Mahindra & Mahindra Raises Tractor Growth Guidance, Reports Strong Market Leadership

Mahindra & Mahindra Limited (M&M), one of India's leading automotive and farm equipment manufacturers, has announced robust performance and market leadership in its key business segments for the second quarter. The company has also revised its full-year tractor growth guidance upward and addressed concerns about rare earth supply for the current fiscal year.

Revised Tractor Growth Guidance

M&M has updated its full-year tractor growth guidance to low double digits from the previously stated high single digit growth. An executive from the company indicated that strong demand continues even after the festive season period.

Rare Earth Supply Update

During a call update, Mahindra & Mahindra confirmed that the company faces no risk from rare earth shortage during this fiscal year.

Automotive Segment Performance

The automotive division of M&M has demonstrated impressive growth and market dominance:

Revenue market share in the SUV segment reached 25.70%, marking a significant increase of 390 basis points.
The company maintained its #1 position in Light Commercial Vehicles (LCVs) under 3.5 tons, with a market share of 53.20%, up 100 basis points.
M&M also secured the top spot in electric 3-wheelers with a 42.30% market share.

Farm Equipment Segment Strengthens Position

The farm equipment division continued to build on its market leadership:

Tractor market share increased to 43.00%, up by 50 basis points, reinforcing M&M's dominant position in the segment.
The company expects the tractor industry to grow in low double digits, as shared during a recent conference call update.

Financial Highlights

M&M's financial performance for Q2 reflects the strength of its market position:

Metric	Q2 (Rs. cr)	Growth (YoY)
Consolidated Revenue	46,106.00	22%
Consolidated PAT	3,673.00	28%*
Auto Standalone PBIT Margin	10.30%**	Up 80 bps
Farm Equipment PBIT Margin	19.70%	Up 220 bps

*Excluding one-time gains and adjustments **Excluding e-SUV contract manufacturing

Segment-wise Performance

Automotive Segment:

Quarterly volumes reached 262,000 units, up 13%
Standalone PBIT increased by 14% to Rs. 2,281.00 cr
Consolidated revenue grew by 25% to Rs. 27,171.00 cr

Farm Equipment Segment:

Achieved highest ever Q2 market share at 43.00%
Volumes increased by 32% to 123,000 units
Standalone PBIT surged by 48% to Rs. 1,684.00 cr
Consolidated revenue rose by 25% to Rs. 10,225.00 cr

Management Commentary

Dr. Anish Shah, Group CEO & Managing Director of M&M Ltd., stated, "We are pleased with the strong execution and solid performance delivered across the group in Q2. Auto and Farm sustained their leadership with consistent gains in market share and profitability."

Mr. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd., added, "Strong performance of our Auto and Farm businesses continues in Q2 reinforcing our leadership position, with a gain of 390 bps YoY in SUV revenue share, and 100 bps YoY in LCV (< 3.5T) market share. In Tractors, we gained 50 bps YoY to reach 43.00% market share."

The company's focus on sustainable growth and value creation remains strong, as evidenced by its robust cash generation of over Rs. 10,000.00 crores in operating cash flow during the first half of the fiscal year.

Mahindra & Mahindra's continued market leadership and financial growth underscore its strong position in the automotive and farm equipment sectors, setting a positive tone for the remainder of the fiscal year. The company's revised outlook for the tractor industry further reinforces its confidence in the farm equipment segment's growth potential.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.09%	+2.35%	+3.23%	+16.81%	+22.14%	+484.14%

Mahindra & Mahindra Limited (M&M), one of India's leading automotive and farm equipment manufacturers, has reported robust financial results for the second quarter of the financial year 2026, demonstrating significant growth across key metrics.

Financial Highlights

M&M reported a consolidated profit after tax (PAT) of Rs 3,673.32 crore for the July-September quarter of FY26, marking a 15.8% year-on-year increase from Rs 3,170.72 crore in the same quarter last year. The company's revenue from operations grew by 21.7% year-on-year to Rs 45,885.40 crore, up from Rs 37,689.04 crore in Q2 FY25.

On a standalone basis, M&M's performance was even more impressive:

Net profit surged 17.7% year-on-year to Rs 4,520.52 crore
Revenue increased 21.3% year-on-year to Rs 33,421.60 crore from Rs 27,553.26 crore in the corresponding quarter of the previous financial year

Here's a breakdown of the key financial metrics:

Metric	Q2 FY26	Q2 FY25	YoY Growth
Consolidated Revenue	45,885.40	37,689.04	21.7%
Consolidated PAT	3,673.32	3,170.72	15.8%
Standalone Revenue	33,421.60	27,553.26	21.3%
Standalone PAT	4,520.52	3,840.71*	17.7%

*Note: The standalone PAT for Q2 FY25 is inferred based on the given growth rate.

Performance Analysis

The strong financial results demonstrate Mahindra & Mahindra's resilience and growth in both its automotive and farm equipment segments. The significant increase in revenue and profitability indicates robust demand for the company's products and effective operational strategies.

Outlook

Mahindra & Mahindra's Q2 FY26 results reflect its strong market position in both the automotive and farm equipment sectors. The significant growth in revenue and profitability positions the company well for the coming quarters.

As the company continues to innovate and expand its product portfolio, it aims to maintain its leadership position in key segments of the Indian automotive and farm equipment markets.