M&M eyes Rs 4,100cr auto revenue boost from AI in FY27

Chennai: Auto major Mahindra & Mahindra said it is accelerating its artificial intelligence (AI) push as it has begun to deliver meaningful impact across its businesses.While much of the debate around AI centres on efficiency and job losses, Mahindra sees greater opportunity in enhancing quality, customer experience and market reach—areas it expects will drive job creation. The group does not anticipate net job losses from AI, instead betting on workforce redeployment as new use cases scale, while closely tracking outcomes across revenue, costs and customer experience, according to its Group CEO and MD, Anish Shah.Nearly two years into deploying AI across processes, the company is now seeing tangible benefits. In the automotive business, AI initiatives are expected to generate about Rs 4,100 crore in incremental revenue this year, improve customer satisfaction by two to three percentage points, and cut product development timelines by 10%, helping shorten go-to-market cycles in the competitive SUV segment.The company said AI-enabled outreach generated 17,000 test drives for a recent SUV launch, highlighting its potential to expand customer reach and personalise engagement at scale. In Mahindra Finance, the group is targeting a significant expansion in AI-led efficiencies and business growth. For FY27, the company targets an additional Rs 10,000 crore in disbursements, a 20% increase in thin-file customer conversions, and 80% of customer onboarding through agentic AI processes. It also aims for 60% of servicing to be self-driven using AI and 75% of live contract collections to be AI-assisted.Mahindra also plans to embed AI at the design stage of new ventures, including its upcoming life insurance business, which is being built as an "AI-first" operation with automated processes spanning onboarding and claims management. On Tuesday, the company reported a standalone revenue of Rs 147,765 crore for FY26, up 25% from Rs 118,625 crore in FY25, while net profit rose 32% to Rs 15,639 crore from Rs 11,855 crore. In Q4, net profit increased 53% to Rs 3,737 crore (Rs 2,437 crore), while revenue grew 25% to Rs 39,601 crore (Rs 31,609 crore). The board has recommended a final dividend of Rs 33 per share for FY26.
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