Mahindra & Mahindra shares in focus after Q1 profit jumps 24% YoY to Rs 4,083 crore. Should you buy, sell or hold?
ADVERTISEMENT Revenue for the quarter stood at Rs 45,436 crore, up 23% from Rs 37,010 crore in Q1FY25. On a sequential basis, profit rose 24% from Rs 3,295 crore in Q4FY25, while revenue increased 7% from Rs 42,586 crore.
The company posted strong operational performance across segments, with the auto and farm equipment businesses continuing to drive growth and maintain margins, leading to a 20% rise in profits, according to a company statement.
M&M retained leadership in the SUV segment, achieving a 27.3% revenue market share—up 570 basis points YoY. SUV volumes grew 22% during the quarter. In the LCV (3.5T) category, the company held a 54.2% market share, up 340 bps.In the farm segment, M&M claimed a 45.2% market share in tractors, up 50 bps YoY, and a 38.7% market share in electric three-wheelers.
ADVERTISEMENT Nuvama has maintained a 'Buy' rating with a target price of Rs 3,700.The brokerage expects the auto segment to clock a 14% CAGR between FY25–28E, driven by strong demand and new model launches. The farm segment is projected to grow at 10% CAGR, aided by market share gains and supportive policies. It also forecasts a 13% CAGR in revenue and core earnings, with RoIC expected to stay above 55%. The target price is based on 25x September 2027 core EPS.
ADVERTISEMENT Avendus has also retained a 'Buy' rating but revised its target price to Rs 3,650 from Rs 3,700.The firm is optimistic about M&M's EV plans via Born EV platforms BE 6 and XEV 9e. The core ICE business is expected to remain resilient, backed by capacity expansion and a strong order book. Automotive volume CAGR is projected at 19% for FY25–27E, while tractor volume is expected to grow at a mid-single-digit rate. However, rising EV contribution may pressure margins. The target price is based on a 27x FY27E EPS under the SOTP valuation model.
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