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Mahindra & Mahindra Limited — 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.
bullish
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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.
M&M ने वित्त वर्ष 2025-26 की तीसरी तिमाही में शानदार प्रदर्शन किया। पहली बार कंपनी की कुल आय 50,000 करोड़ रुपये से अधिक हुई, जो पिछले साल से 26% ज्यादा है। मुनाफा 47% बढ़ा। कार और ट्रैक्टर की बिक्री में 23% की बढ़ोतरी हुई। एसयूवी की बिक्री 26% बढ़ी और बाजार में पहला स्थान बरकरार रहा। कंपनी की अन्य शाखाओं - महिंद्रा फाइनेंस, लाइफस्पेस और लॉजिस्टिक्स - ने भी अच्छा प्रदर्शन किया। आने वाले समय में कारों की मांग मजबूत रहेगी और इलेक्ट्रिक वाहनों का उत्पादन बढ़ेगा। अगले वित्त वर्ष में 80,000 से अधिक इलेक्ट्रिक वाहन बेचने का लक्ष्य है। हालांकि, मेमोरी चिप की कमी से उत्पादन प्रभावित हो सकता है।
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Memory chip shortage could disrupt production
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SUV Volume Growth
26%
+26% YoY
SUV volumes grew 26% YoY, maintaining #1 market share in the segment.
Farm Volume Growth
23%
+23% YoY
Farm volumes grew 23% YoY, though market share dipped slightly due to Swaraj stockouts.
Auto EBITDA Margin (ex-contract mfg)
10.4%
+90bps YoY
Auto standalone EBITDA margin (ex-contract manufacturing) improved 90bps YoY to 10.4%.
Farm Core Tractor Margin
21.2%
+240bps YoY
Core tractor margin improved 240bps YoY to 21.2%, near best-ever performance.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
Last-mile mobility IPO in FY27
Management plans to list the last-mile mobility business via an IPO in FY27 to unlock value.
DROPPED
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.
DROPPED
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
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.
DROPPED
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.
NEW RISK
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.
NEW RISK
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.
NEW RISK
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.
NEW RISK
International farm subsidiaries continue to drag
Impairments in Japan and Turkey impacted farm profitability. Restructuring will take time, with trailing costs expected through FY27.
RISK GONE
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.
RISK GONE
Precious metal inflation impacting margins
Rising precious metal prices (up 60-80% since Jan) could increase hedging costs and pressure margins if trend continues.
RISK GONE
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.
RISK GONE
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.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q2 FY26
Management reiterated SUV industry growth guidance of mid-to-high teens for FY26, unchanged from the start of the year.
Mentioned in Q1 FY26, Q2 FY26
Rising precious metal prices (up 60-80% since Jan) could increase hedging costs and pressure margins if trend continues.
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 Q2 FY26, Q4 FY25
Management upgraded tractor industry growth outlook from 5-7% to low double digits (10-12%) for FY26, citing GST cuts and strong rural fundamentals.
Mentioned in Q2 FY26, Q3 FY25
Draft CAFE norms propose lower EV credits, and TREM V implementation timeline is under negotiation; both could require higher EV mix or technology investments.
Fast read
Guidance and risk preview
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.
Memory chip shortages are driving premiums and pose a supply chain risk across the entire portfolio, not just EVs.
View Risks →