Mahindra & Mahindra (MM IN) – Q2FY26 Result Update – Profit beats estimates due to higher other income – Accumulate
Published on 06 Nov 2025
M&M’s Q2FY26 standalone revenue grew by 21.3% YoY, missing BBGe marginally by 1.4% (was 1.3% above PLe) due to lower-than-expected blended realization. Lower other expenses and higher non-operating income helped adj PAT (adjusted for loss in JV & subsidiaries) to grow by 17.7% YoY, beating BBGe/PLe by 14.9%/15.2%. The group continues to show strong performance across the business with steady expansion in margins and market share. We marginally tweak volume and realization estimates and expect overall volume and blended realization to grow at 9.1% and 5.0% CAGR, respectively, over FY25-28E, translating to revenue/EBITDA/EPS CAGR of 15.2%/13.5%/12.7%. Retain “ACCUMULATE” rating with TP of Rs3,950 (previous Rs3,845), valuing the core business at 26x P/E on its Sep’27 earnings and its share of subsidiaries’ value based on respective market prices. The stock currently trades at P/E of 26.4x/23.9x based on FY27E/FY28E consensus earnings.
