M&M rallies 8% in 2 days, nears record high. Should you buy, hold or sell?

M&M reported a better-than-expected operating performance in Q4FY25, led by a strong margin beat in the farm equipment sector segment.

Mahindra & Mahindra share price today: Shares of Mahindra & Mahindra (M&M) have continued their upward movement, surging 4.6 per cent to ₹3,159 on the BSE in Tuesday’s intra-day trade, extending their Monday’s 4 per cent rally after the company delivered a strong operational performance in March 2025 quarter (Q4FY25).

 

The stock price of the automaker is quoting close to its all-time high level of ₹3,276.30 touched on February 10, 2025. It has recovered 34 per cent from its previous month low of ₹2,360.45 touched on April 7, 2025. 

 

At 09:40 am, M&M was quoting 4 per cent higher at ₹3,140, as compared to 0.07 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped 1.5 times. A combined nearly 2 million equity shares have changed hands on the NSE and BSE.  FOLLOW STOCK MARKET LIVE UPDATES TODAY

 

 

M&M Q4 result 2025

 

M&M reported a 22 per cent rise in standalone profit after tax (PAT) at ₹2,437 crore for the fourth quarter (Q4) of the financial year 2024-25 (FY25), from ₹2,000 crore reported during the same period last year. Sequentially, net profit for the fourth quarter dropped 19 per cent from ₹2,964 crore. 

 

Revenue from operations on a standalone basis grew by 25 per cent to ₹31,353 crore year-on-year (YoY), from ₹25,183 crore. Sequentially, revenue saw a marginal rise of 3 per cent from ₹31,353 crore.

 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin expanded 180bp YoY to 14.9 per cent, ahead of the brokerage firm’s estimate of 14.1 per cent. The beat was driven by improved ASP and better performance in the farm equipment sector (FES) segment.

 

M&M continued its outstanding performance for the year in Q4FY25, with a significant gain of 310 bps YoY in SUV revenue share, and 480 bps YoY increase in LCV (< 3.5T) market share. In Tractors, the company reached it’s highest-ever Q4 market share of 41.2 per cent, gaining 180 bps YoY.

 

Brokerages view

Motilal Oswal Financial Services

 

M&M reported a better-than-expected operating performance in Q4FY25, led by a strong margin beat in the FES segment. The QoQ margin improvement was particularly commendable as it came in a seasonally weak quarter. Auto segment margins, adjusted for contract manufacturing at Mahindra Electric Automobile (MEAL), came in at 10 per cent (+30bp QoQ).

 

The brokerage firm believes M&M is well-placed to outperform across its core businesses, led by a healthy recovery in rural areas and new product launches across both the UVs and tractors segments. 

 

“Given the sustained demand momentum in UVs and tractors, we have raised our earnings estimates by 4 per cent/ 6 per cent for FY26/ FY27E. We estimate M&M to post a compounded annual growth rate (CAGR) of ~13 per cent/ 13 per cent/ 18 per cent in revenue/ EBITDA/ PAT over FY25-27E,” Motilal Oswal Financial Services said in result update.

 

While M&M has outperformed its own targets of earnings growth and RoE of 18 per cent in each of FY24 and FY25, it remains committed to delivering 15-20 per cent EPS growth and 18 per cent ROE, ensuring sustained profitability and shareholder value. The brokerage firm reiterates 'Buy' rating on M&M with a target price of ₹3,482 (based on FY27E SOTP).  ALSO READ | YES Bank shares rally 10%, hover near upper circuit: What's driving surge?

 

Emkay Global Financial Services

 

M&M’s Q4 results were operationally healthy, with margin expansion in Autos and Tractors on like-to-like basis QoQ (Auto margin up by ~30bps to 10 per cent, Tractor margin up by ~130bps to 19.4 per cent). 

 

M&M expects its outperformance versus the underlying PV industry to continue, with full-year benefit of recent launches (Thar Roxx, XUV 3X0) and limited cannibalisation of recently introduced BEVs. It outlined plans for more new launches in CY26 (1 ICE SUV, 2 BEVs); tractor industry outlook for FY26 stands at a high single digit. 

 

The brokerage firm believes that while the announcement for a new ICE SUV is welcome, bulk of the growth in Autos ahead would be driven by BEVs (margin-decretive in the near-to-medium term), with FY25-27E EBIT CAGR at a modest ~7 per cent. Analysts at the brokerage firm raise FY26E/ 27E core EPS by ~6.5 per cent/ 5 per cent on higher volume/ margin (in core Auto business, and lower margin drag from BEVs in SA, as this would be captured in EV subsidiary MEAL). 

 

Analysts maintain 'Add' while revising up SoTP-based target price to ₹3,000 from ₹2,700, at 25x PER for the core business (risk-reward is balanced).

 

Tractor industry performance 

 

The tractor industry has been witnessing good momentum on account of favorable weather conditions, good reservoir levels, strong Rabi outlook and positive terms of trade for farmers. The harvest season is progressing very well and is expected to conclude shortly. Bolstered by the Chaitra Navratri festival in the first week of April, retail momentum is very strong. This is well supported by good crop prices and high procurement at Mandis, leading to good cash flows with farmers. IMD's prediction of above normal southwest monsoon is hugely positive for the overall Agri economy and tractor industry, M&M said.  ALSO READ | CCL Products share price zooms 16% on announcing Q4 results, dividend

 

About Mahindra & Mahindra

 

Mahindra & Mahindra (M&M) is a conglomerate with presence in auto, IT, financial services, logistics, hospitality and real estate among others. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. M&M is India’s largest tractor manufacturer (~44 per cent FY25 market share) and the second largest commercial vehicle (CV), fourth largest passenger vehicle (PV) maker (28.1 per cent, 12.8 percent - FY25 market share).