Target: ₹3,508
CMP: ₹2,951.90
Mahindra & Mahindra’s standalone revenue from operations rose 26.2 per cent to ₹39,554 crore, led by growth in the automotive and farm equipment segments. In Q4FY26, the automotive segment’s revenue increased 24.6 per cent to ₹31,116 crore. The farm equipment business grew 32 per cent to ₹8,483 crore, aided by increased sales in both domestic and export markets. Higher revenue led to a 18.8 per cent increase in EBITDA to ₹5,564 crore. However, EBITDA margin declined 80 bps to 14.1 per cent. Reported profit after tax (PAT) rose 53.3 per cent to ₹3,737 crore, owing to a robust performance by the automotive and farm equipment businesses.
The company is now demonstrating a rare combination of growth, margin resilience and portfolio optionality. The core SUV franchise is strengthening structurally through market share gains, premium mix improvement and capacity-backed growth visibility, while the farm business remains a dependable earnings anchor with disciplined profitability.
The EV business reaching operating profitability is a major strategic positive and reduces execution risk around future mobility investments. With the management showing consistent execution, improving return ratios and a diversified profit engine, M&M remains well placed to compound earnings and sustain positive re-rating support.
Therefore, we retain the Buy rating on the stock, with a rolled forward target price of ₹3,508 based on SOTP valuation.