Can Mahindra & Mahindra Maintain Its Strong Growth Momentum in FY26 and Beyond?
Quarterly Highlights (Q2 FY26)
- Revenue: ₹33,420 Cr, up 21% YoY — marginally below estimates due to mixed performance across segments.
- EBITDA: ₹4,860 Cr, up 23% YoY — aided by stronger margins in Auto and Farm divisions.
- Auto Segment: Growth driven by SUV demand, new launches, and premiumization trends.
- Farm Segment: Revenue CAGR expected at 13% (FY25–28E) led by mechanization and policy support.
- Return on Invested Capital (RoIC): Expected to remain above 60%, signaling efficient capital deployment.
Mahindra & Mahindra’s results reaffirm its position as one of India’s most diversified automotive and agri players. Continued demand in SUVs, new EV plans, and robust farm segment contribution are expected to sustain double-digit growth in the coming years.
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Brokerage View: Nuvama on Mahindra & Mahindra
- Rating: Buy
- Target Price: ₹4,200 (based on 25x Sep-27E core EPS + ₹942/share for subsidiaries and investments).
- Revenue CAGR: 15% (FY25–28E) supported by Auto and Farm strength.
- Earnings CAGR: 19% (FY25–28E) with sustained margin expansion.
- Outlook: Management expects robust cash flows and capex efficiency amid electrification and global exports strategy.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that Mahindra & Mahindra continues to be a cornerstone stock in India’s auto and rural consumption theme. Its diversified model, superior RoIC, and focus on EV transition offer multi-year growth visibility. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Mahindra & Mahindra
- What Drives M&M’s Double-Digit Revenue Growth Outlook?
- How Does Mahindra Maintain Superior RoIC Levels?
- What Is Nuvama’s Long-Term View on Mahindra’s Auto and Farm Business?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
