M&M reports Q4 beat, posts industry-leading growth; should you buy, sell, or hold?

The company retained the No. 1 position in the SUV revenue market share category

Auto major Mahindra & Mahindra Ltd.'s shares gained in early trade on Tuesday, May 6, after the auto player reported an industry-leading earnings show for the three months ended March, prompting brokerages to reiterate their bullishness on the carmaker.

During the quarter, it reported a 22 percent jump in standalone net profit at Rs 2,437 crore for the quarter ended March 31, 2025. The firm's revenue from operations rose 24 percent to Rs 31,609 crore in Q4FY25 as against Rs 25,434 crore in Q4FY24.

Mahindra & Mahindra expects to grow faster than the market in FY26, backed by strong demand for both its internal combustion engine (ICE) and electric vehicle (EV) portfolios. The company said cannibalisation between ICE and EV models has been significantly lower than expected, with many electric vehicle buyers being new to the Mahindra brand altogether.

"It’s a very low level of cannibalisation at this point. Many customers buying EVs were not Mahindra owners—or even considering Mahindra—before," Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sectors, said in a post-result earnings call. This trend, M&M believes, is helping drive incremental volumes rather than eating into existing ICE sales.

At 9.18 am, shares were quoting Rs 3,095, higher by 2.4 percent in trade on the NSE.

Should you buy, sell, or hold M&M shares?

Motilal Oswal 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," said the brokerage, maintaining its 'buy' rating, with an increased target price of Rs 3,482 per share.

Japan's Nomura Holdings also hiked its price target from Rs 3,681 to Rs 3,779 apiece, implying a 20 percent upside, keeping its 'buy' tag intact. "With the strong new launch plan and capacity expansion, we expect M&M to continue driving industry-leading growth over next few years."

Over FY25–27E, Nuvama Institutional Equities expects the auto segment’s revenue CAGR to be

16 percent on healthy demand for Thar, XUV 3XO and XEV.9e along with a pipeline of new models. The farm segment’s revenue shall clock a 10 percent CAGR nurtured by share gains, benign policies and robust exports, it added. The brokerage maintained its 'buy' call, with an unchanged price target of Rs 3,700.

Kotak Institutional Equities reiterated its 'buy' rating on Mahindra & Mahindra with a target price of Rs 3,500 per share, amid strong momentum across business segments and a positive FY26 outlook.

Jefferies also retained its 'buy' call on M&M but revised its target price to Rs 4,000 from Rs 4,075. With a strong growth trajectory and an improving business profile, Jefferies sees further re-rating potential, calling M&M one of its top picks.

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