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Mahindra & Mahindra Limited — Q2 FY26
M&M delivered a strong Q2 FY26 with consolidated revenue up 22% YoY and operating PAT up 28% YoY, driven by broad-based outperformance across auto, farm, and financial services.
bullish
high
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M&M delivered a strong Q2 FY26 with consolidated revenue up 22% YoY and operating PAT up 28% YoY, driven by broad-based outperformance across auto, farm, and financial services. Farm profits surged 54% YoY on 32% volume growth and 20.6% core tractor margins. Auto PBIT grew 14% despite GST transition disruptions that deferred ~8,000 vehicle billings to October. Mahindra Finance posted a breakout quarter with 45% operating profit growth, while Tech Mahindra PAT rose 35% YoY. Management raised tractor industry growth guidance from 5-7% to 10-12% for FY26, citing GST cuts and strong rural fundamentals. Key risks include potential Nexperia chip supply disruption in Q4, precious metal inflation, and uncertainty around CAFE norms and TREM V regulations. Overall, the quarter marks a rare inflection point where all major businesses contributed simultaneously.
M&M ने दूसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल आय पिछले साल से 22% बढ़ी और मुनाफा 28% बढ़ा। ऑटो, कृषि और वित्तीय सेवाओं में अच्छी बढ़त देखी गई। कृषि कारोबार का मुनाफा 54% बढ़ा, क्योंकि ट्रैक्टर की बिक्री 32% बढ़ी और मुनाफा मार्जिन 20.6% रहा। ऑटो सेक्टर में GST बदलाव के कारण 8,000 गाड़ियों की बिक्री अक्टूबर में हुई, फिर भी मुनाफा 14% बढ़ा। महिंद्रा फाइनेंस का मुनाफा 45% और टेक महिंद्रा का 35% बढ़ा। कंपनी ने ट्रैक्टर बिक्री वृद्धि का अनुमान 5-7% से बढ़ाकर 10-12% कर दिया। जोखिमों में चिप की कमी, महंगी धातुएं और नए नियम शामिल हैं। यह तिमाही सभी कारोबारों के एक साथ अच्छा करने का दुर्लभ मौका था।
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Nexperia chip supply disruption in Q4
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Read Transcript →Quarter Snapshot
SUV Revenue Market Share
Number 1
+390bps YoY
Revenue market share gained 390 basis points year-over-year, reflecting strong SUV portfolio performance.
Tractor Market Share
44%
+50bps YoY
Tractor market share reached 44% in H1 FY26, up 50 bps YoY, driven by strong rural demand.
LCV Market Share
53.2%
+100bps YoY
LCV market share increased 100 bps to 53.2%, with segment volumes growing 13% in Q2.
Electric SUV Penetration
8.7%
+90bps QoQ
Electric SUV penetration in portfolio rose 90 bps sequentially to 8.7%, driven by XUV400 and BE6.
What Changed vs Last Quarter
NEW
Tractor industry growth raised to 10-12% for FY26
Management upgraded tractor industry growth outlook from 5-7% to low double digits (10-12%) for FY26, citing GST cuts and strong rural fundamentals.
NEW
PLI incentives expected to continue till FY28
PLI scheme for EVs is expected to last till fiscal 2028, with sufficient funds remaining to support claims.
NEW
No further rights issues planned in near future
Management stated there are no rights issues planned in the near future for any listed or unlisted subsidiaries.
UPDATED
SUV industry growth maintained at mid-to-high teens
Management reiterated SUV industry growth guidance of mid-to-high teens for FY26, unchanged from the start of the year.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Nexperia chip supply disruption in Q4
Potential disruption from Nexperia chip supply could impact production in Q4 FY26, though Q3 is largely covered and substitutes are being qualified.
NEW RISK
Uncertainty around CAFE norms and TREM V regulations
Draft CAFE norms propose lower EV credits, and TREM V implementation timeline is under negotiation; both could require higher EV mix or technology investments.
NEW RISK
Dealer cess refund sub judice
The dealer cess refund issue is pending in Supreme Court; if resolved unfavorably, it could impact dealer finances and channel sentiment.
RISK GONE
Urban demand slowdown
Management acknowledged a tangible urban slowdown, which could affect auto sales if sentiment does not improve during the festive season.
RISK GONE
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.
RISK GONE
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.
🤫 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.
Mentioned in Q1 FY26, Q2 FY25
Management acknowledged a tangible urban slowdown, which could affect auto sales if sentiment does not improve during the festive season.
Fast read
Guidance and risk preview
Management upgraded tractor industry growth outlook from 5-7% to low double digits (10-12%) for FY26, citing GST cuts and strong rural fundamentals.
Potential disruption from Nexperia chip supply could impact production in Q4 FY26, though Q3 is largely covered and substitutes are being qualified.
View Risks →