Mahindra & Mahindra shares slip nearly 2% after Q1 results. Should you buy, sell or hold?

Shares of Mahindra & Mahindra (M&M) slipped 1.7% to their day’s low of Rs 3,152 on the BSE on Thursday after the company reported its Q1FY26 results, posting a 24% year-on-year rise in its consolidated net profit to Rs 4,083 crore for Q1FY26, compared to Rs 3,283 crore in the same quarter last year.

Revenue for the quarter stood at Rs 45,436 crore, up 23% from Rs 37,010 crore in Q1FY25. On a sequential basis, profit rose 24% from Rs 3,295 crore in Q4FY25, while revenue increased 7% from Rs 42,586 crore.

The company posted strong operational performance across segments, with the auto and farm equipment businesses continuing to drive growth and maintain margins, leading to a 20% rise in profits, according to a company statement.


M&M retained leadership in the SUV segment, achieving a 27.3% revenue market share—up 570 basis points YoY. SUV volumes grew 22% during the quarter. In the LCV (<3.5T) category, the company held a 54.2% market share, up 340 bps.

In the farm segment, M&M claimed a 45.2% market share in tractors, up 50 bps YoY, and a 38.7% market share in electric three-wheelers.

Should you buy, sell, or hold M&M's stock? Here’s what brokerages say:

Nuvama

Nuvama has maintained a ‘Buy’ rating with a target price of Rs 3,700.

The brokerage expects the auto segment to clock a 14% CAGR between FY25–28E, driven by strong demand and new model launches. The farm segment is projected to grow at 10% CAGR, aided by market share gains and supportive policies. It also forecasts a 13% CAGR in revenue and core earnings, with RoIC expected to stay above 55%. The target price is based on 25x September 2027 core EPS.

Avendus

Avendus has also retained a ‘Buy’ rating but revised its target price to Rs 3,650 from Rs 3,700.

The firm is optimistic about M&M’s EV plans via Born EV platforms BE 6 and XEV 9e. The core ICE business is expected to remain resilient, backed by capacity expansion and a strong order book. Automotive volume CAGR is projected at 19% for FY25–27E, while tractor volume is expected to grow at a mid-single-digit rate. However, rising EV contribution may pressure margins. The target price is based on a 27x FY27E EPS under the SOTP valuation model.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)