M&M Posts Robust Q1: Valuations Still Reasonable, SEBI RAs See 15% Potential Upside Ahead

Mahindra & Mahindra reported a robust Q1FY26, with revenue rising 23% year-on-year to ₹34,083 crore, driven by strong growth in SUVs, tractors, and rural exports. Net profit climbed 24% to ₹4,083 crore, supported by healthy demand and operational efficiency.

Analysts remain bullish on the stock, driven by its strong execution and they see potential upside of 15% going ahead.

Mahindra & Mahindra was the top trending stock on Stocktwits with ‘extremely high’ message volumes. Retail sentiment remained ‘neutral’.

Q1 Earnings Review

SUV sales rose nearly 22%, while tractor and farm equipment volumes increased around 10%. Improved EBITDA margins reflected scale benefits and effective pricing strategies, noted SEBI-registered Financial Independence.

The company also reported strong order execution and continued traction from newly launched models.

With rural markets remaining resilient and product demand increasing, the outlook for H2 FY26 remains positive. M&M’s execution strength and momentum in key segments signal a constructive road ahead, the analysts said.

Vatsal Khemka added that despite the strong quarterly performance and consistent growth across key segments, Mahindra & Mahindra’s valuations still appear reasonable.

The company continues to benefit from robust demand in SUVs and farm equipment, along with solid execution and margin management.

Technical Outlook

Given the current momentum, both investors and short-term traders can consider holding the stock with a 3-month view, he added. If the trend sustains, there is potential for M&M to move toward a new all-time high.

Khemka set a target price at ₹3,700, a 15% upside to the current trading price of ₹3,220.2.

Year-to-date (YTD), the shares have climbed 7%.

For updates and corrections, email newsroom[at]stocktwits[dot]com