As major carmakers release auto sales data for May, Mahindra and Mahindra Chief Executive Officer of Automotive Division Nalinikanth Gollagunta flagged manpower shortages that have been impacting some of its supplies.
Speaking to NDTV Profit, Gollagunta said: "Some of our Tier 2 suppliers who will be supplying certain specific parts for us have had some manpower challenges. A few reasons for it of course some of that could be driven by West Asia at the beginning in March but then after the elections came up as well," adding, "It is stifling a little bit of the supplies."
"The demand continues to be robust and we are hoping that in the next few weeks we will be able to iron out these labour shortages challenges as well and by the end of this month, you should ideally start to see the numbers come back up again from a production perspective," he said.
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For the month of May, M&M total sales stood at 99,636 units, up 20% year-on-year, driven by strong performance across segments. The automaker reported better-than-expected numbers in the tractor vertical, with sales at 49,695 units beating estimates of 41,800 units. Domestic tractor sales rose 23% to 47,845 units, while exports surged 7% to 1,850 units.
In Q4FY26, M&M reported a 53% surge in standalone net profit to Rs 3,737 crore, compared to Rs 2,437 crore in the corresponding period last year. Along with the results, the M&M board also recommended a final dividend of Rs 33 per ordinary equity share of face value Rs 5 each for FY26.
The revenue from operations during the fourth quarter of FY26 came in at Rs 39,601 crore, up 25.3% from Rs 31,609 crore recorded in the corresponding quarter of the previous financial year. M&M's earnings before interest, taxes, depreciation, and amortization rose 18% to Rs 5,564 crore compared to Rs 4,682 crore in the same period last year. EBITDA margin stood at 14.1% compared to 14.9% YoY.
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