SUV Revenue Market Share
27.3%
+570bps YoY
SUV revenue market share expanded significantly, driven by strong demand for new models.
M&M
Diversified
01 Aug 2025
Mahindra & Mahindra Limited — Q1 FY26
M&M reported a strong Q1 FY26 with consolidated PAT up 24% YoY to INR4,083 crore and ROE crossing 20.6% for the first time.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
M&M reported a strong Q1 FY26 with consolidated PAT up 24% YoY to INR4,083 crore and ROE crossing 20.6% for the first time. Auto revenue grew 31% driven by SUV volume growth of 22% and market share expansion to 27.3% (+570bps). Farm tractor volumes rose 10% with market share at 45.2% (+50bps) and PBIT margin of 19.8%. Management maintained SUV growth guidance of mid-to-high teens for FY26, supported by new EV launches and refreshes. Key risks include rising steel prices (up 6% QoQ) and potential urban demand slowdown, though rural sentiment is improving. The EV business is ramping profitably without PLI accrual, with EBITDA positive at INR90 crore for MEAL.
M&M ने पहली तिमाही (अप्रैल-जून 2025) में शानदार नतीजे दिए हैं। कंपनी का कुल मुनाफा पिछले साल की तुलना में 24% बढ़कर 4,083 करोड़ रुपये हो गया। पहली बार कंपनी की कमाई पर रिटर्न (ROE) 20.6% से ऊपर पहुंची। गाड़ियों की बिक्री से आय 31% बढ़ी, क्योंकि SUV की बिक्री 22% बढ़ी और बाजार हिस्सेदारी 27.3% हो गई। ट्रैक्टर की बिक्री 10% बढ़ी और बाजार हिस्सेदारी 45.2% रही। कंपनी को उम्मीद है कि SUV की बिक्री इस साल 15-17% बढ़ेगी, खासकर नई इलेक्ट्रिक गाड़ियों से। मुश्किलें: स्टील के दाम 6% बढ़े हैं और शहरों में मांग धीमी हो सकती है, लेकिन गांवों में हालात सुधर रहे हैं। इलेक्ट्रिक गाड़ी कारोबार (MEAL) ने 90 करोड़ रुपये का EBITDA कमाया।
Key Numbers
Tractor Market Share
45.2%
+50bps YoY
Highest ever quarterly market share in tractors, with both Mahindra and Swaraj brands performing well.
Auto Standalone PBIT Margin
10%
flat
Auto standalone margin remained healthy at 10%, excluding electric SUV contract manufacturing.
EV SUV Penetration
8%
+8pp YoY
Electric SUV penetration as a percentage of total SUVs reached 8%, up from near zero last year.
What Changed vs Last Quarter
NEW
EV ramp-up to 5,000-6,000 units per month by festive season
EV production is expected to ramp up from current 4,000 to 5,000-6,000 per month during the festive season, with further ramp-up after January 2026.
NEW
Tech Mahindra EBIT margin target of 15% by F27
Tech Mahindra's EBIT margin recovery is on track at 11.1% this quarter, with a target of 15% by F27.
NEW
New platform reveal on August 15 and Investor Day in November
A new platform will be revealed on August 15, with more details shared at the Investor Day in November.
UPDATED
SUV volume growth guidance of mid-to-high teens for FY26
Management reaffirmed SUV volume growth guidance of mid-to-high teens for FY26, supported by new EV launches and refreshes.
DROPPED
Tractor industry growth of 6-7% for FY25
Revised tractor industry growth outlook to 6%-7% for the full year, implying 13%-15% H2 growth.
DROPPED
EV launches in early 2025
Two electric origin SUVs (BE 6e and XEV 9e) to be revealed in November 2024 and in market early 2025.
DROPPED
Auto PBIT margin medium-term goal of ~10%
Management targets auto PBIT margin to first reach FY19 levels of around 10% as a medium-term goal.
NEW RISK
Steel price inflation impacting margins
Steel prices have risen 6% QoQ, and while hedges mitigated Q1 impact, continued inflation could pressure margins in future quarters.
NEW RISK
Risk to SUV growth guidance from economic deterioration
Management stated that if the economic environment deteriorates significantly, the mid-to-high teens SUV growth guidance could be at risk.
NEW RISK
Cannibalization of ICE SUVs by lower-priced EV variants
As lower-priced EV variants launch, there is potential for cannibalization of ICE SUV sales, though management is agnostic due to similar unit margins.
RISK GONE
International farm business stress
North American tractor market has shrunk significantly (11 quarters of degrowth) and Turkish hyperinflation impacts accounting; management is evaluating but not exiting yet.
RISK GONE
EV launch costs and margin dilution
Q3 will see marketing and depreciation costs for EVs with no revenue, and EV margins as a percentage will be lower than ICE due to denominator effect.
RISK GONE
LCV demand recovery uncertainty
LCV industry has been subdued for several quarters; while October showed positive turnaround, sustainability is uncertain.
Management Guidance
SUV volume growth guidance of mid-to-high teens for FY26
Management reaffirmed SUV volume growth guidance of mid-to-high teens for FY26, supported by new EV launches and refreshes.
Management guidance growthEV ramp-up to 5,000-6,000 units per month by festive season
EV production is expected to ramp up from current 4,000 to 5,000-6,000 per month during the festive season, with further ramp-up after January 2026.
Management guidance growthTech Mahindra EBIT margin target of 15% by F27
Tech Mahindra's EBIT margin recovery is on track at 11.1% this quarter, with a target of 15% by F27.
Management guidance marginsNew platform reveal on August 15 and Investor Day in November
A new platform will be revealed on August 15, with more details shared at the Investor Day in November.
Management guidance otherKey Risks
Steel price inflation impacting margins
Steel prices have risen 6% QoQ, and while hedges mitigated Q1 impact, continued inflation could pressure margins in future quarters.
high · management_commentaryUrban demand slowdown
Management acknowledged a tangible urban slowdown, which could affect auto sales if sentiment does not improve during the festive season.
medium · management_commentaryRisk to SUV growth guidance from economic deterioration
Management stated that if the economic environment deteriorates significantly, the mid-to-high teens SUV growth guidance could be at risk.
medium · analyst_questionCannibalization of ICE SUVs by lower-priced EV variants
As lower-priced EV variants launch, there is potential for cannibalization of ICE SUV sales, though management is agnostic due to similar unit margins.
low · analyst_questionNotable Quotes
Consolidated profit after tax is up 24 and ROE is north of 20% for the first time, 20.6%.
We stay with our number. So we stay with the mid to high teens as a growth percentage.
We are comfortably covered on the railroads, the magnet issue as we've shared earlier. We have no disruption in production because of that.
Frequently Asked Questions
What was Mahindra & Mahindra's revenue in Q1 FY26?
Mahindra & Mahindra reported revenue of — in Q1 FY26, representing a +22% change compared to the same quarter last year.
What guidance did Mahindra & Mahindra management give for FY27?
SUV volume growth guidance of mid-to-high teens for FY26: Management reaffirmed SUV volume growth guidance of mid-to-high teens for FY26, supported by new EV launches and refreshes. EV ramp-up to 5,000-6,000 units per month by festive season: EV production is expected to ramp up from current 4,000 to 5,000-6,000 per month during the festive season, with further ramp-up after January 2026. Tech Mahindra EBIT margin target of 15% by F27: Tech Mahindra's EBIT margin recovery is on track at 11.1% this quarter, with a target of 15% by F27. New platform reveal on August 15 and Investor Day in November: A new platform will be revealed on August 15, with more details shared at the Investor Day in November.
What are the key risks for Mahindra & Mahindra in FY27?
Key risks include Steel price inflation impacting margins — Steel prices have risen 6% QoQ, and while hedges mitigated Q1 impact, continued inflation could pressure margins in future quarters.; Urban demand slowdown — Management acknowledged a tangible urban slowdown, which could affect auto sales if sentiment does not improve during the festive season.; Risk to SUV growth guidance from economic deterioration — Management stated that if the economic environment deteriorates significantly, the mid-to-high teens SUV growth guidance could be at risk.; Cannibalization of ICE SUVs by lower-priced EV variants — As lower-priced EV variants launch, there is potential for cannibalization of ICE SUV sales, though management is agnostic due to similar unit margins..
Did Mahindra & Mahindra meet its previous quarter's guidance?
Of 4 tracked promises, management 0 met, 0 close, 4 missed.
Where can I read the full Mahindra & Mahindra Q1 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.