M&M Posts 3% Gain in Q4 Earnings, Brokerages Maintain Optimistic Outlook for SUV and Electric Vehicle Pipeline
Mahindra & Mahindra Ltd Posts Strong Q4 FY26 Earnings, Stock Rises Over 3 Percent
Mahindra & Mahindra Ltd shares surged over 3 percent in early trade on Wednesday, following the auto major's strong set of Q4 FY26 earnings. The company's consolidated net profit rose 42 percent year-on-year to Rs 4,667.6 crore for the quarter, while consolidated revenue increased 29.1 percent to Rs 54,982 crore.
The stock was trading at Rs 3,310 in early trade, up 3.1 percent for the day after gaining another 3.4 percent in the previous session following the results announcement. Over the past one year, the stock has risen 7.8 percent, outperforming the Nifty 50, which is down 0.7 percent during the same period.
On a standalone basis, net profit jumped 53.3 percent year-over-year to Rs 3,737 crore, while revenue rose 26.2 percent to Rs 39,554 crore. EBITDA grew 18.8 percent to Rs 5,565 crore, although margin declined to 14.1 percent from 14.9 percent in the year-ago quarter.
| Metric | Q4 FY26 | Q4 FY25 | % Change |
|---|---|---|---|
| Consolidated Revenue | Rs 54,982 crore | Rs 42,819 crore | 29.1% |
| Consolidated Net Profit | Rs 4,667.6 crore | Rs 3,285.8 crore | 42% |
| Consolidated EBITDA | Rs 10,127.3 crore | Rs 7,945.8 crore | 27.5% |
The automotive business remained the key growth driver for the group. Mahindra & Mahindra's consolidated auto segment revenue rose 32 percent year-over-year to Rs 34,294 crore in Q4, while profit after tax (PAT) from the segment surged 49 percent to Rs 2,553 crore. The company said Q4 auto volumes rose 21 percent to 307,000 units, while SUV revenue market share increased 60 basis points year-over-year to 24.5 percent.
The farm equipment segment reported 26 percent revenue growth to Rs 10,022 crore, while PAT was up 1 percent at Rs 768 crore. Tractor volumes increased 36 percent year-over-year to 120,000 units during the quarter.
Brokerages largely remained positive on the stock following the earnings update. Most analysts highlighted Mahindra & Mahindra's continued gains in SUVs and its expanding internal combustion engine (ICE) and electric vehicle pipeline. The company also recommended a final dividend of Rs 33 per share.
Investor Takeaway
Investors should maintain an optimistic outlook for Mahindra & Mahindra's SUV and electric vehicle pipeline.
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