M&M expects to outpace industry in FY26, sees EV buyers as incremental, not cannibalising ICE sales

Given the recent rally, M&M shares have risen over 16 percent in the last one month.

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.

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The company also pointed to specific model-related tailwinds that will bolster full-year growth in FY26. It said the Thar Roxx variant was available for only half of last year, while the XUV3XO was launched two months into the previous fiscal. This year, both models will contribute to a full 12 months of sales, and since neither is a replacement for older models, the growth will be entirely additive.

"We’re also seeing strong momentum in the Thar three-door, even with Roxx in the market—these are appealing to completely different segments," the management said, reinforcing confidence in the diversity and strength of its product portfolio.

Exports are also gaining traction, particularly in markets like South Africa and Australia, driven by the strength of new product launches. “It’s the strength of the product portfolio that’s driving it,” said Anish Shah, Group CEO and MD. He added that, building on this momentum, Mahindra expects to outperform the industry in FY26, just as it did last year, despite a challenging market environment.

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Furthermore, it is pushing ahead with its electric vehicle plans through a focused product roadmap and a bid to speed up electrification. The company, among India’s key EV players, said it delivered 6,300 electric passenger vehicles in just 40 days, signalling growing traction in the segment.

Mahindra announced plans to unveil a new EV platform on August 15, further cementing its long-term commitment to electrification. By 2030, the company aims to launch seven internal combustion engine (ICE) models, five battery electric vehicles (BEVs), and five light commercial vehicles (LCVs).

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. The company's revenue from operations rose 24 percent to Rs 31,609 crore in Q4FY25 as against Rs 25,434 crore in Q4FY24.

M&M shares closed at Rs 3,024, higher by 3.34 percent from the last close on the NSE. Given the recent rally, M&M shares have risen over 16 percent in the last one month.