SML Mahindra Q1 profit falls 5% as EBITDA declines and margins narrow

Mahindra Group entity SML Mahindra Ltd on Monday (July 20) reported a 5.1% year-on-year decline in net profit to ₹64 crore for the first quarter, compared with ₹67 crore in the corresponding period last year.

The company’s revenue increased 13.2% year-on-year to ₹957 crore from ₹846 crore in Q1 of the previous financial year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 4.7% to ₹100.1 crore from ₹105 crore in the year-ago quarter. The company’s EBITDA margin stood at 10.5% in the June quarter, compared with 12.4% in the corresponding period last year.

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This month, SML Mahindra had reported an increase in its commercial vehicle production and sales for June 2026, while exports declined compared with the year-ago period, according to the company's monthly operational update.

The company produced 1,587 commercial vehicles in June 2026, up from 1,546 units in June 2025, while sales rose to 1,896 units from 1,807 units a year earlier. Exports, however, fell to 34 units in June 2026 from 64 units in the corresponding month last year.

The stock currently trades at a trailing price-to-earnings (P/E) ratio of 36.93 based on its latest full-year earnings per share (EPS) of ₹110.40. Also, the stock has seen a slight decline so far this year.

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Starting 2026 at ₹4,091.90, the stock experienced a significant rally in mid-February, peaking over ₹5,138. However, it subsequently corrected and currently trades at ₹3,960.30, representing a year-to-date loss of approximately 3.22%.

Shares of SML Mahindra Ltd ended at ₹3,960.30, down by ₹116.25, or 2.85%, on the BSE.

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