SML Mahindra Q4 – FY26 Results Analysis

key financial highlights

• Revenue from Operations:
  • Total Income (Q4 FY26): ₹897.65 crore
    • QoQ Change: +66.46%
    • YoY Change: +16.37%
  • Previous Quarter (Q3 FY26): ₹539.27 crore
  • Previous Year (Q4 FY25): ₹771.38 crore
• Strong growth
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹54.20 crore
    • QoQ Growth: +209.01%
    • YoY Growth: +2.36%
  • Previous Quarter: ₹17.54 crore
  • Previous Year: ₹52.95 crore

Margin Analysis

Positives

• Revenue growth outpaced expense growth
• Operating leverage improved
• Finance costs declined YoY
• Inventory dynamics supported profitability

Key Signal: Margins improved materially

Earning quality check

Strong Earnings Quality

• Profit growth appears operationally driven

Supported by:

• Revenue growth
• Controlled costs
• Lower finance costs
• Positive operating cash generation

Interpretation:

High-quality earnings

balance sheet Insight

Major positive signal from:

• Equity growth
• Debt reduction
• Balance sheet strengthening

Cash flow analysis

Operating Cash Flow

• ₹156.13 crore
• Interpretation:
  • Growth: +101.56% from (From ₹877.46 crore)

Investing Cash Flow

• Negative ₹65.83 crore outflow
• Reflects:
  • Normal

Financing Cash Flow

• Negative ₹88.95 crore
• Reflects:
  • Debt repayment
  • Dividend payout

Cash Position

• Cash increased:
  • FY26: ₹4.51 crore
  • FY25: ₹3.10 crore

Indicates: Improved Liquidity

key risks

• Commercial vehicle demand remains cyclical
• Commodity and input costs remain risks
• Inventories remain elevated

management strategy signals

• Growth recovery
• Cost optimization
• Balance sheet repair
• Controlled capex
• Deleveraging

Financial Metrics

Quarterly Performance Context