06 Nov , 2025 By : Debdeep Gupta
Mahindra & Mahindra Ltd (M&M) shares rose 1.4 percent to Rs 3,630 on Thursday after the automaker reported a strong set of earnings for the September quarter, beating Street estimates on most parameters. Analysts remained positive on the stock, citing sustained momentum in the company’s auto and farm businesses and its improving margin profile.
M&M’s standalone net profit for Q2 FY26 rose 18 percent year-on-year to Rs 4,521 crore, aided by robust SUV and tractor sales. Revenue from operations grew 21 percent to Rs 35,080 crore, while EBITDA increased 23 percent to Rs 6,467 crore. Operating margin expanded marginally to 18.43 percent. The company reported 13 percent growth in vehicle sales and a 32 percent jump in tractor volumes, with management highlighting strong festive demand and market share gains across segments.
Brokerages maintained a bullish stance on M&M following the strong performance, projecting sustained earnings growth driven by continued demand in both the auto and farm equipment businesses.
Mahindra & Mahindra stock call: Brokerages say 'buy'; check target prices
* Jefferies reiterated its buy rating on Mahindra & Mahindra stock and raised the target price to Rs 4,300 per share, highlighting that this marks M&M’s 14th consecutive quarter of double-digit EBITDA growth. The company increased its FY26 outlook for tractors and light commercial vehicles (LCVs) to double-digit growth. Jefferies pointed out that M&M plans to introduce three new SUVs in calendar year 2026 and roll out a new platform in 2027, signalling a strong product pipeline for the medium term.
* HSBC also maintained a buy call with a target price of Rs 4,000, saying that M&M’s auto business margins came in ahead of expectations, while farm margins were broadly in line. The brokerage also noted the company’s decision to raise its tractor and LCV growth guidance to low double-digits. It added that mid-cycle SUV upgrades and product refresh should support continued market share gains in the auto segment.
* Citi echoed a similar positive view, keeping its buy rating and target price at Rs 4,230 per share. The brokerage said M&M’s Q2 results beat estimates on the back of stronger-than-expected margins. It noted that management has guided for tractor sales growth of 10-12 percent year-on-year and maintained its mid-to-high-teens growth outlook for utility vehicles, underpinned by demand momentum and an expanding product portfolio.
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