M&M Share Price Surges: Announces Bumper Dividend, Strong Q4 Results & Bold Future Plans – Key Insights for Shareholders

Mahindra & Mahindra shares rallied after reporting strong Q4FY25 results with a 24% jump in revenue and 22% rise in profit. The company announced a ₹25.30 dividend per share, maintained EV leadership, and acquired a majority stake in SML Isuzu, marking its expansion into the truck and bus segment.

As of 12:55 PM on May 5, 2025, Indian markets were trading in the green. The Nifty 50 index was up by 0.51%, while the Sensex rose 0.42%. Most sectoral indices also witnessed gains, with the Nifty Auto index standing out, advancing 1.7%.

Among the top performers in the Nifty Auto space was Mahindra & Mahindra (M&M). The company's share price climbed 3.77%, crossing the ₹3,000 mark, and touching a fresh two-month high.

What’s Driving M&M’s Rally?

The recent uptrend in M&M’s stock price is largely attributed to its strong performance in Q4FY25. On a standalone basis, the company’s revenue increased by 24% year-on-year (YoY) to ₹31,609 crore, compared to ₹25,434 crore in Q4FY24. Net profit also rose 22% YoY, reaching ₹2,437 crore, up from ₹2,000 crore in the same quarter last year.

M&M Dividend Announcement and Record Date

The company also announced a dividend of ₹25.30 per equity share (506%) on shares with a face value of ₹5 each. The record date for the dividend has been set as Friday, July 4, 2025

From a business standpoint, M&M is thriving:

• It remains the number one SUV player in India, with a 20% volume share.
• The company has a strong order pipeline for battery electric vehicles (BEVs), and deliveries have already commenced.
• With disciplined execution, M&M has achieved its highest-ever profit margins.

In the electric vehicle (EV) space, M&M holds the highest revenue market share in both the E-SUV and E-PV segments during the January–March 2025 quarter. Moreover, it commands a 42.9% share in the electric three-wheeler (E3W) segment, with volume growing 4.5 times over the past three years.

M&M's Acquisition of SML Isuzu Ltd.

After establishing leadership in SUVs, Mahindra & Mahindra is now setting its sights on the truck and bus segment. The company has announced its decision to acquire a majority stake in SML Isuzu Ltd. through a deal valued at ₹555 crore, aimed at strengthening its position in the large commercial vehicle space.

According to an exchange filing on Saturday:

• M&M will acquire a 43.96% stake (equivalent to 63,62,306 shares) from promoter Sumitomo Corp.
• Additionally, it will acquire a 15% stake (or 21,70,747 shares) from Isuzu Motors Ltd.

As per Indian market regulations, M&M will also initiate an open offer to acquire an additional 26% stake (amounting to 37,62,628 shares) at a price of ₹1,554.60 per share.

Following the completion of this transaction, SML Isuzu Ltd. will become a listed subsidiary of Mahindra & Mahindra. Notably, the ‘Isuzu’ brand name will be dropped, reflecting the company’s full integration into the M&M group.

Disclaimer: The article is for informational purposes only and not investment advice.