Let me then move to the key messages from our results this quarter. It was a very strong quarter Overall, we've had a number of strong quarters for some time now, but I would look at this as amongst the strongest. Consolidated profit after tax is up 24 and ROE is north of 20% for the first time, 20.6%. But as I've always maintained, our target for ROE is 18%, we may go slightly higher or slightly lower from time to time. And that's what we will stay with.
All our businesses have driven this performance, and that's what you will see through some of the numbers we'll share. Starting with auto and farm, significant market share expansions for SUVs. The volume for SUVs is up 22% and revenue market share is at 27.3%, up five seventy basis points. Tractor volumes up 10%, a 50 basis point market share gain to 45.2%, very significant, especially in the 40s, every basis point is valuable and our team has shown remarkable growth in a tough market overall. And it's not just about growth, margins are very strong as well.
With auto continuing at a 10% margin excluding electric SUVs as Rajesh will explain in detail. And farm, PBIT margin is 19.8%. As we move to Tech and Mahindra Finance, what we see there is again very strong progress. Tech Mahindra has its EBIT margin recovery on track at 11.1% this quarter with an F27 target of 15%. Why the finance continues to focus on asset quality at 3.8% is well within the thresholds that the business has set.
Assets under management are up 15%. And while disbursement was a little slower, given the environment that we've been in, this is exactly the path that we want to be on. And the business has shown very strong performance. What And you will also see in our numbers is the momentum for growth JEPS continues at a very rapid pace. And what we are seeing in our overall result of a 24% growth in consolidated PAT and therefore in EPS, you will see all the businesses coming together to contribute to that.
Key highlights, revenue up 22% at the consolidated level, profit after tax up 24% to INR4083 crores. In auto, we talked about the SCV volume. The CV volumes up 4% in a very tough market. And what we would highlight there is profit after tax for auto is up 32% this quarter. Palm has seen market share gains as I mentioned, margin expansion and international subsidiaries have been a drag this quarter because of specific write downs that were taken and that results in a profit after tax of 7% growth quarter year over year for the same quarter.
As we look at the key drivers of this performance, overall, auto and farm continuing to capitalize market leadership, profit up 20%, Tech Mahindra up significantly from last year, Mahindra Finance up 6%, good solid performance right now. And growth gems also up significantly. The growth gems more than profits, we look at the underlying momentum for growth, which is very strong. Lightspaces or MLDL has acquired INR3.5000 crores of GDV. Sustem has commissioned 70 megawatts and Exelo has seen very strong growth in revenue as well as in profitability.
The headlines for wider finance are reasonable growth, but more importantly, sharp focus on asset quality that continues, very strong controls. We've initiated a specific project to strengthen that further, a high focus on technology and related to that customer experience. And all of this is what we had talked about. We are the final stages of most of that. And once we've done that, then we pivot to growth.
And that puts the business on a much stronger footing and continue to diversify, which is also the next step for the business. Tech Mahindra has seen some deal with momentum led by telecom and financial services. The transition from a delivery standpoint has gone well. And that has been reflected now with strong customer feedback as we see in our NPS scores. And I spoke about margin earlier, the recovery plan is working well.
And therefore you see both of these businesses contributing well to the path forward and the overall results for the group. Logistics, we've seen multiple deal closures with Hemant coming in as CEO. We are seeing his experience coming to bear in the logistics business. And a number of partnerships have been signed up and we're seeing a much stronger momentum for the business. Hospitality, again, very strong numbers and we're looking at delivering a lot more.
It's a business with tremendous potential and one that we feel will do much more to harness that potential. Real estate, you will see some variation at times in pre sales quarter to quarter because that's the nature of the game, as well as in PAT. So you see a slightly decline, 56% decline in pre sales, a 4x increase in PAT, but that will be driven by one offs. More importantly, the underlying trend is very strong and we are going on plan for a 14x growth in presales this decade. And that is also being supplemented by INR 3,500 crores of GDV that's acquired that I had mentioned earlier.
So in summary, a slide that you're familiar with and the new bar that's added to the slide continues that trend with ROE at 20.6% and EPS for the quarter at INR36.4, a significant jump or growth from first quarter last year. With that, I'd like to invite Rajesh to tell us more about everything going on in auto FFAR.
Thank you, Anish.
Want to start with the farm equipment business. And we've seen a very healthy growth in volumes in the context of the tractor market 10%. But most importantly, we've got to our highest ever quarter market share, which is 45.2, which is a gain of 50 basis points over the same period last year. So the momentum that we're seeing in the tractor business continues on with both the brands doing really well, both the Mahindra and the Swaraj brand. This graph captures the trend line, where we've seen an upward trajectory on an ongoing basis.
The farm machinery business continues to show good growth and we had INR300 crore plus quarter, literally INR100 crore per month with the rotavators doing very well again in market share at 25%. And this was our highest ever single quarter revenue, the farm machinery business. The margins you see on the left is what is the farm standalone margin, which is at 19.8%, healthy growth over the same quarter last year. On the right, you see the core tractor PBI 80% margin, which is really the tractor business domestic plus exports, does not include farm machinery, not include power oil and so on. And that has again seen a very healthy margin 20.7%.
This is the graph we have been using to show you the ability of the business to manage margins within a band irrespective of whether the industry is in an up cycle or a down cycle. And we again have seen a very strong healthy margin performance in the context of a 9.2% industry growth. This is the farm consolidated number. And, know, you're seeing a 12% revenue growth and FPBIT growth of sales. A very large chunk of this, you know, is impacted by its impairment, as you see at the bottom of the slide that we took on the Sampo business in Finland, that's the harvester business.
And if we had not taken that, we would have probably seen the PBIT growth at about 80. Moving to auto, very strong growth. Most of you are tracking that the industry growth has been not so strong. And we have continued to deliver in that environment, 22% growth in volume. The LCD business has seen 4% growth.
This category is not seeing the industry momentum that we would like to see. We've gained share in both. So you see the revenue market share up five seventy basis points, the volume market share in LCV to the level now of 54.3. This captures the movement of SU's revenue market share of time. And, this is a chart you're seeing for the first time.
So I'll spend a minute with Lynette. The red line represents our penetration. That means our electric SUVs as a percentage of our total SUVs. The black line represents that for the industry. So, what we are seeing now is our SUV, electric SUV penetration is close to 8%.
You can see over the last two quarters, the pace at which penetration is moving up. On the right side, you see the eSUV volume market share and that has been at a healthy 31 as we've just forecast the performance. I guess, we both of which have a very good response in the market. This captures JATRO data, captures the revenue market is a very strong 44.3% as a percentage of electric SUVs and 40.9 as a percent of electric passenger vehicles. That means take passenger vehicles as SUV plus cars together.
The LCV, we just spoke about the fact that the industry is in a slow growth phase and our market share continues to be strong and robust. The auto margins have been strong. The auto standalone PBAT percentage is at 10%, which we believe is a very strong performance in the current environment. We'll explain this a little bit more in detail, so that you get a granular understanding of this. So the auto standalone as reported is a function of two things.
The auto standalone number, which you just saw on the previous slide, and the margin, that we make on the electric SUVs manufacturing contract. So we M and M Limited makes vehicles on our contract manufacturing conversion cost for Mahindra Electric Automotive, the separate legal entity. The margin there is only on the conversion cost. You can see that on a revenue of 2,800 crores, the PBIT there is only 7 crores because that is a conversion cost margin only. And that drops the 10% to 8.9%.
The 10, which is the core business in which we play as we call it auto standalone continues to be at a very healthy EBIT margin level. The bond electric business has delivered a very strong end to end performance of 111 crores as an end to end EBIT, sorry. And as a standalone company, MEAL had an EBITDA of 90 crores. And as you just saw, the rest of the EBITDA comes out of contract manufacturing, which is 21 crores. So that together creates EBITDA.
The last mile mobility, we continue our leadership, category penetration continues to be at a strong level is now at 28% and the business seen a growth of 20%. These are the auto consolidated numbers. So revenue of 31%, PBIT growth of 15%. This of course, the growth percentages represent the fact that electric vehicles, SUVs are part of the rail and are part of the PBIT and we did see that we are losing money at a PBIT level because of depreciation on electric vehicles. With that, I'll hand over to Aman. Thank you.
I'll just start over, start with two things first before I sum up the financials. One of course is, like Anish mentioned, it was a tough day for us. And as a finance professional, it was even tougher because Mr. Manoharan really was somebody who guided a lot of finance professionals. I personally benefited a lot from my interactions with him in the audit committee, and it is a big loss for the company.
Resulting from that is the format of the earnings call that you see today. So this is not going to be the way we operate in the future. We'll go back to our normal routine from subsequent quarters. Just to then sum up the quarter, you already heard about the numbers. I just hit some highlights.
At a consolidated basis, auto had a 31% growth, palm had 12% growth, financial services had 16% growth and out of the growth gems, two notable callouts, Accelo that Anish talked about 34% growth and even Mangro Logistics had 14% growth. So pretty broad based growth across the group. On the PAC side, again, auto was a standout with 32% growth. You will ask why PBIT was 11 and PAC is so much higher. It's primarily driven by the cash generated by auto.
It helps generate a lot of surplus fund income, which is what helps auto path be so much higher. And then from a farm standpoint, we did see the depression because of the sample impairment, which gave it a 6% year over year. The other call out was Tech M, which was up 34% year over year at a consolidated level. This is the bridge which explains that walk. You can see there is a significant contribution from auto muted by what we had to do at Sampo.
I do want to emphasize that what the Sampo run rate of impairment is not going to carry into future quarters. These were the two large. We had to take an impairment in the fourth quarter, and we have had to write down assets in the first quarter in anticipation of certain actions that we are taking. And this should be the end of anything major coming out of Sambo. And then if you look at the services side, that had a significant contribution by biotech.
On a standalone basis, again, Rajesh talked a lot about that great performance from auto inform, which has resulted in that 32% bad growth. I do want to while we have no charts here, I do want to talk about cash very quickly. This was again a very strong cash generation quarter. As you would recall, we had announced two rights issues. We have infused close to INR2500 crores into two of our subs.
Despite that, our cash balance actually grew quarter over quarter, thanks largely to the very strong cash generation from AFS. With that, we'll open it up for Q and A.
Thank you everyone for joining us online and as we're getting the questions so we'll kick start the Q and A. The first question is from Nandini Sengupta from TOI. Her question is about sentiment pickup better in rural India than
in urban in FY 2026 so far. Yes, rural sentiment is better and we are seeing that in our tractor business. Urban continues to be weak. There are multiple reasons for that, but the fundamentals are strong. So on balance, I do believe that even everything that we've seen with regard to rate cuts, greater liquidity and the overall sentiment being weaker will likely turn around.
We've had a good point. So again, matters for rural but for urban. Our sense is we would likely see some sentiment turnaround in us getting back to a stronger growth. But at this point, it is weaker. Let me have Rajesh just comment on it as well in terms of what he's seeing specifically in the auto business in urban area.
Yes, Anandini, we do and I mean, everyone's picking up that there is an open slowdown. It is quite tangible at this point of time. We do know that sentiment, like Anish said, I think the fundamentals are all in place. The sentiment is probably what's coming in the way and seen at times that as festivals start coming in, there is a turn in sentiment and we're hoping that the industry now will start picking up towards the August as the festival seasons get started in some parts of the country and then September with the Nirvana.
So Raj from Financial Express has asked what is the update and how are we placed as in Mahindra placed with regards to rare earth magnets inventory across segments and have we decided the location investment and proposed new plan that we had talked about last time? What is the current capacity our factories are working?
Not sure I am this the third question. Third question has nothing to do
with the railroads. It's a new plant for capacity. It's nothing to do with the railroads.
Yes, do so. Hi, Suraj. So we are comfortably covered on the railroads, the magnet issue as we've shared earlier. We have no disruption in production because of that. We've taken a series of actions.
Some of it has been around inventory, but we are covered comfortably at least for these two parts, the coming quarter and the next one, and mostly covered everything for even the fourth quarter of the year. We've taken a variety of actions, substituting the rare earth with light earth. We looked at ferrites. So multiple sets of actions have been taken to re risk ourselves. And at this time, we feel comfortable that that's on the second question?
Yes, it was under a plant. The second question is about your proposed investment in a new plant.
Okay. Again that's nothing to do with there.
Totally. Yeah.
So Suraj, where we are on that is we had said that for the new upcoming platform, we will expand the capacity within Chapman. That's on way. And you will hear a little bit more about what that team platform is very soon on fifteenth August. We have actually been able to pull out more out of the Chapman plant than what we thought. And hence, while we will, we are exploring the greenfield as an avenue to make us completely future ready.
We still have not zeroed in on the site, and that we will do over the next few months. So we don't have an urgency at the moment, given that we will be able to handle production capacity increase within Jaka for the new platform that is getting created. The capacity utilization, I think you see our numbers right now. We have a nice capacity of roughly 55,000. We are in the mid-40s.
So roughly about 80% or so is our capacity utilization. And it's about the same for electric vehicles where we are 70%. And this time we are ramping up to a level of about 4,000, which will go up as we come closer to the festivals.
A couple of questions from the analysts as well, couple from Nomura, questions are as follows. Congratulations on strong quarter once again, demand environment is tougher than expected, is there a risk to SUV growth guidance and well I'll take the second one as well. What is driving the EV profitability improvement? What will be the further margin drivers for electric vehicles? What's the status update for PLI so well?
A couple of requests to answer the question. What we've been able to demonstrate so far is the ability to manage the risk and be able to deliver what we've committed. So that is our hope at this point as well. And that's something that we do feel very strongly about. So with that, Rajesh.
So a couple of the question is a totally valid question by way of the risk to the SUV growth guidance that we put out. We stay with our number. So we stay with the mid to high teens as a growth percentage. We believe that we will achieve this because we have two new electric SUVs, two more which will come in the part of 2026. And we have, you know, done minor wear and refreshes, if you may call it that.
For example, on three x, so we've done the Rev X two versions, which have got off to a very good start. We've done a couple of new versions with upgrades at this point of time on Scorpio in. And other similar tactical actions are expected over the next few months. We do have a aggressive launch calendar for 2026. And some of that may spill over into the early part of 2026, which affects the financial year f '26.
So we do feel comfortable at this point of time with the state of the current economy as it is to be on our guidance of mid to high SUV. Of course, if there's a big deterioration in that economic environment over what it is now, that's a different story. But the way things are, we stay with our guidance. On the electric SUV, I just want to clarify that we have not accrued any PLI at this point of time in the numbers that you saw. So the EBITDA that has been shown here is without accruing any EBITDA or any PLI benefit.
We have qualified as we said earlier for the XEV90 PLI from a point of view of meeting the DVA. We are waiting for the final technical audit certification, which should come in quarter two. Once that comes in, at whichever time, either quarter two or early quarter three, we will accrue the PLI for the XEV90, which will be a combination of cumulatively from the time, close to from the time that we launch. The B6 PLI is something that we will hope to apply for in quarter four of the year and accrue it subsequent to the application, which takes roughly two to three months. So that's where we are on the PLA.
What has enabled us to deliver this financial performance on the electric SUVs, I think are the following. One, right now, have sold only the higher end versions. As you know, over the next few months, the mix will include lower end versions. It will, of course, be a little dilutive compared to what just selling the top end versions is about. Secondly, I think we have the benefit of having leveraging existing assets of M and M.
And that's, think, very, very important point we must underscore every time we have this conversation. And that's a huge competitive advantage that's available. We are using existing manufacturing facilities except a few shops, some of you have seen it in Chakra. And that helps us keep overall fixed costs at a low level, and is helping us deliver a reasonable financial performance.
You've heard it well. Thank you.
Just one other point, Rajesh, on the growth side was exports also starting with the XUV three EXO doing well in South Africa, etcetera. So we do have at least that international leverage, which we probably didn't have in the past. So just wanted to add.
Another question, well, it's come from Gunjan from Moofa. Some of them are repeat but I'm just going to take you through implication of rare earth on both ICE and EV SUVs which you answered. Ramp up of EV business how should we think of ramp up to five ks per month run rate which I think we're already doing but and finally any color on booking run rate portfolio and variant expansion and customer feedback. Also talk about contribution margin for the EV offerings that you have.
A lot of these have got answers, so I'll maybe add a qualitative feel. So just to add, Gunjan, on the ramp up of EVs, we are right now at four. As we get into festival, we would ramp up to the level of five to six that we spoke about. And then the further ramp up beyond that we expect to happen after January when we launched the additional two products which we've spoken about. So that is something that will happen in the 2026.
The feedback out of customers who are using the product and we track this very regularly. So we have the typical methodology of Net Promoter Score tracking, which is a bouncable benchmark. So we track that on delivery, which is a two day second day ownership feedback and a thirty day ownership feedback. All of these are very strong numbers that we're getting. We believe that the value proposition is very strong.
And we are getting a very different profile of customers. Interestingly, these electric vehicles has the highest women ownership amongst all our product portfolio. So, we are getting a very different profile of customers. I don't remember right on the exact number, but I think 80 odd percent of our customers who bought electric vehicles are not mine.
Business today has asked a question on
ex customers of mine, ex Orca or current customers.
Okay. With the CAFE norms becoming mandatory for commercial vehicles including the N1 category, what sort of impact do you see on the margins and overall your view on the CAFE norms, what's been happening in the press?
So on the CAFE norms, basically this is a discussion that is very actively advocated by SIAM. SIAM has given for the passenger vehicle business a proposal around the CAFE norms in December 24 and for the commercial vehicle guidance in 2025. We strongly endorse and support the SIAM proposal. And we believe that there's very high alignment within the SIAM organizations around that. We will wait for the government to come back on what is the final version of that.
And we would be prepared to, of course, limit whatever is the final decision. But we believe there is high alignment within the SIAM around.
Naveen John from Fortune India. Mahindra, what is the timeline for Mahindra's scaling its EV offerings and how do you protect and grow the market share in face of fierce competition that will intensify with the entry of new international players?
So I think I've answered the question on the addition of the new products. Of course, as new players come in, market share is something like a little bit. From a volume standpoint, we do believe that, hence our goal should be around the revenue market share because our products will be at much higher average price points than copper. Like what we've seen with the entry of new players for the last two quarters. We've seen the EV penetration as you just saw on the graph start to move up.
We believe as more players will come in, EV penetration will go up. That is fundamentally the right direction for the country. We strongly endorse the EV journey that the government of India has laid out. And, we are seeing very good progress with new players coming in. The charging ecosystem is also getting much more stable.
And there are very strong plans that the government has to implement through the Ministry of Heavy Industries, and a few other partners in the ecosystem to execute a stronger charging infrastructure. So we think there's a combination of all of this, we will start now seeing a rapid growth in EV penetration as Waterpump kicks in, ecosystem starts developing. And that will lead to growth for electric vehicles. And I believe we will grow overall for passenger vehicles through that process. So, I think we will have to assume that as competition comes in, share will get affected, but overall volume growth start taking.
Yeah, I'll just add a couple of points to that. We've had this question on competition for a few decades now. And what we've seen is that competition has always made us stronger. The one difference we see this time is that usually in the past when competition came in, we had to improve our offerings, which we did and we could combat competition well. This time with the electric cars, products actually stack up very well against the coming in.
So we're in a better position to start with. And that gives us a lot more confidence based on what we've achieved over the last few years to be able to do well in the market. And I would dare say, maintain and potentially grow market share as well.
Arvind Sharma from Citi, his question is views on commodity costs and the impact on Q1 FY twenty twenty six margins. Also if you could please share any updated news on TREM five.
So on the commodity prices, we are concerned about steel going up. Steel has gone up by about 6% over the last quarter. We were able to mitigate some of this in quarter one through hedging and inventory carryovers as well. We have taken some price increases to pass this on to customers as well already. But really, our view is that, looking at the overall inflation levels in the category, there should be an effort made to moderate the level of inflation that is getting kicked off with raw material increases to steel.
And so, but that something definitely which is a watch out. I think second question was around TrendFi. The government had put a panel in place and they made a recommendation splitting the kind of implementation needed by different horsepower categories. We believe that is a reasonable proposal, and we are comfortable with, you know, an ability to implement that in a manner which is realistic within the Google infrastructure available in the country and the comparability and integrity of, you know, the changes in the product to meet that level of emission requirement. We will be still waiting for a final verdict on what the timelines for those NOPs are, once the panel report is being evaluated? Yeah,
just on the commodity inflation, it's important to understand that the hedges act on our overall purchases. So while we did get enough offset in the current quarter, if the steel inflation continues, then that will impact future quarters. We of course, like every other quarter, we'll have actions to try and offset, but it is a true headwind for not just us, but the industry. So that's something that we'll have to keep watching. And in addition to steel, steel was the largest, there are certain precious metals which are also starting to see some inflation that could be driven by just overall pre buys driven by The US.
So we'll have to watch that as well. But inflationary environment is right now a little bit more than what we were counting on till last quarter.
Rakib Kumar from BNB Paragga. As you ramp up delivery of lower variant of EV models, do you see a higher cannibalization of existing ICE models? Any update you can share on the farm machinery business? It seems to be trending behind your targets. What's the reason and how do you plan to address it?
Yes. So firstly, on the lower packs of BEVs, think that those packs are very important. And as a part of the learning, we will have packed towards 79 kilowatt hour, which we've announced and we think that's an attractive price. We've always said that we are agnostic to cannibalization, because over a period of time, the unit margin of an electric vehicle and an ICE SUV is going to be the same. So, you know, and which is why we've been comfortable about putting both portfolios in the same dealership showroom.
So our mandate is to sell what customer choice is. And we are happy to give customers the choice to choose between any of our packs and between the EV and I. So it is possible that there will be cannibalization, but we think that there will be overall growth. So far with PAC-three, we've not seen cannibalization, of course, that was at a different price point. With PAC-three as well, PAC-two, which comes in 79 kilowatt hour is at 23.7 lakhs.
So it is not like it is cannibalizing into 80%, 90% of our volume. The only product we have at that kind of a price point right now is XUV seven point zero. We have nothing else in that price range right now. So we are not too worried about the cannibalization. On the Farm Machinery business, we have recalibrated our ambition and moved into saying reasonable growth without diluting profits.
So we have moderated our growth ambition. And we are now within the new growth ambition that we've set for ourselves. And we will focus at this point of time, strengthening our product pipeline, you know, across multiple streams, we have to strengthen our Harvester business. Just as an example, we have Harvester businesses right now, market share about 5%. We've launched an improved product and that hopefully we are beginning to see traction on that and we'll start building share on some of these big categories which are value drivers.
We will take the growth more incrementally than what we are set out to do. But in the process of that manage the bottom line on the palm sharing business.
NDTV profit, Puneet asks a question on the ROX bookings and delivery schedule now. 3XO's current availability in which export markets and what stable volume targets for exports are you expecting for 3X?
The Tharrox question was bookings. Bookings. Tharbox has a booking pipeline. So the booking pipeline is much more on the four by four part of the portfolio. You know, the as we said earlier, our intention is to not have long waiting periods and booking, and that's the endeavor.
So we've started we've ramped up. As we said, we've unlocked the fungibility issue we had between PIDORA and ROX. So we have been able to ramp up ROX volumes now, which has used the waiting period. And hopefully, we will continue to work on that. On the export piece, 3XL has done extremely well in South Africa.
We have just launched it in Australia. And the initial response has been very, very positive, very positive media reports and customer reports. At this point, we're hoping to do roughly 1,000 plus of 3XO in the month.
Okay. Question from Money Control from Varun Singh. How much is the overall first time buyer penetration in your SUVs now? Can you also share some model wise percentage figures? And with Tharrox introduction of Tharrox what's been the impact on the three door Thar volumes and e buyer penetration?
It's hard to measure first time buyer. So I'm not not venturing into that data point at the moment. The source of the data around that across models we found is not always very reliable. Vehicles are owned in different people's names. India is a country with a joint family system.
50% of our volumes come out of rural. So, you know, it's very hard to get very reliable data on who in the family, especially in Google India, know, under or into on a previous vehicle or in whose name it is. So I you know, we've realized after trying to measure that there is not a very reliable piece of data. So I would kind of stay away from that. Sorry, Swathi.
Can you add what are the Varun, can you just recap if you have a tab there?
Yeah. So Tharbox, the three door.
Yeah. The Thar three door is doing about between 3 and a half to 4,000 a month. And between the two rocks and the Thar three door, we have reasonable fungibility now, but we are consuming almost the full capacity between the two. In a way we determine the mix of the two.
Question from UBS from from Odd Kumar. Some questions are repeated, so I'm not taking that bunch of others. How should one see DNA evolving for auto consolidated going ahead? Can you please remind us about your auto launch pipeline for FY '26 and FY '27 and given the response to your BEVs and India's low cost advantage is there an opportunity for an alliance with a global OEM for exports of your BEVs?
Depreciation.
You will recall in the fourth quarter, we had to do some cleanup of certain projects, which caused the depreciation to spike. It's now back more to the normal range. What you'll see is with the CapEx that we have will see quarter over quarter some growth in DNA, but it is not going to be the kind of spike you saw in the fourth quarter. I'm assuming that's where the question is coming from. And as we called out at that time, we expected it to drop in 1Q, which is what it has done now.
But this should be the run rate with gradual increase as the CapEx comes online and we have to depreciate or amortize that.
Yes. On the product pipeline, Promod, we are on track with the product pipeline that we had shared by way of numbers. It will be an exciting 2026, but then, of course, 2027.
But we hope to see more,
know, share with media more details and with all of you in the Investor Day to November on the new platform, which will get revealed the August 15, where you will get a better visibility on the back. So it is continues to be a very exciting portfolio. You did speak about the EVs and the opportunity of using India as a low cost center. We are seeing that benefit as we see new players coming in, we have a very strong value proposition. We at this point of time are not necessarily any alliance as you call it around that.
But there are opportunities for us to grow global at the appropriate time and pace.
So Mantra's question, is Classic Legends current market performance meeting expectations? When do you plan to have it listed and unlock value?
So Classic Legends has a fantastic set of products. There were nine awards that we won last year and this year. And the market overall has been slower, which is what we're seeing reflect in our numbers as well. But there's a high degree of optimism around it based on the products that we have and what that can do for the business as we go forward.
Again, Satish?
No, we are hoping somewhat to see a good festival season up ahead and are gearing up for channel ramp up or to leverage the new products that are being have just been launched and are in the pipeline for launch.
Amit Hidanandani from PhillipCapital, why M and M is behind in exports as we have world class SUVs, What steps are you taking to increase export sales?
Amit, I think it's not fair to compare exports of ours with other global players. For other global players, they don't need to build either a brand or a channel. India becomes in a manner of speaking white label for them into those countries. For us, we have to go country at a time because we have to establish dealer network channels, pairs network, lots of things on the ground, and most importantly, and footprint. And that's the approach we've taken.
So we've invested, for example, over many years in South Africa. And now with the right product portfolio, we've gone into being the top 10 OEMs, the fastest growing brand in South Africa. This is a result of the effort that we put in. Today, if you go around South Africa, you will see Mejra vehicles, you will see very good Mejra. The same is being seen in places like Australia.
So I think we will have to build our brand step by step at a time. Our idea is not to be ad hoc about it and try and just look for short term deal based exports, but to fundamentally invest in brand channel and market creation and that's the process that we are on.
Question from Bus Coach India, Santosh Sharma. Electric buses are gaining traction. Is Eminem planning to capture a share in the electric bus segment? Any investments you plan to do to further expand the electric bus business in collaboration with SML Isuzu?
Yeah, so SML Isuzu has revealed up electric bus and it's a pretty good bus it looks like. And whatever we do in the electric bus segment will be through the SML, Kisushu entity. So that's probably the plan. There's no plan to do any electric bus within the Mahindra trucks and buses.
I think other questions are a repeat of most that I already asked. So I think we can wrap it up. Thank you everyone for joining in and we will close the session now. Thank you.
Yeah, thank you again everyone for joining in and appreciative in coming in today instead of tomorrow which is what we traditionally planned for but Just given the circumstances today, we felt that it was better to close our board meeting and the results as well. So thank you. We appreciate your concern.