Mahindra & Mahindra (MM) reported a profit after tax (PAT) of ₹37 billion for the first quarter of FY27, beating analysts’ forecasts. The upside was mainly driven by higher‑than‑expected other income, while operating margins stayed in line with expectations.
The farm‑equipment segment performed better than projected, with margins above the consensus. In contrast, the auto division delivered a bit below expectations, although still within a reasonable range.
Management highlighted a healthy launch pipeline and positive consumer sentiment. It reiterated a strong outlook for FY27, predicting mid‑single‑digit growth for tractors, mid‑to‑high‑teens for MM UVs, and high‑single‑digit growth for low‑cost vehicles (LCVs).
For the next three years, MM is projected to record a compound annual growth rate (CAGR) of about 16% in revenue, 13% in EBITDA, and 14% in PAT for FY26‑28.
The analysts maintain a BUY rating and set a target price of ₹4,108, based on the March 2028 earnings forecast.
These views are the analysts’ opinions and are not investment advice. Investors should consult qualified professionals before making decisions.