Mahindra & Mahindra (MM IN) – Q4FY26 Result Update – Strong Q4 with Positive Outlook – BUY
Published on 07 May 2026
MM’s Q4FY26 standalone operating revenue and PAT were above estimates, while RM inflation, supply chain disruption, and manpower issues impacted its margins. Demand remains strong even as the company is trying to mitigate the disruptions. Given the de-escalation in West Asia crisis, it expects FY27 volume growth for its SUVs at mid-to-high teens, tractor industry at mid-single digits, and LCV industry at high-single digits. Its resilience to shocks will help MM to continue on the growth trajectory. We estimate volume/realization CAGR of 5.7%/4.3% over FY26-28E, translating into revenue/EBITDA/PAT CAGR of 10.9%/10.3%/10.3%. We reiterate ‘BUY’ rating with TP of INR3,900 (previously INR3,850), valuing the core business at 24x P/E on FY28E standalone EPS, and its share of subsidiaries’ value.
