SML Isuzu Q1FY26 PAT Surges 44% YoY to ₹66.96 Cr; Revenue Jumps 13.4%

Chandigarh, July 22, 2025 – SML Isuzu Ltd (BSE: 505192 | NSE: SMLISUZU) today announced strong Q1FY26 results on July 22, 2025, reflecting robust operational performance and strategic tailwinds. The update comes shortly after regulatory clearance for Mahindra & Mahindra’s acquisition, reinforcing market focus on the company’s earnings and ownership transition.

The results showed double-digit growth in revenue and profit, backed by demand recovery in the commercial vehicle segment and improved cost control. Operating leverage and efficient resource allocation drove margin expansion, while stable governance and audit clarity added to overall investor confidence.

Stock Performance Today

As of market close on July 22, 2025, the stock ended at ₹3,330.10, down 0.60% from its previous close of ₹3,350.10. It moved between an intraday high of ₹3,397.80 and a low of ₹3,220.00. Traded volume stood at 1.84 lakh shares with a turnover of ₹198.78 crore.

Key Financial Highlights

For the quarter ended June 2025, the company reported revenue from operations at ₹845.89 crore, up 13.4% YoY and 9.7% QoQ, indicating strong demand recovery in the commercial vehicle segment. Total income stood at ₹847.95 crore, compared to ₹773.10 crore in the previous quarter.

Profit before tax rose to ₹89.55 crore, improving from ₹71.14 crore in Q4FY25 and ₹61.96 crore in Q1FY25, driven by better operating leverage. Net profit grew 26.5% sequentially to ₹66.96 crore, a 44.3% jump over last year’s ₹46.39 crore. The improvement was aided by cost control and efficient resource use.

Earnings per share (EPS) for the quarter came in at ₹46.27, compared to ₹36.60 in Q4 and ₹32.06 a year ago. This consistent expansion in earnings performance reflects a positive trend in core business profitability.

Regulatory & Transaction Update

On April 26, 2025, Sumitomo Corporation and Isuzu Motors entered into definitive share purchase agreements with Mahindra & Mahindra Ltd (the Acquirer), to divest a total of 85,33,053 equity shares, representing 58.96% of SML Isuzu’s paid-up share capital. This included:

• 43.96% from Sumitomo Corporation (63,62,306 shares)
• 15.00% from Isuzu Motors (21,70,747 shares)

The deal was priced at ₹650 per share. Subsequently, an Open Offer was launched by Mahindra on May 5, 2025, for acquiring up to 26% additional stake at a much higher price of ₹1,554.60 per share. The Competition Commission of India (CCI) granted unconditional approval for this transaction on June 17, 2025.

Audit Review

The Limited Review Report by Walker Chandiok & Co LLP, dated July 22, 2025, stated that the financial results comply with Ind AS 34 and SEBI’s Listing Regulations. The auditors did not express any qualification or concern and confirmed no material misstatements were identified.

Management Commentary

Yasushi Nishikawa, Managing Director & CEO, signed off on the results and reiterated that the company remains focused on operational resilience and future strategic alignment with Mahindra’s platform post the acquisition.

Segment & Governance Notes

• SML Isuzu continues to operate as a single segment entity, focused on the manufacture of commercial vehicles and related components.
• Anonymous complaints regarding employee-dealer relationships were investigated. An external review and sub-committee found no evidence of financial impropriety, ruling out any impact on reported financials.

Outlook

The earnings surge and regulatory clarity around Mahindra’s acquisition have sharpened focus on SML Isuzu’s transition path. The market is assessing execution risks and integration benefits. Sustained profitability and alignment with Mahindra’s commercial vehicle strategy will be critical to maintain investor interest.

About the Company

SML Isuzu Ltd is a listed manufacturer of commercial vehicles based in Nawanshahr, Punjab. The company’s shares are listed on BSE and NSE under the symbols 505192 and SMLISUZU, respectively. It has a longstanding history in light and medium commercial vehicle manufacturing, with strategic partnerships and a growing domestic footprint.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/9cdf8827-7ea2-4ece-8f3d-b4c6a5e3ed0b.pdf

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