For Mahindra & Mahindra Ltd (M&M), margins stole the present within the September quarter (Q2FY26). Standalone income rose 21.3% year-on-year (y-o-y) to ₹33,421 crore, barely beneath consensus expectations on account of decrease realizations. Nevertheless, standalone Ebitda margin expanded 20 foundation factors (bps) to 14.5%, beating Bloomberg’s consensus estimate of 14%, aided by a richer product combine and bettering efficiency within the electrical automobile (EV) section.
The EV division, as soon as a drag on profitability, is now contributing positively. Its Ebitda margin rose 260 bps sequentially to six.2%, supported by the PLI (production-linked incentives) scheme. The XEV9e is already availing these advantages, whereas the BE6 will qualify from April 2026, including one other margin lever. Nomura International Markets Analysis thinks EV margins might attain double digits by FY28 as the complete portfolio will get PLI by FY28F.
Within the auto enterprise, Ebit margin rose 30 bps sequentially to 9.2% regardless of a better BEV combine and flat volumes. The auto Ebit margin (excluding BEVs) got here in at 10.3%, up 80 bps y-o-y, whereas the farm Ebit margin improved 222 bps year-on-year to 19.7% on the again of working leverage.
Within the farm gear section, tractor volumes surged 32% y-o-y, prompting M&M to boost its trade progress forecast for FY26 to 10-12% from 5-7% earlier. Improved reservoir ranges, larger authorities spending, stronger rural liquidity, and the latest GST charge reduce are seen as key tailwinds.
JM Monetary Institutional Securities expects farm margins to profit from working leverage, whereas robust SUV volumes, EV growth and PLI advantages might elevate auto profitability. The brokerage has raised margin estimates for FY26-27 by 50-70 bps, implying a 9.6-11.4% earnings per share improve.
Mahindra continues to defend its SUV management, gaining 390 bps in income market share y-o-y to 25.7%. Festive demand remained agency, with retail gross sales up within the mid-to-high teenagers. The brand new Bolero has acquired a powerful market response.
Administration has maintained its mid-to-high teenagers progress steering for SUVs in FY26 and expects low double-digit progress in mild business autos. Two refreshed inside combustion engine (ICE) fashions and one new launch are deliberate for calendar yr 2026, making certain a balanced product cycle forward.
On Thursday, M&M introduced the sale of its whole 3.53% stake in RBL Financial institution for ₹678 crore, representing a 62.5% acquire on its funding. Whereas that is sentimentally optimistic for the inventory, any re-rating will rely on how the core enterprise sustains its momentum in margins and volumes.
To date in 2025, the inventory has gained 18% and trades at 25x FY27 estimated earnings, based on Bloomberg knowledge.
