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Mahindra & Mahindra Ltd. (IN:M&M)
:M&M
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Mahindra & Mahindra Ltd.
(M&M)
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Rating:74Outperform
Price Target:
₹3,898.00
▲(6.84% Upside)
Mahindra & Mahindra Ltd. scores well due to strong financial performance and positive earnings call highlights, including profit growth and market share expansion. However, the lack of technical analysis data and challenges such as high leverage and cash flow issues slightly dampen the overall score. The valuation is reasonable, supported by a solid dividend yield.
Mahindra & Mahindra Ltd. (M&M) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.54T
Dividend Yield4%
Average Volume (3M)107.78K
Price to Earnings (P/E)29.7
Beta (1Y)1.79
Revenue Growth17.72%
EPS Growth24.18%
CountryIN
Employees260,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)28.70
Shares Outstanding1,243,528,800
10 Day Avg. Volume105,861
30 Day Avg. Volume107,779
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹4,014.36Price Target Upside10.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Mahindra & Mahindra Ltd. Business Overview & Revenue Model
Company DescriptionMahindra & Mahindra Limited provides mobility products and farm solutions in India and internationally. The company operates through Automotive, Farm Equipment, Financial Services, Hospitality, Real Estate, and Others segments. It offers parts and assemblies for aerospace and defense sectors; passenger and commercial vehicles, trucks, buses, vans, cars, utility vehicles, and electric vehicles; watercrafts; motorcycles, scooters, and mopeds; construction equipment, such as backhoe loaders under the Mahindra EarthMaster brand; and road construction equipment comprising motor graders under the Mahindra RoadMaster brand. The company also provides land and naval systems, defense electronics, and security consulting services for defense industry; pre-owned car and car services; and farm equipment. In addition, it operates M2All, an e-commerce platform for various portfolio of products; approximately 100 resorts; and solar PV projects. Further, the company offers financial services comprising retail and other loans, SME finance, housing finance, mutual funds, and life and non-life insurance broking services, as well as vehicle and equipment financing; logistics services; information security and risk management, engineering consulting, and business process management consulting services; information technology services; and power backup solutions, such as diesel and gas generators. Additionally, it engages in the development, management, and operation of commercial complexes; sale of timeshare and vacation ownership; and making, processing, and trading of steel for automotive, non-automotive, and power industries. The company was incorporated in 1945 and is based in Mumbai, India.
How the Company Makes MoneyMahindra & Mahindra Ltd. generates revenue through multiple streams, primarily from its automotive and farm equipment divisions. The automotive segment is the largest contributor, with income derived from the sale of passenger vehicles, commercial vehicles, and spare parts, both in India and abroad. The company's farm equipment division is another crucial revenue source, focusing on the sale of tractors and related machinery. Additionally, M&M's financial services arm provides loans, insurance, and leasing options, which add to its earnings. The company's strategic partnerships and joint ventures, both locally and internationally, help expand its market reach and enhance its product offerings. M&M also benefits from its investments in technology and innovation, which drive efficiency and open new revenue opportunities across its diverse business verticals.
Mahindra & Mahindra Ltd. Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in several key areas, including significant profit growth, market share gains, and improvements in asset quality and EBIT margins. However, challenges persist with international subsidiaries, real estate presales declines, and commodity price concerns. The overall sentiment is balanced with notable achievements and some areas of concern.Q1-2026 Updates
Positive Updates
Strong Consolidated Profit Growth
Consolidated profit after tax is up 24%, indicating a strong financial performance across the group.
Record Market Share in Farm Equipment
Tractor volumes increased by 10%, achieving the highest-ever market share at 45.2%, a gain of 50 basis points.
Significant Growth in Auto Sector
Auto sector profit after tax increased by 32%, with SUV volumes up 22% and revenue market share at 27.3%, up 570 basis points.
Tech Mahindra's EBIT Margin Recovery
Tech Mahindra's EBIT margin recovery is on track, reaching 11.1% this quarter with a target of 15% for F'27.
Mahindra Finance's Asset Quality Focus
Mahindra Finance's assets under management grew by 15%, with asset quality well within thresholds at 3.8%.
Growth in Mahindra Logistics
Mahindra Logistics saw 14% growth, with multiple deal closures and a stronger momentum for the business.
Strong Cash Generation
Despite two rights issues and close to INR 2,500 crores infused into subsidiaries, cash balance grew quarter-over-quarter.
Negative Updates
International Subsidiaries Drag
International subsidiaries experienced a drag on performance due to specific write-downs, resulting in a lower profit after tax growth of 7% year-over-year for the same quarter.
Decline in Real Estate Presales
Real estate experienced a 56% decline in presales, although there was a 4x increase in PAT driven by one-offs.
Impact of Sampo Impairment
Farm sector's PBIT growth was impacted by impairment in the Sampo business, resulting in a 6% year-over-year growth.
Commodity Price Concerns
Rising steel prices by about 6% over the last quarter pose a potential headwind for future quarters.
Urban Sentiment Weakness
Urban sentiment remains weak, affecting the auto business despite stronger rural sentiment.
Company Guidance
During the call, Mahindra Group reported strong financial performance in the first quarter of fiscal year 2026, with consolidated profit after tax increasing by 24% and return on equity at 20.6%. The company achieved a 22% growth in revenue, driven by significant market share expansion in the Auto and Farm sectors. SUV volumes rose by 22%, raising the revenue market share to 27.3%, while tractor volumes increased by 10%, enhancing market share to 45.2%. The Auto business maintained a 10% margin, and the Farm sector achieved a PBIT margin of 19.8%. Tech Mahindra saw an EBIT margin recovery to 11.1%, targeting 15% by fiscal year 2027. Mahindra Finance reported a 15% increase in assets under management and maintained asset quality at 3.8%. Additionally, Mahindra Lifespaces acquired INR 3,500 crores in gross development value, and Susten commissioned 70 megawatts. Despite challenges in international subsidiaries and specific write-downs, the group's consolidated profit after tax reached INR 4,083 crores.Mahindra & Mahindra Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67T | 1.57T | 16.90B | 14.88B | 12.00B | 10.25B |
| Gross Profit | 558.22B | 7.50B | 6.78B | 5.79B | 5.08B | 4.95B |
| EBITDA | 329.15B | 3.47B | 2.97B | 2.37B | 1.85B | 1.79B |
| Net Income | 137.30B | 129.29B | 1.35B | 1.25B | 867.64M | 247.19M |
Balance Sheet | ||||||
| Total Assets | 15.55B | 2.78T | 2.36T | 2.06T | 1.74T | 1.66T |
| Cash, Cash Equivalents and Short-Term Investments | 829.00M | 418.72B | 262.23B | 264.58B | 226.93B | 234.32B |
| Total Debt | 5.48B | 1.30T | 1.07T | 922.47B | 776.05B | 806.25B |
| Total Liabilities | 10.23B | 1.88T | 1.59T | 1.39T | 1.17T | 1.16T |
| Stockholders Equity | 15.55B | 770.38B | 661.91B | 563.66B | 471.23B | 415.82B |
Cash Flow | ||||||
| Free Cash Flow | 49.46B | -72.16B | -155.76B | -133.79B | 32.08B | 119.19B |
| Operating Cash Flow | 35.75B | 31.75B | -56.30B | -70.74B | 92.48B | 181.07B |
| Investing Cash Flow | 4.10B | -186.26B | -55.98B | -85.47B | -32.26B | -184.47B |
| Financing Cash Flow | 211.27B | 158.34B | 122.81B | 159.46B | -58.83B | 4.06B |
Mahindra & Mahindra Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹4.54T | 29.65 | ― | 4.00% | 17.72% | 24.18% | |
70 Outperform | ₹5.16T | 35.48 | ― | 0.82% | 7.53% | -2.90% | |
69 Neutral | ₹1.46T | 6.89 | ― | 0.91% | -1.08% | -34.23% | |
69 Neutral | ₹1.93T | 39.90 | ― | 0.99% | 15.21% | 15.48% | |
64 Neutral | ₹2.56T | 33.65 | ― | 2.29% | 12.27% | -4.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ₹1.91T | 34.55 | ― | 0.89% | -2.62% | -11.26% |
* Consumer Cyclical Sector Average
IN:M&M
Mahindra & Mahindra Ltd.
3,648.45
675.28
22.71%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.