M&M shares fall 2% after Q3 results: Brokerages remain mixed; check latest target prices

Mahindra & Mahindra share price

• Mahindra & Mahindra shares fell over 2 percent after Q3 FY26 results release
• Q3 net profit rose 47 percent YoY to Rs 4,675 crore; revenue up 24 percent YoY
• Brokerages mostly maintained 'Buy' ratings, citing strong growth and outlook

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The shares of Mahindra & Mahindra (M&M) dropped more than 2 percent on February 12 after the company released its results for the October-December quarter of the ongoing financial year 2026.

M&M shares closed at Rs 3,590 apiece on Thursday, extending losses for the second consecutive session after the release of the results on Wednesday.

M&M Q3 Results:

M&M reported a consolidated net profit of Rs 4,675 crore for Q3 FY26, marking a 47 percent year-on-year (YoY) rise from the Rs 3,180.58 crore net profit reported in Q3 FY25.

The firm's consolidated revenue from operations meanwhile rose 24 percent YoY to Rs 51,580 crore during the quarter under review.

The automaker reported a 33 percent YoY rise in standalone net profit to Rs 3,931 crore, while revenue from operations rose 26 percent YoY to Rs 38,517 crore during the quarter under review.

The company’s CEO and MD Anish Shah said, "We are delighted to report solid operating performance across the group in Q3’F26, reflecting our strong focus on growth coupled with disciplined execution. Auto & Farm has maintained its leadership position on the back of steady customer demand, strong product acceptance and unwavering focus on operational excellence. TechM continues to make meaningful progress. Mahindra Finance delivered another solid quarter with meaningful PAT growth while maintaining strong asset quality. We are especially pleased to see breakout performance from two of our growth gems, Mahindra Logistics and Mahindra Lifespaces."

Brokerages on M&M:

Motilal Oswal maintained its 'Buy' rating on the stock, with a target price of Rs 4,378 apiece. This implies an upside potential of more than 19 percent from the stock's previous closing price.

The domestic brokerage said that the firm's Q3 profit was in-line with its estimates. "We estimate MM to post a CAGR of ~18%/18%/20% in revenue/EBITDA/PAT over FY25-28. While MM has outperformed its own targets of earnings growth and RoE of 18%, it remains committed to delivering 15-20% EPS growth and 18% RoE, ensuring sustained profitability and shareholder value," it added.

JM Financial maintained its 'Add' rating on the stock, but reduced its target price to Rs 4,000 apiece. This implies an upside potential of nearly 9 percent from the stock's previous closing price.

"While near-term memory chip supply is secured, prolonged shortages and achieving CAFÉ norms target remain key monitorables," it said.

Citi kept a 'Buy' call on the stock, with a target price of Rs 4,230 apiece. It sees the automaker gaining further market share in India's car market, helped by a strong product pipeline and growing portfolio of electric SUVs.

Nomura kept a 'Buy' call on the stock, and raised its target price to Rs 4,662 apiece. The international brokerage said that it keeps M&M as its top pick among automakers. It sees premiumisation trend and strong model cycle extending M&M's growth outperformance against the broader industry.