Mahindra & Mahindra (MM IN) Is the recent rise in EV penetration sustainable?

Research evidence excerpt

Mahindra & Mahindra (MM IN) Is the recent rise in EV penetration sustainable?

Equities ● Automobiles

29 June 2026

Financials & valuation: Mahindra & Mahindra Buy

Financial statements Valuation data

Year to 03/2026a 03/2027e 03/2028e 03/2029e Year to 03/2026a 03/2027e 03/2028e 03/2029e

Profit & loss summary (INRm) EV/sales 2.2 2.0 1.7 1.5

Revenue 1,455,758 1,647,236 1,811,144 1,938,837 EV/EBITDA 15.4 14.0 12.2 10.7

EBITDA 209,775 231,184 257,182 281,131 EV/IC 37.8 14.7 10.5 8.6

Depreciation & amortisation -42,927 -49,417 -54,334 -58,165 PE* 24.5 22.9 20.4 18.5

Operating profit/EBIT 166,848 181,767 202,848 222,966 PB 5.1 4.3 3.6 3.0

Net interest -2,496 -2,335 -2,335 -875 FCF yield (%) 4.3 -0.1 1.7 2.9

PBT 209,414 218,667 245,229 269,912 Dividend yield (%) 0.3 0.3 0.3 0.3

HSBC PBT 209,414 218,667 245,229 269,912 * Based on HSBC EPS (diluted)

Taxation -49,853 -51,387 -57,629 -63,429

Net profit 156,389 167,280 187,600 206,482

HSBC net profit 156,389 167,280 187,600 206,482 ESG metrics

Cash flow summary (INRm) Environmental Indicators 03/2025a Governance Indicators 03/2026a

Cash flow from operations 227,585 128,493 209,521 226,234 GHG emission intensity* 23.1 No. of board members 10

Capex -63,079 -131,779 -144,892 -116,330 Energy intensity* 58.0 Average board tenure (years) [n/a]

Cash flow from investment -197,331 -122,544 -100,176 -68,509 CO2 reduction policy Yes Female board members (%) 30

Dividends -31,419 -14,377 -14,377 -14,377 Social Indicators 03/2025a Board members independence (%) 50

Change in net debt -91,128 10,763 -92,633 -142,472

Employee costs as % of revenues 4.2FCF equity 164,506 -3,286 64,630 109,904

Balance sheet summary (INRm) Employee turnover (%) 8.2

Diversity policy Yes

Intangible fixed assets 34,005 34,005 34,005 34,005