Opening Hook
While most automakers are still learning to pronounce “electrification”, Mahindra is busy selling SUVs like they’re samosas at a cricket match. Add to that tractors that refuse to slow down and a sprinkle of tech magic from Tech Mahindra, and you have a quarter that’s more action-packed than a Bollywood sequel.
Here’s what we decoded from the hour-long corporate blockbuster they call an analyst meet.
At a Glance
- Consolidated Revenue: ₹45,529 Cr – up 22% YoY.
- PAT: ₹4,083 Cr – jumped 24%, proving profits still exist.
- SUV Volumes: Up 22% YoY, revenue market share at 27.3% (+570 bps).
- Tractor Volumes: Up 10% YoY, market share at 45.2% (highest ever).
- ROE: 20.6% annualized – investors love that number.
The Story So Far
Mahindra has been on a relentless drive – literally and figuratively. From dominating the SUV and tractor markets to making noise in EVs and financial services, the group has been flexing across segments. Last quarter they promised strong execution, this quarter they actually delivered. With BEV losses under control, margins stable, and Tech Mahindra slowly recovering, the company looks like it’s firing on most cylinders (except maybe hospitality, which is still catching its breath).
Management’s Key Commentary
- On SUVs: “Volumes grew 22%.” – Translation: We’re eating market share for breakfast.
- On EVs: “#1 in EV revenue market share.” – Translation: Tesla who?
- On Tractors: “Highest ever market share.” – Translation: Farmers love us.
- On TechM: “Margin recovery on track.” – Translation: The tech cousin is finally behaving.
- On Outlook: “Bold by design.” – Translation: Buckle up, it’s going to be a ride.
Numbers Decoded – What the Financials Whisper
| Parameter | Q1FY26 | Q1FY25 | YoY Change |
|---|---|---|---|
| Revenue (Hero) | ₹45,529 Cr | ₹37,218 Cr | +22% |
| PAT (Drama Queen) | ₹4,083 Cr | ₹3,283 Cr | +24% |
| Auto PBIT Margin | 10.0% | 9.5% | +50 bps |
| Farm PBIT Margin | 19.8% | 18.5% | +130 bps |
| ROE | 20.6% | 18.1% | +250 bps |
Analyst Questions That Spilled the Tea
- Q: When will EV margins turn positive?
Mgmt: “We are working on it.”
Translation: Don’t ask again till FY27. - Q: Can Tech Mahindra hit 15% EBIT by FY27?
Mgmt: “That’s the target.”
Translation: Pray to the IT gods. - Q: Will tractor growth sustain?
Mgmt: “Yes, highest market share ever.”
Translation: Farmers have our back.
Guidance & Outlook – Crystal Ball Section
Management expects continued SUV dominance, steady farm equipment growth, and stronger contributions from services (TechM, MMFSL). EV losses should narrow as scale improves. Real estate and hospitality remain “work in progress”. The roadmap is aggressive, with bold bets on BEVs, e-3Ws, and global farm tech expansion.
Risks & Red Flags
- EV Losses – BEV PBIT still negative at -3.3%.
- Commodity Costs – any spike can dent margins.
- Global Uncertainty – exports and subsidiaries may face headwinds.
- Execution Risk – multiple businesses, multiple moving parts.
Market Reaction & Investor Sentiment
The stock rallied as traders only heard the words “SUV” and “24% PAT”. EV losses? Ignored. Hospitality struggles? Forgotten. When the numbers are this good, the market just hits the buy button.
EduInvesting Take – Our No-BS Analysis
Mahindra is delivering where it matters—SUVs, tractors, and profits. The EV game is costly but strategically critical. Tech Mahindra’s recovery is encouraging, but the real driver remains the core auto-farm engine. This is a company with momentum; just don’t expect BEV miracles overnight.
Conclusion – The Final Roast
In short, Mahindra’s Q1FY26 was like a blockbuster sequel: big action (SUV sales), a strong plot (profit growth), and a minor subplot of losses (EVs). Investors are happily munching popcorn—let’s see if the next quarter keeps the show running.
Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.
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