Mahindra & Mahindra
Mahindra & Mahindra manufactures utility vehicles (Thar, XUV700, Scorpio, and newer electric SUVs) and is the world's largest tractor maker by volume, with sizeable stakes in financial services (Mahindra Finance) and IT services (Tech Mahindra) alongside the core auto and farm business.
- P/E ~19-22x (sources vary)
- ROE 23.4%
- Core debt/equity 0.04x
- Down 24% from Jan 2026 peak
- Sept tractor sales -23% YoY
Updated on 14 Oct 2026 · Data as of 13 Oct 2026
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Snapshot
- Share price
- ₹2,864.40
- 13 Oct 2026
- 52-week range
- ₹2,751.20 – ₹3,762.88
- All-time peak
- ₹3,762.88
- 2 Jan 2026 · −23.9% from peak
- Dividend yield
- 1.15%
- Price history since
- 1996
- About 30 years of prices
What's happening
The stock hit a fresh 52-week low on 1 October 2026 after September domestic tractor sales fell 23% year-on-year (50,208 vs 64,946 units). Management attributes this to a high base effect — September 2025 sales were inflated by a GST rate cut on tractors (12% to 5%) plus this year's festive season shifting into October — and points out H1 FY27 tractor volumes are still up 6% YoY cumulatively. Q2 FY27 results are due 5 November 2026. Separately, media reports in 2025-26 of the group weighing a demerger of its tractor, passenger vehicle, and truck businesses into separate entities were denied by the company ('no plans'), but the speculation has lingered as an overhang.
In plain terms
This is a well-run, financially conservative company whose profits are genuinely growing — but its share price has fallen sharply anyway. The tension: Q1 FY27 consolidated profit was up 33.6% and the core business carries almost no debt, yet the stock is down nearly 24% from its January 2026 high. That gap exists because September's tractor numbers looked weak against an artificially inflated year-ago base (last year's GST cut pulled sales forward), and because the broader Indian auto sector has derated this year. Investors should separate the short-term sales-data noise from the underlying trend, which (per management) is still positive on a six-month view.
Quarters
Q1 FY27 (June 2026 quarter): consolidated PAT ₹5,455 crore, up 33.6% YoY, on revenue of ₹57,533 crore, up 26.6%. Standalone (core auto+farm) PAT grew a slower 7% YoY to ₹3,685 crore on revenue up 23% to ₹41,920 crore — the gap between standalone and consolidated growth rates is because consolidated profit also picks up contributions from Mahindra Finance and the Tech Mahindra stake, which grew faster this quarter; this makes simple YoY profit comparisons at the consolidated level less representative of the core auto/farm business alone. FY26 full year: automotive segment revenue ₹1,17,834 crore (segment result ₹10,383 crore, ~8.8% margin); farm equipment segment revenue ₹42,568 crore (segment result ₹5,517 crore, ~13% margin). A ₹33/share dividend was declared with the FY26 results. Not verified - a reported full-year consolidated PAT figure of roughly ₹17,000 crore for FY26 came from a single source and could not be cross-checked against a second filing.
Performance
Heads-up on splits: Mahindra & Mahindra has split its shares or issued bonus shares before (most recently 2-for-1 on 21 Dec 2017, 2-for-1 on 29 Mar 2010 and 2-for-1 on 1 Sept 2005). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
−16.3% over 1 year
Returns by period
| Period | Mahindra & Mahindra | Nifty 50 | Maruti Suzuki India |
|---|---|---|---|
| 3 months | −7.4% | −5.5% | −15.8% |
| 1 year | −16.3% | −9.9% | −30.4% |
| 3 years | +86.7% | +15.2% | +8.3% |
| 5 years | +220.8% | +25.1% | +57.4% |
₹100 invested on 13 Oct 2021 became…
- Mahindra & Mahindra₹321
- Nifty 50₹125
- Maruti Suzuki India₹157
Long-term shareholder returns have been exceptional and are not an artifact of corporate actions: 5-year return of +220.77% versus the Nifty's +25.11% and peer Maruti's +57.38%; 3-year return +86.66% versus Nifty +15.15% and Maruti +8.27%. The three stock splits (2005, 2010, 2017) are old and already reflected in these rebased numbers — no demerger has actually been executed, so there is no 'holders received other shares' adjustment needed here. The more recent picture is weaker: 1-year return is -16.34% against the Nifty's -9.93%, though M&M still held up much better than Maruti's -30.42% over the same period. The stock is down 23.9% from its 2 January 2026 peak of ₹3,762.88 — a genuine sector-wide auto derating plus the tractor-demand scare, not a crash tied to any corporate action.
Dividend
Paid in the last 12 months
₹33.00 per share
Dividend yield
1.15%
Dividend yield is the last 12 months of dividends divided by today's share price. A 1.1% yield means every ₹100 of Mahindra & Mahindra shares paid about ₹1.1 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 3 Jul 2026 | ₹33.00 |
| 4 Jul 2025 | ₹25.30 |
| 5 Jul 2024 | ₹21.10 |
| 14 Jul 2023 | ₹16.25 |
| 14 Jul 2022 | ₹11.55 |
| 15 Jul 2021 | ₹8.75 |
| 16 Jul 2020 | ₹2.35 |
| 18 Jul 2019 | ₹8.50 |
Valuation
P/E estimates cluster between roughly 19x and 22x depending on the source and trailing-earnings window used (one source showed 18.3x, another 19.2x, another 22.4x) — treated here as a range rather than a single number since the underlying EPS bases don't fully agree. Why it might look cheap: ROE of 23.44% and ROCE of 19.49% are both well above M&M's own 10-year median and above typical auto-sector peers, so the multiple isn't obviously expensive for the profitability on offer. Whether it actually is cheap is a separate question the simple P/E can't answer cleanly, because M&M's consolidated earnings blend a conservatively financed auto/farm business with stakes in Mahindra Finance (an NBFC with its own leverage profile) and Tech Mahindra — a sum-of-parts business that a single P/E multiple oversimplifies.
Growth
Growth has been both volume- and margin-led, which is the more durable combination. Automotive and farm segment revenues grew alongside stable-to-improving segment margins (~8.8% and ~13% respectively in FY26), rather than margin expansion covering for flat volumes. The SUV portfolio (Thar, XUV700, Scorpio) has been gaining market share, and new electric SUVs (BE 6, XEV 9e, XEV 9S) have crossed 1 lakh cumulative units sold, though EV volumes (~7,800 units in September 2026) remain a small fraction of total monthly passenger-vehicle sales. Tractors are the one segment showing a volume wobble: September 2026 domestic sales fell 23% YoY, though H1 FY27 cumulative volumes are still up 6%, and management attributes the September dip mainly to last year's GST-driven high base rather than falling demand.
Health
The core auto and farm business carries almost no debt — reported debt-equity ratio (excluding the financial services subsidiary) of just 0.04x, with net worth of ₹92,145 crore and a current ratio of 1.27x as of FY26. Profits are backed by real cash generation in the core manufacturing business rather than financial engineering. The company's financing arm, Mahindra Finance, naturally carries lending-book leverage typical of an NBFC, but that sits in a separate capital structure from the manufacturing parent. The dominant risk here is business/cyclical risk — tractor and auto demand cycles, GST-driven base effects, and competitive intensity in SUVs — not balance-sheet or solvency risk.
Ownership
Promoter holding is unusually low for an Indian listed company at 18.45% (as of May 2026), held mainly through Prudential Management & Services Pvt Ltd (10.81%) and the M&M Benefit Trust, of which Anand Mahindra is a trustee (6.91%) — there is no single controlling promoter block in the conventional Indian sense, and the company is run by a professional board and management. Promoter pledging is negligible at 0.02% of holdings. LIC holds just under 10% (9.96%) directly, part of a broader insurance-holder bucket at 10.70%; foreign institutional investors are the largest shareholder class at 36.23%, with domestic mutual funds at 17.25% and retail at 13.75%. No single widely-followed individual value investor appears as a notable name on the register based on available 2026 filings.
The View
The one thing to watch
The Q2 FY27 results (due 5 November 2026) along with October-November monthly tractor and SUV sales data, which will show whether September's tractor decline was a one-off high-base effect, as management claims, or the start of a genuine demand slowdown.
Strengths
- +ROE of 23.44% and ROCE of 19.49%, both above M&M's own 10-year median and well above the broader vehicles-and-parts industry median
- +Core auto/farm business debt-equity ratio of just 0.04x, backed by a ₹92,145 crore net worth as of FY26
- +Q1 FY27 consolidated PAT grew 33.6% YoY to ₹5,455 crore on revenue growth of 26.6%
- +5-year shareholder return of +220.77% versus Nifty's +25.11%, reflecting sustained SUV and tractor market-share gains, not a corporate-action artifact
Watchpoints
- !September 2026 domestic tractor sales fell 23% YoY against a GST-cut-inflated base; whether October-December volumes confirm management's '6% H1 growth, just a base effect' reading needs tracking
- !Stock is down 23.9% from its January 2026 peak and hit a fresh 52-week low on 1 October 2026, underperforming its own long-term trend even as profits keep growing
- !Unresolved speculation about a possible demerger of tractor, passenger-vehicle and truck businesses — denied by the company, but recurring reports could keep creating an overhang until formally closed out
- !Electric SUVs (BE 6, XEV 9e, XEV 9S) have crossed 1 lakh cumulative units but still represent a small share of monthly PV volume, so the profitability of the EV transition is not yet proven at scale
How sure are we about the data? · Moderate
Cross-checked Q1 FY27 results, September tractor sales, debt ratios, and shareholding figures across multiple independent sources (Business Standard, Kotak Neo, GuruFocus, Trendlyne, trade press). P/E ratio was not fully reconciled across sources (range of 18.3x-22.4x reported) and is presented as a range rather than a single figure. A reported FY26 full-year consolidated PAT of roughly ₹17,000 crore came from a single source (Forbes India) and could not be independently cross-verified. Promoter holding (18.45%) and pledge (0.02%) are from Trendlyne (May/June 2026 data) and were not separately checked against an NSE/BSE shareholding filing.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 13 Oct 2026.