Mahindra in the driver’s seat as festive demand fuels 'double-digit' growth for FY26

Mahindra & Mahindra expects to close FY26 with double-digit growth, supported by steady demand across passenger vehicles, commercial vehicles and tractors, the company told analysts at its Q2 earnings meet. Management said retail and booking trends during the festive season were encouraging, with demand remaining strong even beyond Diwali.

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm), said retail sales in the first seven days of Navratri were “way better” compared to the period preceding the festival, with sustained traction across regions. “Booking momentum has been far stronger than retail momentum. Overall, we feel comfortable about the way demand played out,” he said. Growth was particularly strong in Maharashtra and Karnataka, while Uttar Pradesh and Rajasthan saw high single-digit expansion.

Mahindra also highlighted gains in market share across key segments. It retained the No. 1 position in SUVs with a revenue market share of 25.7%, up 390 basis points year-on-year. In light commercial vehicles below 3.5T, the company continued to lead with a 53.2% share, up 100 bps. In tractors, Mahindra maintained the top position with a 43.0% market share, up 50 bps, while in electric three-wheelers, it held a 42.3% share.


On the impact of the GST 2.0 changes, Mahindra Group MD & CEO Anish Shah said the revised structure is expected to simplify processes and reduce overall taxation. Jejurikar added that the GST changes could unlock “latent demand” in light commercial vehicles over several quarters. He noted that tractor demand continues to be influenced by elevated input costs.

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In passenger vehicles, the company expects affordability to improve in the sub-₹10 lakh segment, with models such as the Bolero and Bolero Neo likely to benefit. Jejurikar said purchase timing may shift but underlying demand remains intact. “If someone is not buying our vehicle today, they will buy it in the future. This is going to be good for everybody,” he said.

On electric vehicles, Mahindra said it has not seen any material impact on sales yet because of GST 2.0. The company’s EVs currently operate in higher price bands where the relative difference versus internal combustion vehicles remains narrower.

Jejurikar said the company remains confident of closing the year with double-digit growth, provided broader economic conditions and interest rate trends continue as they have over the past two to three months. “If this momentum continues… we’ll end the year in double digits. Some would argue it could be high single digits, but directionally the outlook is positive,” he said.