SML Mahindra Posts Robust 62% Revenue Growth in Q3

SML Mahindra Limited, the Punjab-based commercial vehicle manufacturer, reported a strong performance for the third quarter ended December 31, 2025. Revenue from operations rose to Rs 539.27 crores, a 62.5% jump from Rs 331.80 crores in the same quarter last year. Net profit for the quarter surged to Rs 17.54 crores, up sharply from Rs 0.53 crores in Q3 FY2025.

Profit Before Tax and Earnings Per Share Surge

The company’s profit before tax reached Rs 23.52 crores, compared to Rs 0.75 crores in Q3 FY2025. Basic and diluted earnings per share (EPS) for the quarter stood at Rs 12.11 versus Rs 0.36 in the year-ago period, reflecting a substantial improvement in profitability.

Nine-Month Performance Shows Sustained Momentum

For the nine months ending December 31, 2025, SML Mahindra demonstrated steady growth, with revenue from operations totaling Rs 1,940.27 crores, up 19.2% from Rs 1,627.61 crores in the same period last fiscal year. Net profit for this period reached Rs 105.55 crores, representing a 53.6% increase over Rs 68.72 crores previously. Profit before tax for the nine-month period climbed to Rs 141.35 crores from Rs 91.24 crores. EPS for the nine months rose to Rs 72.93 from Rs 47.48 in the prior year.

Key Cost and Inventory Highlights

The company’s cost of materials consumed increased to Rs 496.57 crores in Q3 from Rs 341.08 crores, reflecting higher production volumes. Employee benefits expense rose to Rs 59.17 crores from Rs 50.41 crores, while finance costs fell to Rs 5.79 crores from Rs 7.10 crores year-on-year.

SML Mahindra also reported favorable inventory changes, with finished goods and work-in-progress inventory reduced by Rs 119.29 crores during the quarter, in line with Rs 121.12 crores in the corresponding quarter last year.

Regulatory Developments to Monitor

Two recent regulatory changes could impact the company in the future. The Government of India notified four Labour Codes in November 2025, consolidating 29 existing labour laws. SML Mahindra has estimated an incremental impact of Rs 0.77 crores on retirement benefits while continuing to monitor further clarifications.

Additionally, the Ministry of Environment, Forest and Climate Change has issued the Environment Protection (End-of-Life Vehicles) Rules, 2025, effective April 1, 2025. These rules introduce Extended Producer Responsibility obligations for vehicle manufacturers. The company stated it is currently unable to reliably quantify the potential financial impact, pending detailed operational guidelines.

Outlook

With strong quarterly and nine-month performance, SML Mahindra appears well-positioned to sustain growth amid higher production volumes and cost efficiencies. Regulatory developments and evolving environmental compliance requirements are likely to shape future strategies for the company in FY26 and beyond.