Mahindra & Mahindra shares jump on Q4 show; brokerages stay bullish, targets raised

Mahindra and Mahindra share: Shares of Mahindra & Mahindra rose nearly 3 per cent in early trade on Wednesday, 6 May, after the company reported strong March quarter earnings.

At around 9:30 am, the stock was trading at Rs 3,306.70, up Rs 95.90 or 2.99 per cent.

Strong Q4 performance lifts sentiment

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Mahindra & Mahindra reported a 48 per cent year-on-year rise in consolidated net profit after tax (PAT) to Rs 5,259 crore in Q4FY26, compared to Rs 3,541 crore a year ago, as per its filing with the National Stock Exchange.

Revenue from core operations rose 29 per cent to Rs 54,891 crore in the March quarter, versus Rs 42,585 crore in the same period last year.

Operating performance also improved. EBITDA margin expanded to 13.81 per cent, up from 12.64 per cent a year ago.

Earnings per share (EPS) increased to Rs 41.77, compared to Rs 29.52 in the year-ago quarter.

Auto and farm segments drive growth

The company’s automotive business remained a key growth driver. Segment revenue rose 32 per cent year-on-year to Rs 34,294 crore in Q4.

SUV performance stayed strong. With quarterly volumes at 307,000 units, M&M’s SUV revenue market share increased to 24.5 per cent, up 60 basis points from last year.

The farm equipment segment also showed steady growth. Revenue rose 26 per cent to Rs 10,022 crore, compared to Rs 7,933 crore a year ago.

Dividend announcement and record date

Mahindra & Mahindra’s board of directors on Tuesday, May 5, announced a final dividend of Rs 33 per share for shareholders holding equity shares with a face value of Rs 5 each. The payout is subject to shareholder approval at the upcoming annual general meeting (AGM), according to an exchange filing.

Eligible investors will receive Rs 33 per share for every share held, provided they are on record before the cut-off date.

The company has fixed Friday, July 3, 2026, as the record date for determining eligible shareholders, as per the filing with the National Stock Exchange.

Analysts stay bullish; targets revised

Brokerages largely remained positive on the stock, though some adjusted estimates and flagged near-term risks.

Jefferies maintained a ‘Buy’ rating but cut its target price to Rs 4,000. It said Q4 performance was strong, with the company delivering its 16th consecutive quarter of double-digit EBITDA growth.

However, it flagged concerns around the tractor cycle and trimmed FY27–28 EPS estimates by 3–5 per cent, while still expecting around 11 per cent core EPS CAGR over FY26–28.

JPMorgan Chase maintained an ‘Overweight’ rating and raised its target to Rs 4,135. It said better-than-expected SUV volumes and improved FY27 guidance should support the stock, though margin headwinds across businesses remain a watchpoint.

Goldman Sachs retained a ‘Buy’ rating and raised its target to Rs 4,000, reflecting confidence in earnings trajectory.

Citi raised its target to Rs 4,470, noting that Q4 results were above estimates, driven by higher auto realisations and improved gross margins. It expects UV growth in mid-to-high teens and tractor growth in mid-single digits, while cautioning that adverse monsoons and cost pressures could weigh on margins.

HSBC also maintained a ‘Buy’ rating and raised its target to Rs 4,200.

Nomura maintained a ‘Buy’ rating but trimmed its target to Rs 4,580. It highlighted a strong margin beat, improving free cash flow, and a robust order book, which it said provides comfort on near- to medium-term revenue visibility. It also raised FY27–28 EPS estimates by around 2–5 per cent.

CLSA retained an ‘Accumulate’ rating while cutting its target, and UBS raised its target to Rs 4,590, among the highest on the Street.