Mahindra & Mahindra Shares Drop 4.84% Despite Record Bookings for New Electric Models

Mahindra & Mahindra (M&M) share price experienced a decline of 4.84% on Monday, February 17, closing at ₹2,955 apiece.

This drop came despite the company’s announcement on Friday that it had secured 30,179 bookings for its two new electric models—XEV 9e and BE 6.

The booking figure translates to a total value of ₹8,472 crore at ex-showroom prices, sparking concern among investors despite strong demand for electric vehicles.

Record Bookings for XEV 9e and BE 6

The Mumbai-based auto giant revealed that bookings for the new electric vehicles commenced on Friday, and the demand surpassed expectations.

In a tweet, Mahindra Group Chairman Anand Mahindra celebrated the success of the launch, calling the 30,179 bookings a new record for the EV category. The split between the two models was revealed to be 56% for the XEV 9e and 44% for the BE 6.

Notably, the top-end Pack Three variant, featuring a 79 kWh battery, accounted for 73% of the total bookings across both models.

The XEV 9e and BE 6 are priced between ₹18.9 lakh and ₹30.5 lakh (ex-showroom). Electric passenger vehicle sales in India stood at around 1 lakh units last year, indicating that Mahindra is well-positioned to capture a significant share of this growing market.

M&M’s Q3 FY25 Financial Performance

In addition to the electric vehicle news, Mahindra & Mahindra reported strong financial results for the December quarter. The company posted a 20% year-on-year increase in consolidated profit after tax (PAT), which reached ₹3,181 crore, up from ₹2,658 crore in Q3 FY24. This growth was driven by solid performance in both the automotive and farm sectors.

Revenue for the quarter grew by 17% year-on-year, rising to ₹41,470 crore from ₹35,299 crore in the same period last year.

The auto segment saw a 16% increase in quarterly volumes, with 245,000 vehicles sold. Of these, 142,000 were utility vehicles (UVs). Auto segment revenue for the December quarter was ₹23,391 crore, reflecting a 21% growth compared to the previous year.

Strong Performance Across Key Segments

Anish Shah, Managing Director & CEO of M&M, highlighted the strength of the company’s execution across key sectors. The auto and farm divisions showed solid market share growth and improved margins. Shah also pointed to the ongoing transformation at Tech Mahindra, which continues to gain momentum.

He further noted that Mahindra Financial Services (MMFSL) has effectively balanced asset quality with growth priorities, maintaining a Gross Stage (GS) under 4% while experiencing strong growth in assets under management (AUM).

Despite the drop in share prices, M&M’s overall performance in Q3 FY25 showcases its resilience and strategic execution across various business units.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.