Mahindra and Mahindra (MM IN) (Buy) - Strong growth outlook intact

Research evidence excerpt

Mahindra and Mahindra (MM IN) (Buy) - Strong growth outlook intact

Global Markets Research

Mahindra and Mahindra MAHM.NS MM IN 4 June 2026

EQUITY: AUTOS & AUTO PARTS

RatingStrong growth outlook intact Remains Buy

Target priceCapacity and model cycle to drive growth; maintain as our Remains INR 4,580

top pick and Buy rating

Closing price INR 3,016 4 June 2026M&MattendedtheNomuraInvestmentForumAsia(NIFA)2026.Keytakeawaysarebelow::

SUVs: M&M is optimistic on the demand outlook of mid-to-high teens volume growth for SUVs in Implied upside +51.9%FY27E. Most of the models have high demand, but the supplies have been affected over the past

two months. M&M expects this issue to be resolved in coming months. M&M expects SUV Market Cap (USD mn) 37,811.8

capacity to expand from 64.5k/mth (56.5k ICE+ 8k EVs ) to 68k by Sep-26 and 82k by Mar-26 (70k ADT (USD mn) 122.6

ICE + 12k EVs). The launch of the NU-IQ platform will be supported by this capacity expansion. The

company plans to launch 10 ICEs and 6BEVs over FY27-31E. The Nagpur plant will eventually

have capacity of 500k SUVs and 100k tractors which will commence operation in 2028. Relative performance chart

EVs: 1) Demand is strong and ASPs are much higher than ICE ASPs. 70% of M&M’s BEVs have

driven 1,000kms/month which means they are being used as primary vehicles. 80% of BEV owners

are first-time buyers of M&M, thus bringing a new set of customers to the brand. The highest

demand is for the 79KWH variant due to a high range. 2) The EV business is profitable with

EBIT margin of ~5% in 4QFY26. The company currently gets production linked incentive (PLI)

scheme income which supports margins and should continue till FY28E. This should help offset the

scale disadvantage for BEVs.