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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.
bullish
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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।
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Steel price inflation impacting margins
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SUV Revenue Market Share
27.3%
+570bps YoY
SUV revenue market share expanded significantly, driven by strong demand for new models.
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
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.
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.
DROPPED
SUV growth to outpace industry in FY26
Management expects M&M SUV volumes to grow faster than the industry in FY26, driven by full-year contributions from Thar ROXX and 3XO, and incremental EV volumes from a new customer base.
DROPPED
Tractor industry growth in high single digits for FY26
Management guided for tractor industry growth in high single digits for FY26, with M&M focusing on execution rather than market share targets.
DROPPED
BEV delivery ramp-up to be gradual, focusing on customer experience
M&M plans to slow BEV deliveries in April-May to improve customer experience, with average waiting time of ~4 months. Production capacity is at 5,000/month initially.
DROPPED
PLI certification expected by Q2 FY26, cumulative accrual then
Management expects technical certification for PLI on XEV 9e by Q2 FY26, at which point cumulative PLI for all sold vehicles will be accrued.
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
Urban demand slowdown
Management acknowledged a tangible urban slowdown, which could affect auto sales if sentiment does not improve during the festive season.
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
Competitive intensity in tractors may pressure margins
Management noted that Q4 tractor margins benefited from lower competitive intensity; if competition increases, margins may come under pressure.
RISK GONE
EV ramp-up complexity and delivery experience challenges
Management highlighted that BEV deliveries are more complex than ICE, with software updates and customer onboarding taking 2-3 hours, leading to a deliberate slowdown in April-May.
RISK GONE
Rare earth metal supply chain restrictions from China
An analyst raised concerns about Chinese rare earth metal export restrictions; management clarified that end-use certification is needed but process is unclear, though inventory provides near-term cover.
RISK GONE
International farm subsidiaries continue to drag profitability
Three strategic international farm subsidiaries (Turkey, Brazil, MAgNA) had an aggregated loss of INR 104 crore in FY25, with Turkey losing share due to early TREM V compliance.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q3 FY25
Management expects the tractor industry to grow over 15% in Q4 FY25, driven by good reservoir levels, Rabi sowing, and favorable terms of trade.
Fast read
Guidance and risk preview
Management reaffirmed SUV volume growth guidance of mid-to-high teens for FY26, supported by new EV launches and refreshes.
Steel prices have risen 6% QoQ, and while hedges mitigated Q1 impact, continued inflation could pressure margins in future quarters.
View Risks →