Mumbai: SML Mahindra reported a 2.4 percent year-on-year rise in net profit to Rs 54.2 crore in Q4 FY26, with revenue from operations increasing to Rs 897.7 crore. The company posted a sharp sequential improvement, with profit rising from Rs 17.5 crore in Q3 FY26 and Rs 52.9 crore in Q4 FY25. Revenue also climbed significantly from Rs 539.3 crore in the previous quarter, reflecting strong quarterly momentum.
Strong quarterly performance
SML Mahindra’s Q4 performance showed steady year-on-year growth alongside a sharp sequential rebound. Revenue rose to Rs 897.7 crore compared to Rs 771.4 crore in Q4 FY25, while profit increased to Rs 54.2 crore from Rs 52.9 crore a year earlier. Sequentially, revenue jumped from Rs 539.3 crore in Q3 FY26, while profit more than tripled from Rs 17.5 crore, indicating a strong recovery in operations during the quarter.
Sequential growth accelerates
The company’s sequential performance was driven by a sharp rise in income and improved operating leverage. Total income increased by Rs 259.4 crore quarter-on-quarter (Rs 900.23 crore vs Rs 640.83 crore), while total expenses rose by Rs 210.3 crore. Despite higher costs, profit before tax surged to Rs 72.6 crore from Rs 23.6 crore in Q3, reflecting improved cost absorption. Earnings per share also rose sharply to Rs 37.46 from Rs 12.11 in the previous quarter, mirroring the strong profitability rebound.
Operational drivers
Expense trends indicate higher material consumption at Rs 624.2 crore compared to Rs 496.6 crore in Q3, aligned with increased production and sales activity. Inventory changes also contributed positively at Rs 53.2 crore versus a negative Rs 119.3 crore in Q3, supporting profitability. Finance costs declined year-on-year to Rs 6.99 crore from Rs 8.93 crore, aiding margins, while depreciation remained stable.
Full-year performance
For the full year FY26, revenue from operations stood at Rs 2,837.9 crore compared to Rs 2,399.0 crore in FY25, marking a strong annual increase. Net profit rose to Rs 159.8 crore from Rs 121.7 crore in the previous year. The board has recommended a final dividend of Rs 23.50 per share for FY26.
Disclaimer: This summary is based on audited financial results and is not investment advice.
