M&M gains 5% after Q1; analysts remain bullish, see over 20% upside

Mahindra & Mahindra Q1 results review: Mahindra & Mahindra Ltd.'s share price continued to gained on Friday as the stock surged nearly 5 per cent its after Q1FY27 results. The stock climbed 4 per cent Thursday. Post the results analysts remained upbeat, noting that the automaker delivered a healthy quarter.

 

Mahindra & Mahindra's counter at 12:43 AM was trading 5.13 per cent higher at ₹3,452 per share on NSE. In comparison, Nifty 50 was up 0.34 per cent at 24,399.30. In intraday trade, the stock rose 5.3 per cent to touch the day's high at ₹3,457 per share.

 

Mahindra & Mahindra Q1 results highlights:

• M&M today reported a 33.6 per cent year-on-year growth in consolidated net profit at ₹5,454.54 crore for the quarter ended June 30, 2026. The same stood at ₹4,083.32 crore in the same period a year ago.
• Revenue from operations increased by 26.6 per cent to ₹57,533.44 crore in Q1FY27 from ₹45,435.88 crore in Q1FY26.
• In SUVs, the company's revenue market share was 25 per cent, with sales volume up 15 per cent in the June quarter. 
• LCVs, Tractors and Electric 3-wheelers market share stood at 52 per cent, 44.9 per cent and 39.5 per cent, M&M said.

 

Brokerages’ view on Mahindra & Mahindra post Q1 Results

PL Capital

The brokerage noted that Mahindra & Mahindra’s Q1FY27 standalone operating revenue and PAT were modestly above estimates, while margins missed estimates as it was impacted by raw material inflation, supply chain disruption, and manpower issues. 

 

It further highlighted that the management is taking aggressive cost reduction measures and maintained FY27 volume growth guidance for its SUVs at mid-to-high teens, tractor industry at mid-single digits, and LCV industry at high-single digits. "Operating leverage from accelerating BEV volumes and pricing should improve profitability along with the Growth Gems contributing to the group’s topline and bottomline," PL Capital said.

 

PL Capital has reiterated its 'Buy' rating on Mahindra & Mahindra and raised the target price marginally to ₹3,950 from ₹3,900. The valuation is based on 24 times FY28 estimated standalone earnings, along with the value of M&M's stake in its subsidiaries.

 

Choice Institutional Equities 

 

The brokerage noted that M&M delivered a healthy quarter in Q1FY27, driven by strong performance across its Auto and Farm businesses, however, elevated commodity inflation impacted the margin. 

 

Choice added that the Auto segment continued to outperform, with SUV volumes rising 15 per cent Y-o-Y to 175k units, while retaining its leadership with 25.0 per cent SUV revenue market share. Growth was supported by healthy demand for premium SUVs, favourable product mix, and strong traction in recent launches.

 

Choice Broking has reiterated its 'Buy' rating on Mahindra & Mahindra and raised its target price to ₹4,150. The brokerage values the company at 25 times its estimated FY28 earnings, while also factoring in the value of its subsidiaries.

   

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