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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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Select Model
Rating:68Neutral
Price Target:
₹3,904.00
▲(17.07% Upside)
Action:ReiteratedDate:11/05/25
Mahindra & Mahindra Ltd. benefits from strong financial performance and positive earnings call sentiment, indicating robust growth and profitability. However, the lack of technical analysis data and challenges in cash flow management slightly temper the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth across all segments indicates strong market demand and effective business strategies, supporting long-term expansion.
Market Share Expansion
Gaining market share in key segments like SUVs strengthens competitive positioning, enhancing brand presence and customer loyalty.
Profitability Improvement
Significant profit growth in core segments reflects operational efficiency and effective cost management, boosting overall financial health.
Negative Factors
Cash Flow Challenges
Negative free cash flow growth suggests liquidity constraints, which could impact the company's ability to invest in growth opportunities.
Reliance on Debt Financing
High reliance on debt financing can increase financial risk, potentially affecting the company's long-term stability and flexibility.
GST Transition Impact
GST transition delays in vehicle deliveries could disrupt revenue streams and operational efficiency, affecting short-term performance.
Mahindra & Mahindra Ltd. (M&M) vs. iShares MSCI India ETF (INDA)
Market Cap
₹4.15T
Dividend Yield3.05%
Average Volume (3M)107.78K
Price to Earnings (P/E)24.1
Beta (1Y)1.78
Revenue Growth20.60%
EPS Growth19.80%
CountryIN
Employees260,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)33.35
Shares Outstanding1,243,528,800
10 Day Avg. Volume105,861
30 Day Avg. Volume107,779
Financial Highlights & Ratios
PEG Ratio2.26
Price to Book (P/B)4.50
Price to Sales (P/S)2.16
P/FCF Ratio80.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹4,419.75Price Target Upside32.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)127.56
Revenue Forecast (FY)₹1.44T
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 generates revenue primarily through the sale of vehicles, including passenger cars, commercial vehicles, and two-wheelers, as well as farm equipment like tractors and agricultural implements. The automotive segment contributes significantly to the company's revenue, supported by strong demand in both domestic and international markets. Additionally, M&M earns revenue from its financial services division, which offers loans and insurance products to customers. The company also has strategic partnerships and joint ventures, such as collaborations with global automotive manufacturers, which enhance its market reach and product development capabilities. Moreover, M&M invests in sustainable practices and innovation, creating new revenue streams in electric vehicles and connected mobility solutions, aligning with global trends towards greener technologies.
Mahindra & Mahindra Ltd. Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 22, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant growth in revenue and profitability across multiple segments, notably the Farm, Auto, and Finance businesses. While there were challenges related to GST transitions and one-off tax payments, the positive aspects of growth and market share gains suggest a robust outlook.Q2-2026 Updates
Positive Updates
Strong Consolidated Revenue and Profit Growth
Consolidated revenue grew by 22% year-over-year, with profit operating up 28% for the quarter and 29% year-to-date. This strong performance was driven by contributions across all business segments.
Farm and Auto Business Performance
Farm profits increased by 54%, and Auto profits rose by 14% despite being impacted by the GST transition. Tractor volume was strong at 32%, and Auto volumes increased by 13%.
Mahindra Finance and Tech Mahindra Performance
Mahindra Finance reported a 45% operating profit growth, marking the end of Phase 1 for the business transformation. Tech Mahindra's profits rose by 35%, excluding one-off gains.
Market Share and Export Growth
SUV market share increased by 390 basis points year-over-year, with LCV market share rising by 100 basis points to 53.2%. Export momentum showed a 40% growth.
Growth in Real Estate and Aero Segments
Real estate presales increased by 89%, and the Aero segment secured a significant win with the Airbus helicopter fuselage supply deal.
Negative Updates
Impact of GST Transition on Auto Segment
Auto profits were impacted by the GST transition as vehicle deliveries were postponed, resulting in a potentially higher growth number.
Challenges in Hospitality and Logistics Segments
Hospitality segment was affected by weather-related issues, while Logistics is still undergoing improvements with significant white space reduction needed.
One-off Tax Payments Impacting Profit
A one-time tax payment of INR 217 crores related to the SML Isuzu transaction was noted, affecting overall profitability.
Company Guidance
During the Quarter 2 Analyst Meet of Mahindra & Mahindra Limited, several key metrics highlighting the company's performance were discussed. The Farm business reported a 54% increase in profits, while the Auto segment saw a 14% rise, despite being impacted by the GST transition, which delayed vehicle deliveries. Mahindra Finance achieved a 45% growth in operating profit, and Tech Mahindra's profits increased by 35%. Consolidated profit after tax (PAT) grew by 28%, with revenue up 22% year-over-year, maintaining the same growth year-to-date. The company's return on equity (ROE) was 19%, although future expectations are moderated to around 18%. Tractor volumes were strong at a 32% increase, while Auto volumes grew by 13%. The company also managed to expand its market share significantly, with the Auto segment gaining 390 basis points year-over-year. Mahindra & Mahindra Ltd. Financial Statement Overview
Summary
Mahindra & Mahindra Ltd. shows strong revenue growth and profitability, with effective use of equity. However, challenges in cash flow management and reliance on debt financing present risks.Income Statement
Mahindra & Mahindra Ltd. has shown impressive revenue growth with a rate of 98.57% in the latest year, indicating strong market demand and expansion. The gross profit margin and net profit margin have improved significantly, reflecting enhanced operational efficiency and profitability. However, the EBIT and EBITDA margins suggest room for further improvement in cost management.85
Very Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity is strong, showcasing effective use of shareholder funds. However, the equity ratio suggests a reliance on debt financing, which could pose risks if not managed carefully.70
Positive
Cash Flow
The cash flow statement reveals challenges with negative free cash flow growth, indicating potential liquidity issues. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from its operations, but the negative free cash flow to net income ratio highlights the need for better cash management strategies.60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67T | 1.57T | 1.37T | 1.20T | 896.54B | 735.82B |
| Gross Profit | 558.22B | 592.67B | 516.01B | 443.95B | 228.91B | 362.65B |
| EBITDA | 329.15B | 321.84B | 268.81B | 2.37B | 160.27B | 1.79B |
| Net Income | 137.30B | 129.29B | 112.69B | 102.81B | 65.77B | 18.12B |
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 | -890.98B | 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 | 121.18B |
| 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹4.52T | 31.31 | ― | 0.81% | 10.62% | 4.43% | |
76 Outperform | ₹2.14T | 41.03 | ― | 0.96% | 25.37% | 19.52% | |
68 Neutral | ₹4.15T | 24.14 | ― | 3.05% | 20.60% | 19.80% | |
65 Neutral | ₹1.75T | 30.36 | ― | 0.91% | -0.35% | -4.21% | |
64 Neutral | ₹2.73T | 31.34 | ― | 2.31% | 11.83% | 13.79% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
IN:M&M
Mahindra & Mahindra Ltd.
3,334.75
743.32
28.68%
IN:BAJAJ.AUTO
Bajaj Auto Limited
9,778.10
2,257.94
30.03%
IN:EICHERMOT
Eicher Motors Limited
7,817.00
2,974.66
61.43%
IN:HYUNDAI
Hyundai Motor India Limited
2,148.55
465.70
27.67%
IN:MARUTI
Maruti Suzuki India Limited
14,380.60
2,737.95
23.52%
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.