185 STATUTORY REPORTS | Management Discussion and Analysis Finance Costs The interest expense as a percentage of income from operations remained unchanged at 0.2% in the current year as compared to the previous year. Tax Expense The provision for current tax and deferred tax for the year ended 31st March 2026, as a percentage to profit before tax is 24.1% is lower than 24.3% in the previous year. The key financial ratios of the Company are given as below: Explanation for variation of 25% or more in Key Financial Ratios: • Debt Equity Ratio (times): The debt equity ratio is at 0.01 in current year as against 0.02 in previous year, primarily due to repayment of borrowings and higher equity base. • Interest Coverage Ratio (times): The interest coverage ratio is at 77.8 in current year as against 62.0 in previous year primarily due to higher Operating Profits (Profit before interest, depreciation, amortisation, impairments, loss from investments related to subsidiaries, associates and joint ventures, exceptional items and tax) during the current year. Consolidated Financial Position of The M&M Group As on 31st March 2026, for the purpose of consolidation as per Indian Accounting Standards (‘Ind AS’), the Group comprised of the flagship holding Company Mahindra & Mahindra Limited, 128 Subsidiaries, 20 Joint Ventures and 29 Associates. The consolidated income from operations is Rs. 1,98,639 crore in the current year as compared to Rs. 1,59,211 crore in the previous year, registering an increase of 24.8%. The consolidated profit before exceptional items, share of profit of associates and joint ventures and tax for the current year is Rs. 23,513 crore as compared to Rs. 17,542 crore in the previous year, registering an increase of 34.0%. The consolidated profit after tax after non-controlling interest and exceptional items for the year is Rs. 17,099 crore as compared to Rs. 12,929 crore in the previous year, registering an increase of 32.3%. Tech Mahindra Limited, flagship company of the Mahindra Group in the IT Sector, reported a consolidated operating revenue of Rs. 56,815 crore in the current year as compared to Rs. 52,988 crore in the previous year, registering an increase of 7.2% (not consolidated in M&M revenue). Its consolidated profit after tax after non-controlling interests is Rs. 4,811 crore as compared to Rs. 4,252 crore in the previous year, registering an increase of 13.1%. Particulars Debtors Turnover (times) Inventory Turnover (times) Interest Coverage Ratio (times) Current Ratio (times) Debt Equity Ratio (times) Operating Profit Margin (%) Net Profit Margin (%) Return on Equity (%) FY26 23.4 10.7 77.8 1.5 0.01 15.2% 10.6% 23.0% FY25 22.2 8.6 62.0 1.5 0.02 15.5% 10.0% 20.8% M&M
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