Mahindra & Mahindra vs Infy Q3 FY26

M&M delivered a strong Q3 FY26 with consolidated revenue crossing INR 50,000 crore for the first time, up 26% YoY, and reported PAT up 47% YoY. Auto and farm volumes grew 23% each, with auto margins expanding 90bps and farm margins up 240bps. SUV volume rose 26%, maintaining #1 market share, while LCV share reached 51.9%. The farm segment saw domestic operating profit up 64%, though international impairments dragged. Management highlighted breakthrough performances in Mahindra Finance (operating PAT up 97%), Lifespaces (profits up 5x), and Logistics (first profitable quarter in 11). Guidance remains qualitative: auto demand momentum continues, farm enablers strong, and EV ramp-up on track with 80,000+ units targeted for FY27. Key risk: memory chip shortages could disrupt production across the portfolio.

Guidance read

EV volume target of 80,000+ units in FY27: Management expects to sell over 80,000 EVs in FY27, driven by the three current models and a new model (BO7) launching in calendar 2027. Capacity addition of 5,000-6,000 ICE units by July-August 2026: Debottlenecking will add 5,000-6,000 units per month for ICE products like XUV 3XO, Bolero, Scorpio-N, and Thar. Nagpur greenfield tractor capacity of 100,000 units: A new greenfield plant in Nagpur will add 100,000 units of Mahindra-branded tractor capacity, with additional capacity for Swaraj under evaluation. Last-mile mobility IPO in FY27: Management plans to list the last-mile mobility business via an IPO in FY27 to unlock value.

Risk read

Key risks include Memory chip shortage could disrupt production — Memory chip shortages are driving premiums and pose a supply chain risk across the entire portfolio, not just EVs. Management is mitigating with inventory buildup but acknowledges severity.; Commodity inflation may pressure margins — Precious metals and other commodities are inflating; hedges cover only part of the exposure. Management has taken a 1% price increase but may need more if inflation persists.; Farm subsidy-led demand may normalize — Maharashtra's tractor subsidy added ~35,000 units this year; its withdrawal could flatten demand in FY27, though other states may compensate.; International farm subsidiaries continue to drag — Impairments in Japan and Turkey impacted farm profitability. Restructuring will take time, with trailing costs expected through FY27..

Promise ledger

Of 2 tracked promises, management 0 met, 0 close, 1 missed, 1 delayed.

IN

Infy

Q3 FY26 · Diversified

Infosys delivered a strong Q3 FY26 with constant currency revenue growth of 1.7% YoY and adjusted operating margin of 21.2%, expanding 20 bps sequentially. Large deal TCV was robust at $4.8 billion with 57% net new, including a $1.6B NHS deal. The company raised FY26 revenue guidance to 3%-3.5% (from 2%-3%), while maintaining margin guidance of 20%-22%. Growth was driven by Financial Services and Energy/Utilities, where discretionary spending is returning and AI adoption is accelerating. Management sees FY27 growth acceleration in these two verticals. AI momentum is strong with 4,600 projects and 500 agents built. Risks include tariff uncertainties impacting Manufacturing and Retail, and potential compression in legacy services due to AI-led productivity.

Guidance read

FY26 revenue growth guidance raised to 3%-3.5% CC: Infosys raised its constant currency revenue growth guidance for FY26 from 2%-3% to 3%-3.5%. FY26 operating margin guidance maintained at 20%-22%: Operating margin guidance remains unchanged at 20%-22% for FY26. Growth acceleration in Financial Services and EURS in FY27: Management expects growth in Financial Services and Energy, Utilities, Resources, and Services verticals to accelerate in FY27 over FY26.

Risk read

Key risks include Tariff uncertainties impacting Manufacturing and Retail — Manufacturing and Retail/CPG verticals are impacted by tariff uncertainties, delaying client decisions and pressuring discretionary spend.; AI-led productivity compressing legacy services — AI-driven productivity benefits may compress legacy service revenues, though management sees net positive from new AI opportunities.; Potential contract attrition from Daimler — Analyst raised concerns about press reports of Daimler moving away; management noted current contracts valid till Dec 2026 but did not provide specifics..

Promise ledger

Of 3 tracked promises, management 0 met, 0 close, 3 missed.