Mahindra & Mahindra: Should you buy, sell or hold after Q3 results?

Synopsis: M&M shares are in focus as top brokerages like Jefferies, Citi, and Morgan Stanley maintain Buy/Overweight ratings, citing robust UV and tractor performance, market-share gains, and strategic EV and PLI initiatives.

The shares of one of the most diversified automobile companies, which specializes in a wide range of industries, particularly automotive, where it is a leader in SUVs and utility vehicles, and farm equipment, are in focus following their Q3 results, as many top brokerage firms have shared their views on the company post-results.

With a market capitalization of Rs. 4,46,775.04 crores on the day’s trade, the shares of Mahindra & Mahindra Ltd rose upto 1.1 percent, making a high of Rs. 3716.65 per share compared to its previous closing price of Rs. 3674.65  per share.

Q3 Performance

Income from operations rose 26 percent YoY from Rs. 41,470.05 crores in Q3FY25 to Rs. 52,099.75 crores in Q3FY26, and 13 percent QoQ from Rs. 46,105.67 crores in Q2FY26.

Net profit increased 38.5 percent YoY to Rs. 5,021.47 crores from Rs. 3,624.48 crores, and 26.6 percent QoQ from Rs. 3,963.75 crores. Earnings per share (EPS) for the quarter stood at Rs. 41.85, up from Rs. 32.90 in the previous quarter.

Jefferies on Mahindra & Mahindra

The leading Global Brokerage firm, Jefferies, initiated its ‘Buy’ rating for a target of Rs. 4,500 on it with an upto 22.4 percent Upside Potential from yesterday’s close price.

Jefferies expects that M&M has delivered its 15th consecutive quarter of double-digit EBITDA growth, driven by strong industry demand and market share gains. While the company expressed some caution on the FY27 tractor industry outlook due to a high base. They expect MM’s core EPS to rise 30% YoY in FY26, followed by 15% CAGR over FY25-28E.

Citi on Mahindra & Mahindra

Leading Global Brokerage firm, Citi, initiated its ‘Buy’ rating for a target of Rs. 4230 on it with an upto 15.1 percent Upside Potential from yesterday’s close price. Citi expects that M&M’s UV capacity expansion is progressing as planned, supporting its continued traction in the segment. The company remains a market leader in tractors while steadily growing its EV portfolio, bolstered by a strong product pipeline, which should further drive market-share gains.

Morgan Stanley on Mahindra & Mahindra

One of the leading global brokerage firm, Morgan Stanley, maintained an Overweight rating with a revised target price to Rs. 4,358  from Rs. 4407 with an upto 18.5 percent Upside Potential from yesterday’s close price.

Morgan Stanley expects that Tractor and UV growth could see moderation in FY27, but both segments are expected to turn around in FY28. Market shares are likely to remain stable, and no new EV launches are planned for CY26, with the focus instead on ramping up existing models. The entire portfolio is expected to be covered by PLI incentives by Q1 FY27.

Revenue Segmentation & Quarter Update

For Q3 FY2026 (ended 31st December 2025), total segment revenue increased to Rs. 53,506.83 crores from Rs. 42,534.51 crores in Q3 FY2025, reflecting a strong overall growth of approximately 25.7%. This growth was driven by solid performance across key segments.

The Automotive segment rose from Rs. 23,390.69 crores to Rs. 30,370.37 crores (up 29.8%), while Farm Equipment grew from Rs. 9,536.94 crores to Rs. 11,500.69 crores (up 20.5%). Financial Services increased from Rs. 4,759.65 crores to Rs. 5,435.15 crores (up 14.1%), and Industrial Businesses and Consumer Services expanded from Rs. 4,847.23 crores to Rs. 6,200.62 crores, marking a 27.9% growth.

The company continues to lead across key segments, reporting a strong RoE of 20.1% (annualised). It remains #1 in SUVs with a revenue market share of 24.1%, and dominates the LCV (