Mahindra & Mahindra (MAHM.BO): 1QFY27 Results: EBITDA Marginally Below Estimate, PAT Boosted by Higher Other Income

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Mahindra & Mahindra (MAHM.BO): 1QFY27 Results: EBITDA Marginally Below Estimate, PAT Boosted by Higher Other Income

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30 Jul 2026 14:27:02 ET │ 17 pages

Mahindra & Mahindra (MAHM.BO)

1QFY27 Results: EBITDA Marginally Below Estimate, PAT Boosted by

Higher Other Income

CITI'S TAKE

M&M’s 1QFY27 EBITDA was slightly below estimate, primarily due to weaker

auto-division profitability. Mgmt outlook is positive on demand. In Auto

Buysegment, EVs continue to drive growth. UV capacity expansion is underway.

In the farm equipment segment, rural sentiment is positive given 1) higher Price (30 Jul 26 15:30) Rs3,278.90

mechanization, 2) healthy rabi cash flows, 3) recovery in monsoon, and 4) Target price Rs4,260.00↓improved reservoir levels. Over the near-term, margins face commodity cost

headwinds, esp in the tractor segment as rubber and steel (larger share of from Rs4,470.00

BOM) are not hedged. We trim our earnings estimates to reflect elevated Expected share price

costs. Our SOTP-based TP changes to Rs4,260 from Rs4,470, as we 29.9% return

incorporate the latest share prices for M&M’s listed subs. Maintain Buy.

Expected dividend yield 1.0%

1QFY27 results — Revenue at Rs419bn (+23%YoY; +6%QoQ) was in line with our Expected total return 31.0%

estimate. Gross margin at 22% (-190bpsYoY; -160bpsQoQ) was above our estimate Market Cap Rs3,938,290M

of 21.8%. However, EBITDA at Rs51bn (+5%YoY; -8%QoQ) was ~3% below our US$41,173Mestimate due to higher other expenses. Higher other income and lower depreciation

supported PAT, which at Rs36.8bn (+7%YoY; -1%QoQ) was 5% above estimate.

Outlook cautiously optimistic — In tractors, mgmt. noted that on-the-ground

sentiment is better than perceived. However, commodity cost pressures have not Price Performance