that address the entire mobility value chain.

The recent launches have gained significant traction in passenger and cargo segments, reflecting your Companys ability to combine product excellence, customer satisfaction, and sustainability to fuel long-term growth.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND EMPLOYEE RELATIONS

• Mahindra Leadership University: The Mahindra Leadership University (MLU) has shaped impactful initiatives throughout FY25. MLU designs and executes programs targeted at key leadership competencies, informed by insights derived from people conversations, regular engagements with CEOs and CHROs, and comprehensive market analyses. In FY25, MLU Delivered 150 programs - a steep uptake from last year.

• Mahindra Accelerated Leadership Track (MALT):

In collaboration with Carnegie Mellon University, MALT aims at identifying and nurturing high-potential mid-career professionals within Mahindras diverse business ecosystem. Through 4 successful batches, 136 promising associates have been groomed for future leadership.

• Future Shapers: This initiative, designed to enhance leadership capabilities and prepare participants to lead Mahindras growth agenda, was meticulously developed in partnership with Harvard University and top-tier global consulting firms. Over 4 cohorts, the program has empowered 111 talented individuals to innovate, inspire teams, and drive the Companys evolution into the future.

• Development Programs: Aimed at fostering leadership excellence, diversity, and capability enhancement, Mahindra introduced a series of groundbreaking initiatives tailored to meet the dynamic needs of its workforce.

? The Tech Wizards Program focuses on equipping mid-level technology leaders with critical business insights and leadership acumen.

? Similarly, the Emerging Finance Leaders Program (EFLP), designed in collaboration with esteemed subject matter experts, offers a comprehensive curriculum that empowers upcoming finance leaders with the expertise to make impactful decisions and lead effectively.

? The Controllership Program is a Group-wide initiative designed with IIM Ahmedabad, for frontline finance talent in controllership. This program equips participants with skills related to designing and implementing formal control systems, in line with our efforts of upholding the highest standards of governance.

? The "She Is On The Rise" initiative, dedicated to advancing gender diversity, exemplifies Mahindras commitment to inclusivity by enabling junior-level women leaders to thrive and progress in their careers.

By driving these innovative programs, Mahindra reinforces its commitment to building a robust pipeline of future-ready leaders, advancing workforce competencies, and empowering individuals to reach their full potential.

These efforts not only contribute to sustainable organizational growth but also establish a solid foundation for the Companys long-term success.

As a testament to our vision, MLU facilitated over 150 programs, including five leadership journeys, impacting more than 2,200 participants in FY25.

HIGHLIGHTS OF DIGITAL LEARNING INITIATIVES

To elevate the learning experience across Mahindra Group Companies, we use the cutting-edge EdCast by Cornerstone Learning Experience Platform. Beyond conventional e-learning modules, the platform has facilitated over 50 unique engagements throughout the year, driving impressive adoption rates and enhancing learner satisfaction.

In FY25, the platform achieved full utilization with 100% adoption and over one million learning items consumed—a testament to Mahindras skills-focused approach to employee development. As demand for high-quality learning resources continues to soar, the platform will play a critical role in capability-building initiatives in the years to come.

RE-IMAGINING THE NASHIK CAMPUS

The Nashik MLU campus stands as a state-of-the-art learning hub, thoughtfully designed to cater to the needs of the modern workforce. Strategically located within a 100 km radius of numerous Mahindra plants and offices, on average, the campus welcomes more than 9,500 learners annually and boasts world-class infrastructure, including classrooms capable of hosting over 150 participants simultaneously.

In FY25, the campus hosted 12,753 learners, achieving an exceptional satisfaction score of 4.73 for its immersive in-campus learning experience.

FUNCTIONAL TALENT ACCELERATORS AT MAHINDRA & MAHINDRA

MRV approaches strengthening the pipeline of technical expertise in product development and related fields through the Tech Ladder framework—a pioneering methodology aimed at identifying and nurturing technical talent.

This framework integrates performance management, talent development, and capability-building strategies to ensure sustained growth and excellence. Currently, the Tech Ladder caters to over 3,500 engineers, spanning multiple Centres of Excellence (CoEs) and project functions, solidifying Mahindras reputation for cultivating technical leadership and innovation across divisions.

MAHINDRA LEADERS PROGRAM (MLP)

The MLP is a flagship initiative designed to attract and develop entry-level leadership talent from the nations premier business schools. This program reinforces Mahindras reputation as an Employer of Choice within top B-School campuses and builds a robust pipeline of future leaders to drive organizational growth.

As part of their onboarding experience, MLP participants engage in a year-long stint with the Group Strategy Office and Partnership & Alliances teams. This exposure provides them with a comprehensive understanding of Mahindras diverse businesses and equips them with the skills and perspectives needed to excel in leadership roles.

GROUP DIVERSITY COUNCIL

At Mahindra, fostering Diversity and Inclusion (D&I) is integral to our organizational values and practices.

The Group Diversity Council plays a pivotal role in advancing D&I initiatives, utilizing a metrics-based scorecard to emphasize gender diversity while allowing flexibility for Mahindras Group Companies to address other facets of inclusion. Under our Equal Opportunity Policy, new hires are provided with tailored training programs to support their integration and success. Initiatives like the Speak Up campaign raise awareness about the Prevention of Sexual Harassment (POSH), complemented by refresher modules facilitated by Ethics Counsellors.

Additionally, Mahindra has implemented the Employee Resource Group (ERG) framework, aimed at promoting gender diversity and addressing unique individual and location-specific needs.

ENABLING POLICIES

At Mahindra, our recent revisions to HR policies have ensured alignment with modern workplace needs, offering robust support across multiple dimensions:

Employee Benefits: From medical allowances

I to education assistance, mobile reimbursements, and sabbatical options, our policies aim to empower employees both professionally and personally.

# Family Benefits: To foster a supportive environment for families, we have introduced initiatives such as womens travel safety policies, an extensive 5-year maternity support policy, and provisions for surrogacy, adoption, and IVF.

FOCUSED HIRING

Mahindra actively champions diversity in its hiring practices, working to attract, retain, and develop talent from underrepresented groups such as women, veterans, gig workers, and persons with disabilities. Gender diversity within technology and business operations remains a key focus area, supported by fair and inclusive recruitment processes. Key initiatives include:

• Training for Hiring Managers: Through the Hire Right program, we equip managers with tools and techniques to identify and eliminate biases in hiring decisions, fostering a culture of diversity and inclusion.

• Inclusive Job Descriptions: Leveraging AI-enhanced tools, we ensure job descriptions are free from biased language, emphasizing qualifications and skills to attract diverse applicants.

• Equal Opportunities: Every applicant is provided a fair chance to succeed, irrespective of their background, ensuring a meritocratic hiring process where skills and talent are prioritized.

• Incentivized Referrals: Our referral program offers an additional 25% incentive for female referrals, encouraging employees to bring diverse talent into the organization and broadening the talent pool.

• SOAR Returnship Program: Programs such as SOAR empower women re-entering the workforce, offering flexible opportunities and professional development to reignite their careers.

• Expanding Networks: We actively collaborate with specialized agencies like Military2Corp for veterans, Flexing It for gig workers, and Wisdom Circle for retirees, widening our reach and connecting with diverse professional groups.

While diversity and inclusion remain central to our hiring philosophy, merit and qualifications remain the foundation of all recruitment decisions.

By prioritizing excellence, we create an environment where individuals can thrive based on their abilities, fostering a culture of fairness, empowerment, and innovation.

TALENT MANAGEMENT

A key initiative within this strategy is EDGE (Enhanced Development and Growth Experience), an active talent pool designed to nurture high-potential mid-career professionals, creating a seamless progression into the MALT program. EDGE participants undergo a multi-faceted development journey that includes sprint coaching, executive education, global study missions, and leadership-focused modules.

Mahindra adopts a -well structured and strategic approach to Talent Management, ensuring the identification, cultivation, & deployment of the right talent across the organization.

Mahindra is deeply committed to empowering women in their career journeys across all levels of the organization. Initiatives such as the Women Mentoring Program provide women in managerial roles with expert guidance and coaching from senior leaders, helping them navigate career growth and achieve professional success.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE (POSH)

Awareness in this area has been created by a POSH campaign reiterating Mahindras commitment to providing a safe workplace for all its employees.

During the year, the Company organized sensitization and awareness programs through inductions training for new joinees, sending emailers, creating standees and posters to sensitize all employees to conduct themselves in a professional manner. Internal Complaints Committee members were trained on Capability and Skill Building. POSH Policy is translated in 8 vernacular languages.

TRANSFORMATIONAL WORK CULTURE

Mahindras Transformational Work Culture initiative seeks to foster an engaged and empowered workforce while building an innovative and competitive shop-floor ecosystem. Efforts under this initiative include cultivating self-managed teams and introducing training programs such as Nayi Soch - Naya Drishtikon, which focus on mindset transformation for cell members, union leaders, line officers, and their families.

Structured engagement calendars have been implemented to strengthen trust and fairness across workforce categories, alongside programs like i4 Idea Generation, the Rise Award, and the Employee of the Year recognition, all aimed at fostering collaboration and rewarding excellence.

As part of our commitment to governance and ethical conduct, all employees participate in training sessions covering the Code of Conduct, POSH, Anti-Bribery and Anti-Corruption, and Human Rights.

Mahindra invests in capability-building initiatives to ensure employees are equipped ¦with future-ready skills.

Specialized training programs prepare employees for emerging technologies such as robotics, mechatronics, auto electric diagnostics, and electric vehicle technologies, while others focus on improving life skills, personal presence, and transitioning from academia to industry.

INDUSTRIAL RELATIONS

Industrial relations at Mahindra remain positive and collaborative across all manufacturing locations. In FY25, long-term wage and bonus agreements were concluded amicably at every plant. These sustained efforts to build a culture of trust and transformation contributed to zero production losses during the year, underscoring the effectiveness of our approach.

HEALTH AND SAFETY

We uphold rigorous safety standards and continuously refine processes in line with technological advancements and industry best practices. The Employee Health Index serves as an individualized monitoring tool, helping to identify employees who may require focused counselling and support.

Expert-led awareness sessions on lifestyle improvement, mental and emotional well-being, nutrition, and mindfulness are regularly conducted for employees and their families, reinforcing Mahindras commitment to holistic wellness.

MAHINDRA SKILL EXCELLENCE

Designed to focus on holistic development of shop floor associates, this program prepares employees to meet evolving industry demands. In FY25 alone, 2,758 associates across manufacturing units participated, underscoring the programs role in driving workforce capability and excellence.

Through these efforts, Mahindra continues to cultivate a workplace that balances innovation, inclusivity, and ¦well-being, ensuring employees are equipped to thrive in a dynamic environment.

The Company had a total of 25,222 Permanent employees on its rolls as on 31^st March, 2025.

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, Whistle-Blower Policy, etc.), process level controls, information technology-based controls, period end financial reporting and closing controls.

Further, the Internal Control Systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information. In the highly networked IT environment of the Company, validation of IT Security receives focussed 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. Significant 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 design and operative effectiveness of these controls and noted no significant deficiencies/material weaknesses that might impact financial statements as at the Balance Sheet date.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Overview

The financial statements have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015, as amended and notified 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 31^st March, 2025, the Property, Plant and Equipment and Intangible Assets stood at Rs. 23,556 crores as compared to Rs. 21,568 crores as at 31^st March, 2024. During the year, the Company incurred capital expenditure of Rs. 5,115 crores (previous year Rs. 5,042 crores) mainly on new product development and capacity enhancement.

BORROWINGS (Rs. crores)

Borrowings	FY25	FY24	Decrease
Long-term borrowings	1,056	1,135	(79)
Short-term borrowings	79	450	(371)
Total	1,135	1,585	(450)

Borrowings have reduced from Rs. 1,585 crores in the previous year to Rs. 1,135 crores in the current year mainly due to repayments in the current year.

INVENTORIES

	FY25	FY24
Raw materials and bought out components as a % of cost of materials consumed	5.0%	5.0%
Finished goods and Stock-in-trade as a % of sales of products	4.4%	5.3%

Raw materials and bought out components as a percentage of cost of materials consumed are same as previous year. However, finished goods and stock-in-trade as a percentage of sales of products has decreased due to focused inventory management and higher sales traction of new products.

TRADE RECEIVABLE

Trade Receivables are Rs. 5,726 crores as at 31^st March, 2025, as compared to Rs. 4,568 crores as at 31^st March, 2024. As a percentage of revenue from sales of products and services, trade receivables are higher at 5.0% as at 31^st March, 2025, as compared to 4.7% for the previous year mainly on account of significant increase in export receivable.

RESULTS OF OPERATIONS

INCOME

Particulars	FY25		FY24		Inc./(Dec.)
	Amount (Rs. crores)	% to Income from Operations	Amount (Rs. crores)	% to Income from Operations	% to Income from Operations
Revenue from operations	1,16,484	98.2	99,098	97.8	17.5
Income from investment related to subsidiaries, associates, and joint ventures	2,141	1.8	2,238	2.2	(4.3)
Income from Operations	1,18,625	100.0	1,01,336	100.0	17.1
Other income	1,712	1.4	1,956	1.9	(12.5)

INCOME FROM OPERATIONS AND OTHER INCOME

The income from operations of the Company increased by 17.1% 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 8.5% with sales of 8,46,726 vehicles in the current year as against 7,80,475 vehicles in the previous year.

Sales volume in Farm segment witnessed a growth of 12.2% with sales of 4,20,636 tractors in the current year as against 3,74,955 tractors in the previous year.

Increase in volumes combined with higher realisation led to Revenue from operations growing by 17.1% as compared to the previous year.

Other income during the year ended 31^st March, 2025 at Rs. 1,712 crores is lower than Rs. 1,956 crores earned in the previous year mainly on account of lower fair value gain on certain investments in the current year.

Particulars	FY25		FY24		Increase
	Amount (Rs. crores)	% to Income from Operations	Amount (Rs. crores)	% to Income from Operations	%
Material costs	86,340	72.8	73,995	73.0	16.7
Employee benefits expense	4,881	4.1	4,463	4.4	9.4
Finance costs	250	0.2	140	0.1	78.3
Depreciation, amortisation and impairment expense	4,227	3.6	3,488	3.4	21.2
Loss from investment related to subsidiaries, associates and joint ventures	848	0.7	253	0.2	234.8
Other expenses	8,140	6.9	7,495	7.4	8.6
Total expenses	1,04,686	88.3	89,834	88.6	16.5

EXPENDITURE

The total expenditure during the year as a percentage of income from operations is 88.3% as compared to 88.6% in the previous year. The reduction reflects the cost management initiatives undertaken by the Company.

MATERIAL COST

The material cost as a percentage of income from operations has decreased from 73.0% in the previous year to 72.8% in the current year mainly on account of benign commodity prices and various initiatives taken for management of material cost.

EMPLOYEE BENEFITS EXPENSE

The personnel cost as a percentage of Income from

Operations has decreased from 4.4% in the previous year to 4.1% 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 7.4% in the previous year to 6.9% in the current year mainly on account of stringent cost control measures coupled with 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 increased due to impairment of certain investments in the current year.

DEPRECIATION, AMORTISATION AND IMPAIRMENT EXPENSE

Depreciation, amortisation and impairment expenses as a percentage of income shows marginal increase over the previous year.

FINANCE COSTS

The interest expense as a percentage of income has marginally increased from 0.1% in the previous year to 0.2% in the current year mainly due to unwinding of interest on contractual obligations.

TAX EXPENSE

The provision for current tax and deferred tax for the year ended 31^st March, 2025, as a percentage to profit before tax is 24.3% and is higher than 20.9% in the previous year mainly for certain non-deductible expenses in the current year.

The key financial ratios of the Company are given as below:

Particulars	M&M
	FY25	FY24
Debtors Turnover (times)	22.2	22.6
Inventory Turnover (times)	8.6	8.0
Interest Coverage Ratio (times)	62.0	66.3
Current Ratio (times)	1.49	1.37
Debt Equity Ratio (times)	0.02	0.03
Operating Profit Margin (%)	15.5%	15.0%
Net Profit Margin (%)	10.0%	10.5%
Return on Equity (%)	20.8%	22.3%

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

Debt Equity Ratio (times): The debt equity ratio is at 0.02 in current year as against 0.03 in previous year primarily due to repayment of borrowings and higher profits during the current year.

CONSOLIDATED FINANCIAL POSITION OF THE M&M GROUP

As on 31^st March, 2025, for the purpose of consolidation as per Indian Accounting Standards (Ind AS), the Group comprised of the flagship holding company Mahindra & Mahindra Limited, 122 Subsidiaries, 22 Joint Ventures and 30 Associates.

The Consolidated Income from operations is Rs. 1,59,211 crores in the current year as compared to Rs. 1,39,078 crores in the previous year, registering an increase of 14.5%.

The Consolidated Profit before share of profit of associates and joint ventures and tax for the current year is Rs. 17,542 crores as compared to Rs. 14,856 crores in the previous year, registering an increase of 18.1%. The consolidated profit after tax after non-controlling interest for the year is Rs. 12,929 crores as compared to Rs. 11,269 crores in the previous year, registering an increase of 14.7%.

Tech Mahindra Limited, Flagship Company in the IT Sector, reported a consolidated operating revenue of Rs. 52,988 crores in the current year as compared to Rs. 51,996 crores in the previous year, registering an increase of 1.9% (not consolidated in M&M revenue). Its consolidated profit after tax after non-controlling interests is Rs. 4,252 crores as compared to Rs. 2,358 crores in the previous year, registering an increase of 80.3%.

The Groups finance company, Mahindra & Mahindra Financial Services Limited, a listed subsidiary of the Company (Mahindra Finance), reported a consolidated operating revenue of Rs. 18,463 crores during the current year as compared to Rs. 15,797 crores in the previous year, registering an increase of 16.9%.

The consolidated profit after tax after non-controlling interests for the year is Rs. 2,262 crores as compared to Rs. 1,933 crores in the previous year, registering an increase of 17.0%. The customer base of Mahindra Finance has crossed 11.0 million customers and currently has a network of over 1,365 offices. Mahindra Finance reported closing business AUM of Rs. 1,19,673 crores as of 31^st March 2025, a growth of 16.6%.

Mahindra Lifespace Developers Limited, a listed subsidiary in the business of real estate, reported a consolidated operating revenue of Rs. 372 crores as compared to Rs. 212 crores in the previous year, registering an increase of 75.5%. The consolidated profit after tax after non-controlling interest for the year is Rs. 61 crores as compared to Rs. 98 crores in the previous year, registering a decrease of 37.8%. Residential pre-sales of Rs. 2,804 crores in FY25, reported a growth of 20.4%.

Mahindra Holidays & Resorts India Limited, a listed subsidiary in the business of vacation timeshare, registered a consolidated operating revenue of Rs. 2,781 crores as compared to Rs. 2,705 crores in the previous year, registering an increase of 2.8%. The consolidated profit after tax after non-controlling interests for the year is Rs. 128 crores as compared to Rs. 116 crores in the previous year, registering an increase of 10.3%.

Mahindra Logistics Limited, a listed subsidiary in the logistics business, reported a consolidated operating revenue of Rs. 6,105 crores as compared to Rs. 5,506 crores in the previous year registering an increase of 10.9%. The consolidated loss after tax after non-controlling interests for the year is Rs. 36 crores as compared to Rs. 55 crores in the previous year, registering a decrease of loss of 34.5%.

Swaraj Engines Limited, a listed subsidiary in the business of manufacturing of Diesel Engines and its components, reported operating revenue of Rs. 1,682 crores as compared to Rs. 1,419 crores in the previous year registering an increase of 18.5%. The profit after tax for the year is Rs. 166 crores as compared to Rs. 138 crores in the previous year, registering an increase of 20.3%.

SEGMENT RESULTS AFTER SHARE OF PROFIT/(LOSS) OF ASSOCIATES AND JOINT VENTURES

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

(Rs. crores)

Segments	FY25	FY24
1 Automotive	7,797	6,057
2 Farm Equipment	4,947	4,327
Services:
3 Financial Services	3,002	2,557
4 Industrial Businesses and Consumer Services	2,718	2,259
Total	18,464	15,200

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.