Mahindra & Mahindra (M&M) reported stellar Q3 FY26 results, with consolidated PAT up 54% YoY to ₹4,675 crore (excluding one-off labour code impact) and revenue surging 26% to ₹52,100 crore, driven by robust SUV/UV demand, tractor volumes and financial services growth. Standalone profit rose 33% to ₹3,931 crore.

M&M Q3 FY26 results – Headline numbers

• Standalone:

  • Net profit (PAT): ₹3,931 crore, up 33% YoY.
  • Revenue from operations: ₹38,942 crore, up 26% YoY.
  • EBITDA: ₹5,717 crore, up 19% YoY.
• Consolidated:
  • PAT: ₹4,675 crore, up 54% YoY (excl. labour code change; reported ~47% growth).
  • Revenue: ₹52,100 crore, up 26% YoY.
  • RoE (annualised): 20.1%.
• Volumes:
  • Total vehicle volumes: 302,238 units (+23% YoY), including subsidiaries.
  • SUV/UV volumes: 179,000 units.

Segment performance: Auto & Farm lead growth

Auto segment (SUVs, LCV, passenger vehicles)

• Total volumes: 302k units (+23% YoY), with SUV revenue market share at 24.1% (+90 bps YoY).
• Standalone PBIT: ₹2,684 crore (+27% YoY), PBIT margin 9.7% (10.6% excl. eSUV contract mfg., +90 bps).
• Consolidated: Revenue ₹30,370 crore (+30% YoY), PAT ₹1,993 crore (+42% YoY).
• Highlights: Strong response to new launches like XEV 9S and XUV 7XO; LCV market share gains (+10 bps).

Farm segment (tractors)

• Tractor volumes: 149,567–150k units (+23% YoY).
• Market share: 44.0–44.1% (YTD; flat to +20 bps YoY).
• Standalone PBIT: ₹2,061 crore (+41% YoY), margin 20.5% (+240 bps YoY).
• Consolidated: Revenue ₹11,501 crore (+21% YoY), PAT ₹1,044 crore (+7% YoY).

Other businesses

• Financial services: PAT up 97% YoY, strong asset quality.
• Tech Mahindra: Highest TCV deal wins, EBIT margin up 290 bps.
• Growth gems: Mahindra Logistics first profitable quarter; Lifespaces PAT +5x.

Strengths from M&M’s Q3 FY26 performance

• SUV leadership strengthening: 24.1% revenue market share (+90 bps YoY) with 179k UV volumes (+23% YoY), driven by blockbuster launches like XEV 9S and XUV 7XO.
• Tractor dominance intact: 44% market share, volumes up 23% YoY and margins expanding sharply to 20.5% (+240 bps), reflecting rural recovery and premiumisation.
• Broad‑based group momentum: Consolidated PAT +54%, revenue +26%, with financial services (+97% PAT), TechM (EBIT +290 bps) and growth gems (Logistics profitable, Lifespaces +5x PAT) all firing.
• Margin resilience: Auto PBIT margin 10.6% excl. eSUV (+90 bps), farm 20.5% (+240 bps), EBITDA +19% despite scale‑up, showing operating leverage.
• RoE at peak levels: Annualised 20.1% RoE, underscoring capital efficiency across auto, farm and services.

Risks and monitorables

• EV transition execution: Rapid ramp‑up in eSUVs like XEV 9S carries supply chain, pricing and competition risks in a crowded EV space.
• Rural cycle sensitivity: Tractor growth (+23%) assumes sustained rural demand; any monsoon weakness or input cost spikes could hurt volumes/margins.
• High valuations post‑rally: M&M trades at premium multiples after strong run; any macro slowdown or margin compression could trigger de‑rating.
• Group complexity: Reliance on diverse arms (TechM, finance, logistics) introduces sector‑specific risks and execution variability.
• Input cost volatility: Steel, batteries and commodities exposure could pressure margins if global prices rise sharply.

FAQs

1. What was M&M’s consolidated PAT in Q3 FY26?
₹4,675 crore, up 54% YoY (excl. labour code impact; reported ~47% growth), on revenue of ₹52,100 crore (+26% YoY).

2. How did the standalone profit and revenue perform?
Standalone PAT ₹3,931 crore (+33% YoY), revenue ₹38,942 crore (+26% YoY), EBITDA ₹5,717 crore (+19% YoY).

3. What drove the auto segment growth?
Total volumes 302k units (+23% YoY), SUV revenue share 24.1% (+90 bps), with strong launches like XEV 9S and XUV 7XO boosting consolidated auto revenue to ₹30,370 crore (+30% YoY).

4. How was the tractor/farm business?
Volumes 150k units (+23% YoY), market share ~44%, PBIT margin 20.5% (+240 bps YoY), consolidated revenue ₹11,501 crore (+21% YoY).

5. What about other group businesses?
Financial services PAT +97% YoY; Tech Mahindra EBIT +290 bps; Mahindra Logistics first profitable quarter after 11; Lifespaces PAT +5x.

6. Is M&M a good buy after Q3 FY26 results?
Q3 reinforces M&M’s position as a consumption and infra play, but premium valuations warrant caution; suitable for investors betting on sustained SUV/EV growth and rural recovery. This is not personalised advice.