SML Mahindra Q2 profit drops 43 pc to Rs 12 crore

Mumbai, Oct 19 (IANS) SML Mahindra Limited on Monday reported a 43 per cent year-on-year (YoY) decline in net profit for the September quarter (Q2 FY27), as margin pressures weighed on earnings despite a robust increase in revenue.

The commercial vehicle manufacturer posted a net profit of Rs 12 crore for the quarter, compared with Rs 21 crore in the corresponding period last financial year (Q2 FY26), according to its stock exchange filing.

Revenue, however, rose 21 per cent year-on-year to Rs 670 crore from Rs 555 crore, as per its filing.

Operating performance remained under pressure during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 31 per cent year-on-year to Rs 29 crore from Rs 42 crore.

Consequently, EBITDA margin contracted by 330 basis points to 4.3 per cent from 7.6 per cent a year earlier.

The company said the proposed acquisition of the truck and bus division of its parent, Mahindra & Mahindra Limited, for Rs 525 crore is expected to be completed on or before January 31, 2027.

The transaction will be executed through a slump sale, a mechanism under which an entire business undertaking is transferred as a going concern rather than through the sale of individual assets. The final consideration may be adjusted based on the working capital position at the time of closing, in line with the terms of the agreement.

SML Mahindra clarified that it has not made any adjustments to its unaudited financial results for the September quarter and the first half of the financial year, as the acquisition is yet to be concluded.

Formerly known as SML Isuzu Limited, the company was renamed SML Mahindra Limited after Mahindra & Mahindra acquired a controlling 58.96 per cent stake in August 2025 from Sumitomo Corporation and Isuzu Motors.

The company, headquartered in Chandigarh, manufactures a range of commercial vehicles including light and medium-duty trucks, buses, ambulances, police personnel carriers and other specialised vehicles from its manufacturing facility in Punjab’s Nawanshahar.

SML Mahindra is also working to strengthen its position in the commercial vehicle segment through the proposed acquisition of Mahindra & Mahindra’s Truck and Bus Division (MTBD) for Rs 525 crore.

The transaction, expected to be completed by January 2027, is aimed at creating a unified commercial vehicle business under the company.

In addition to expanding its product portfolio, SML Mahindra has been undertaking sustainability initiatives, including the adoption of solar power and lower-carbon energy sources such as piped natural gas (PNG) across its operations.

–IANS

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