NIFTY’s Auto Giant Races Ahead: Stock Surges Over 4 Per Cent After Strong Sales Numbers
February auto sales hit 83,702 units, up 15 per cent; SUV sales climb 19 per cent, exports almost double
The Indian stock market saw a strong performance from the auto sector on Monday, with Mahindra & Mahindra Ltd making headlines after reporting impressive sales figures for February 2025. The stock of this auto major surged over 4.29 per cent, reaching a high of Rs 2,695.95 during the trading session. The company’s strong sales performance across various segments contributed to the positive sentiment among investors.
The automobile manufacturer reported total vehicle sales of 83,702 units in February, marking a 15 per cent increase compared to the 72,923 units sold in February of the previous year. The company’s Utility Vehicles (UV) segment played a crucial role in this growth, with domestic sales rising 19 per cent to 50,420 units compared to 42,401 units in the same month last year. When considering exports, total UV sales stood at 52,386 units. The overall strong demand for SUVs continues to drive the company's market performance.
One of the most notable highlights of the company’s latest report was its robust export growth. The company’s exports nearly doubled, soaring by 99 per cent to 3,061 units in February, compared to just 1,539 units in February 2024. This significant jump in exports showcases the increasing global demand for its vehicles.
In the commercial vehicle segment, domestic sales stood at 23,826 units, further strengthening the company’s position in the auto market. The growth momentum was not just limited to automobiles; the company's tractor division also reported solid numbers. In the farm equipment segment, total tractor sales in February increased by 18 per cent year-on-year (YoY) to 25,527 units from 21,672 units. Domestic tractor sales rose 19 per cent YoY to 23,880 units, while tractor exports saw a 6 per cent YoY increase, reaching 1,647 units.
Commenting on the Mahindra and Mahindra’s performance, a senior executive stated, “February was another strong month for us, with our SUV sales reaching 50,420 units, reflecting a growth of 19 per cent. Overall, total sales of 83,702 vehicles, a rise of 15 per cent, further highlight the sustained demand for our portfolio.” The company’s top management also expressed optimism about the continued growth in the tractor segment, citing favorable weather conditions, a strong Rabi crop outlook, and government initiatives supporting the agriculture sector.
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The company's financial performance has also been robust, with its earnings report for the third quarter of the financial year revealing a 21 per cent surge in net profit to Rs 2,964 crore compared to Rs 2,454 crore in the corresponding period last year. Revenue for the quarter rose 19.6 per cent to Rs 30,538 crore, while Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) jumped 35.5 per cent to Rs 4,384 crore.
With strong sales across both the passenger and farm equipment segments, the company has demonstrated resilience and solid market positioning. While the auto sector faced a brief downturn last week, Monday’s trading session saw renewed investor confidence, pushing the sectoral index up by nearly 2 per cent.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.