Mahindra & Mahindra heads into its June-quarter earnings after delivering record SUV and tractor sales, but the Street expects the strong volume momentum to translate into only modest profit growth. Brokerages forecast standalone revenue to rise 19-24 per cent year-on-year, while profit after tax is seen increasing by just 0.2-2.3 per cent as higher raw-material costs, commodity inflation and investments in electric vehicles compress margins.
The automaker will announce its Q1 FY27 results today post 1.30pm or 13.30 hrs. Forecasts from Motilal Oswal Financial Services, Kotak Institutional Equities and HDFC Securities peg standalone revenue between ₹40,606 crore and ₹42,253 crore, implying growth of 19-24 per cent year-on-year. Net profit is estimated at ₹3,456-3,529 crore, translating into growth of just 0.2-2.3 per cent over the year-ago quarter.
While analysts remain constructive on demand, they expect margins to come under pressure despite healthy volume growth.
Motilal Oswal has the most conservative revenue forecast, estimating a 19.1 per cent increase to ₹40,606 crore, driven by an 18 per cent rise in tractor volumes and an 11 per cent increase in passenger-vehicle volumes, including pick-ups.
The brokerage expects profit to remain virtually flat, rising just 0.3 per cent to ₹3,458.5 crore.
It believes April price hikes are unlikely to fully offset higher raw-material costs and forecasts a 200-basis-point sequential contraction in the automotive division’s EBITDA margin.
Kotak Institutional Equities expects standalone revenue to grow 22 per cent to ₹41,515 crore, led by a 23 per cent increase in automotive revenue and 19 per cent growth in the farm-equipment business. It has factored in a 4 per cent increase in automotive average selling prices, aided by a richer SUV mix, light commercial vehicles and exports.
Kotak expects profit to rise 2.3 per cent year-on-year to ₹3,529.2 crore, although it sees EBITDA margin contracting 150 basis points sequentially. The brokerage attributes the pressure largely to commodity inflation and the increasing share of electric vehicles, partly offset by price increases and operating leverage.
HDFC Securities is the most bullish on the top line, forecasting revenue to rise 24 per cent to ₹42,253 crore. Yet it too expects profit growth of only 0.2 per cent to ₹3,456 crore, as margin pressure offsets the benefit of higher sales.
The brokerage estimates overall EBITDA margin at 12.3 per cent, down 200 basis points year-on-year and 174 basis points sequentially. It expects automotive EBIT margin to soften on higher raw-material costs, while the farm-equipment business could also see margins ease because of higher input costs and a greater share of lower-horsepower tractors.
Beyond the headline numbers, investors are expected to focus on management’s outlook for the rest of FY27.
M&M’s domestic SUV sales rose 15 per cent year-on-year to 1,74,745 units during the June quarter, while domestic tractor volumes jumped 18 per cent to 1,52,426 units—well ahead of the company’s earlier expectation of mid-single-digit industry growth for the fiscal year.
The Street will closely watch whether management upgrades its FY27 tractor-industry outlook, provides fresh commentary on SUV demand and order backlog, and shares an update on production capacity, pricing and the margin trajectory of its expanding electric-vehicle portfolio.
The earnings call is also expected to draw questions on the proposed transfer of Mahindra’s truck and bus business to SML Mahindra, although analysts believe the focus is likely to remain on the company’s core SUV and tractor businesses and whether strong volume momentum can translate into better profitability over the coming quarters.
Published on July 30, 2026
