Mahindra & Mahindra Shares Gain Ahead of Q2FY26 Earnings Preview; Analysts Project Strong Revenue Growth

Mahindra & Mahindra (M&M) stock experienced a notable surge, climbing as much as 2.95 per cent to reach an intraday high of ₹3,589.35. Trading around 2:00 PM, the stock remained strong, being the top performer on the 30-share BSE Sensex, up 1.74 per cent at ₹3,546.85, while the benchmark Sensex was nearly flat. The positive momentum comes ahead of M&M's Q2FY26 results, scheduled for release on Tuesday, November 4, 2025.

Analysts are forecasting robust year-on-year revenue growth for M&M, with expectations ranging between 17 per cent and 25 per cent. This growth is anticipated to be fueled by increased volumes in both the automotive and farm equipment divisions, coupled with better product realization, particularly from the electric vehicle (EV) segment. However, profit margins could present a mixed picture. Concerns include the increasing share of EVs, which may have lower initial profitability, and persistent commodity cost pressures.

Brokerage firms have outlined specific expectations:

* **Nuvama** forecasts revenue up 25% Y-o-Y to ₹34,343.9 crore and EBITDA up 20% Y-o-Y to ₹4,745.3 crore. They anticipate a slight margin contraction due to the auto segment's performance. * **Kotak Institutional Equities** expects revenue to rise 23.1% Y-o-Y to ₹33,919.5 crore and EBITDA up 23.1% Y-o-Y to ₹4,890.7 crore. They foresee a slight improvement in EBITDA margins, supported by operating leverage. * **Motilal Oswal** projects revenue growth of 19.5% Y-o-Y to ₹32,921.1 crore and EBITDA up 16.9% Y-o-Y to ₹4,615.4 crore. * **InCred Equities** predicts revenue up 17.3% Y-o-Y to ₹32,329 crore and EBITDA up 20.3% Y-o-Y to ₹4,752.4 crore, highlighting strong domestic volume growth and an improved product mix.

Investors will be closely watching for updates on demand outlook, new product launches, and M&M's strategy to meet future emission standards like CAFE3 norms.

Impact This news is highly relevant for investors as it provides a preview of a major auto company's financial performance. Strong results could boost M&M's stock price and positively influence investor sentiment towards the auto sector. Conversely, any negative surprises or significant margin concerns could lead to a stock correction. The focus on EVs and commodity prices also indicates key trends within the industry. Rating: 8/10

Difficult Terms:

* **Y-o-Y (Year-on-Year):** A comparison of financial metrics over the same period in consecutive years. * **Q2FY26:** The second quarter of the Financial Year 2026 (July to September 2025). * **BSE Sensex:** A benchmark stock market index representing the performance of 30 of the largest and most actively traded stocks on the Bombay Stock Exchange. * **EV (Electric Vehicle):** A vehicle that uses one or more electric motors for propulsion, powered by electricity stored in rechargeable batteries. * **Auto:** Refers to the automobile industry, including passenger vehicles, commercial vehicles, and components. * **Farm Equipment:** Agricultural machinery such as tractors, harvesters, and implements. * **Realisation:** The average price received by a company for each unit of its product sold. * **Margin:** The difference between revenue and costs, often expressed as a percentage of revenue, indicating profitability. * **EBITDA:** Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. * **PAT (Profit After Tax):** The net profit of a company after all expenses, interest, and taxes have been deducted. * **CAFE3 norms:** Corporate Average Fuel Economy standards, regulations aimed at improving the average fuel efficiency of vehicles sold by automakers. * **GST (Goods and Services Tax):** An indirect tax levied on the supply of goods and services in India. * **PV (Passenger Vehicle):** A motor vehicle designed to carry passengers, typically including cars and SUVs.