Mahindra & Mahindra Ltd: M&M: Flexing the conglomerate edge

Research evidence excerpt

Mahindra & Mahindra Ltd: M&M: Flexing the conglomerate edge

Venugopal Garre +65 6326 7643 venugopal.garre@bernsteinsg.com 31 July 2026

DETAILS

EXHIBIT 1: Change in Standalone M&M estimates

Rs mn Mar27E Mar28E

Total volume New 1,794,011 1,945,712

Previous 1,794,011 1,945,712

Change 0% 0%

Net Sales New 1,604,602 1,803,423

Previous 1,604,602 1,803,423

EBITDA New 216,194 262,407

Previous 246,681 278,638

Change -12% -6%

PAT New 165,117 200,563

Previous 184,927 209,959

Change -11% -4%

Source: Bernstein analysis and estimates

QUARTERLY PERFORMANCE

Auto delivered strong top-line and earnings growth, with consolidated PBIT up 28% on revenue up 32% and PAT up 21%. In

standalone Auto (SUV & LCV), SUV volumes grew 15% and LCV volumes 20%, but PBIT margin compressed to 8.9% from

10.8% as commodity inflation ran ahead of pricing.

EV business: e-SUV penetration reached 12% in Q1 FY27, the EV segment swung from loss-making to profitable, and EV PBIT

margin improved to 5.3% - continuously narrowing the gap versus the ICE margin base. With BE6’s PLI certification benefits

beginning to accrue from this quarter, EV margin improvement should have further legs through FY27-28.

Farm remains a high-quality, through-cycle franchise. Domestic tractor volumes grew 18% and exports 15%, with core tractor

PBIT margin at 19.2% versus 20.7% a year ago, still within the 17-21% band that has characterized the business through past

cycles. Market share held at 44.9%, near the multi-year high of 45.2%, while international farm subsidiaries continue to be a

drag with PBIT margin at –19.7%, aligning with management’s stated priority of fixing international execution.

A key inflection this quarter is at the consolidated level: consolidated PBT margin has risen steadily over the last 6–7 quarters