Shares of Mahindra & Mahindra Ltd. are likely to remain in focus after the company posted a strong third-quarter performance, with profit growth beating estimates and revenue momentum rebounding following GST revisions on passenger vehicles. Brokerages largely reiterated positive ratings on the stock, citing execution strength and market leadership, though a few trimmed target prices on near-term growth moderation concerns.
The automaker reported a 33% year-on-year rise in standalone net profit to Rs 3,931 crore for the October-December quarter, compared with Rs 2,964 crore a year ago. The figure was marginally ahead of Bloomberg consensus estimates of Rs 3,885 crore.
Revenue from operations climbed 26% to Rs 38,517 crore from Rs 30,538 crore last year, signalling a pickup after growth dipped below 20% in the previous quarter. The improvement followed GST rate cuts on select models that took effect in late September.
EBITDA rose 20.7% to Rs 5,293 crore but fell short of Bloomberg estimates of Rs 5,721 crore. EBITDA margins softened to 13.7% from 14.4% a year ago. The company also provided Rs 98 crore as a one-time cost related to the New Labour Codes.
M&M Q3 Results (Standalone, YoY)
- Revenue up 26% at Rs 38,517 crore vs Rs 30,538 crore
- EBITDA up 20.7% at Rs 5,293 crore vs Rs 4,384 crore
- Margin at 13.7% vs 14.4%
- Profit up 32.6% at Rs 3,931 crore vs Rs 2,964 crore
Brokerages on Mahindra & Mahindra
Jefferies
- Maintains Buy; Target retained at Rs 4,500
- Another strong quarter; 15th consecutive quarter of double-digit EBITDA growth
- Benefitting from strong industry demand and market share gains
- Sees uncertainty in FY27 tractor outlook due to high base
- Expects core EPS to rise 30% YoY in FY26 and 15% CAGR over FY25-28E
Citi
- Maintains Buy; Target retained at Rs 4,230
- UV capacity expansion and ramp-up plans remain on track
- Leadership in tractors intact; gaining traction in utility vehicles
- Expanding EV portfolio to aid future market-share gains
Morgan Stanley
- Maintains Overweight; Cuts Target to Rs 4,358 from Rs 4,407
- FY27 may see moderation in tractor and UV growth; turnaround expected in FY28
- Market shares likely to remain stable
- No new EV launches in CY26; focus on ramping up current portfolio
- Entire portfolio expected to be covered under PLI incentives by Q1FY27
Kotak Institutional Equities
- Maintains Buy; Cuts Target to Rs 4,300 from Rs 4,350
- Q3 standalone EBITDA 5% below estimates
- Continues to execute well while maintaining leadership across segments
ALSO READ: M&M Q3 Results: Profit Meets Estimates, Revenue Rises 26% As SUV Volumes Boom
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