Mahindra and Mahindra investors chose to overlook profitability concerns and a downward revision in the FY27 guidance for the tractor industry. Instead, they seem to have drawn comfort from the company’s robust September quarter (Q2FY27) results and upward revision in the light commercial vehicle (LCV) industry guidance to double-digits from a high-single digit.
Reacting to its Q2 earnings announced on Thursday, the stock rallied 10% over the past two trading sessions.
Standalone revenue rose 26% year-on-year to ₹42,477 crore, beating consensus estimates by almost 8%. The automotive business, which manufactures a range of passenger and commercial vehicles, electric vehicles and mobility products, was the largest contributor, with revenue rising 36%.
This was aided by a 26% increase in SUV volumes to 183,000 units. Mahindra retained its leadership in the SUV segment, with a revenue market share of 24.3% and has maintained its FY27 SUV volume guidance at the mid-to-high teens.
Its electric SUV business also gained traction, with a 30.1% revenue market share. M&M plans five major product launches by June 2027, including a vehicle on its new NU_IQ platform and an all-new electric SUV. It is expanding monthly production capacity to 82,000 vehicles by the end of FY27, from about 68,000 currently, to address demand that continues to exceed supply.