Mahindra Group Targets USD 2-3 Billion Valuation for Growth Gems

New Delhi, May 5 (PTI) Riding high on clocking consolidated profit after tax of Rs 14,073.17 crore in FY25, Mahindra Group has set valuation targets of USD 2-3 billion for its 'scalable growth gems', including logistics, hospitality, real estate and last mile mobility, according to its top officials

The group, which had a cash generation of Rs 10,000 crore in 2024-25 is confident that this will enable it to fuel growth of these businesses.

Speaking at the company's Q4 FY25 earnings announcement, Mahindra Group MD & CEO Anish Shah said M&M is actively identifying and nurturing businesses with strong potential to deliver both scale and competitive strength in the coming years.

"These are companies with a strong strategic advantage in their industries. We are now categorising them as scalable growth gems with valuation targets of USD 2-3 billion, and emerging growth gems on track to reach USD 1 billion valuations. The goal is to move them up the curve in scale and competitiveness."

As per the company, its scalable growth gems include logistics, hospitality, real estate, last-mile mobility, Susten, and trucks and buses.

On the other hand, M&M has set valuation targets of USD 1 billion for its 'emerging growth gems' such as Accelo, Aerostructure, Classic Legends and Car & Bike.

M&M Ltd Group Chief Financial Officer, Amarjyoti Barua said, "Almost Rs 10,000 crore of cash was generated during the year (FY25) and it has not come from any one-offs or anything like that. It's pure operating performance..."

He said the group has "performed exceedingly well on cash generation" which allows it to take a "lot of bold steps" to fuel the growth plans for our (growth) gems, as well as any other strategic investments we want to do, including the SML Isuzu acquisition..."

For the fiscal ended March 31, 2025, M&M's consolidated profit after tax was at Rs 14,073.17 crore as compared to Rs 12,269.82 crore in the corresponding period a year ago, the company said.

Consolidated revenue in FY25 stood at Rs 1,58,749.75 crore as compared to Rs 1,38,279.30 crore in FY24, it added.