Mahindra and Mahindra (M&M) reported double-digit growth in production and sales for the quarter ended September 30, 2026, according to its latest business update.
The automaker's production rose 19.2% year-on-year to 1.22 lakh units during the quarter, while sales grew 16.3% from a year earlier to 1.14 lakh units.
In the first quarter of the current fiscal, M&M posted a mixed set of figures, with net profit and revenue beating Street estimates, while operating performance remained below expectations.
The auto giant's standalone net profit jumped 6.8% year-on-year (YoY) to Rs 3,685 crore in the April to June quarter of FY27, exceeding the Bloomberg consensus estimate of Rs 3,569 crore.In the same period last year, the company had reported a profit of Rs 3,450 crore.
Revenue increased 23% YoY to Rs 41,920 crore, marginally beating the Street estimate of Rs 41,845 crore. The topline stood at Rs 34,083 crore in the year-ago quarter. The operations fell short of expectations as earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 7.9% YoY to Rs 5,111 crore, missing the consensus estimate of Rs 5,353 crore. EBITDA margin contracted to 12.2% from 13.9% a year earlier, below the estimated 12.8%.
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Consolidated revenue from operations surged Rs 57,533.4 crore in the June quarter of FY27, from Rs 45,435.8 crore in the June quarter of FY26. The Profit After Tax (PAT) also surged to Rs 5,997.56 crore, from Rs 4,376.5 crore a year ago.
While M&M's June-quarter earnings may have exceeded Street estimates on profit and revenue, but brokerages believe the bigger story lies ahead. While Citi said the company's EBITDA was marginally below expectations and profit was supported by higher other income, it remains cautiously optimistic on the outlook, citing continued momentum in electric vehicles and positive rural sentiment.
Morgan Stanley, meanwhile, flagged near-term pressure on farm margins as it expects earnings to recover in the second half of FY27. Macquarie, on the other hand, said M&M remains well positioned to navigate macro headwinds with a strong SUV pipeline and resilient tractor demand.
Kotak Securities also described the quarter as a marginal miss due to weaker automotive profitability amid commodity headwinds, though it retained its positive stance on the stock.
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