Shares in the company fell as much as 1.4 per cent after the results. They were down 0.4 per cent before the results were released.
Mahindra, also the world's largest tractor company by sales volume, said profit for the fiscal third quarter was Rs 8.36 billion, against Rs 6.62 billion a year earlier. Net sales increased 29 per cent to Rs 106.43 billion.
Analysts, on average, expected profit of Rs 8.62 billion, according to data from Thomson Reuters Starmine.
Mahindra's passenger vehicle sales rose an annual 36 percent during the quarter, as its domestic tractor sales inched up 3.9 percent.