Mahindra & Mahindra Leads the Nifty as SUV Boom Lifts Group Profit 25% and Auto Earnings Jump 55%

Mahindra & Mahindra emerged as one of the standout performers of India's earnings season, as surging demand for its sport utility vehicles drove strong growth in profit and helped its shares buck a global market sell-off.

The Mumbai-based conglomerate reported a consolidated profit after tax of ₹4,588 crore for the July-September quarter, the second quarter of the 2026-27 financial year, up 25% from ₹3,673 crore a year earlier, according to Angel One. Consolidated revenue rose 25% to ₹57,553 crore from ₹46,106 crore.

On a standalone basis, which covers the core automotive and farm equipment businesses of the parent company, profit rose 12.85% to ₹5,101.62 crore and revenue increased 27.10% to ₹42,477.42 crore, according to Upstox.

M&M's shares rose 5.25% to ₹3,117.30 on Thursday, November 5, according to Angel One. On Friday, November 6, the stock gained a further 3.68% to ₹3,242.60, making it the top gainer on the Nifty 50, according to Business Today, even as global markets reeled from a sell-off in technology stocks.

The SUV engine

The automotive business was the star. Automotive revenue rose 39% to ₹37,756 crore, and profit after tax for the segment jumped 55% to ₹2,388 crore from ₹1,536 crore, according to Angel One.

Total vehicle volumes rose 26% to 330,896 units. SUV volumes reached 183,000 units, and M&M's share of SUV revenue in India rose to 24.3%, reinforcing its position as one of the country's leading SUV makers. Its share of electric SUV revenue was 30.1%, reflecting the success of its electric models.

M&M has built one of the strongest SUV portfolios in India, with models such as the Scorpio, XUV700, Thar, XUV 3XO and its newer electric SUVs. Indian consumers have shifted decisively towards SUVs in recent years, and SUVs now account for more than half of passenger vehicle sales in the country.

Tractors slip

The farm equipment business, by contrast, saw a decline. Farm revenue fell 6% to ₹9,572 crore from ₹10,225 crore, and segment profit fell 9% to ₹1,053 crore, according to Angel One. Tractor volumes declined 6% to 116,027 units from 122,936, although M&M maintained a tractor market share of 41.5%, making it India's largest tractor maker by far.

Tractor demand depends heavily on the monsoon, crop prices and rural incomes. A softer farm cycle has weighed on sales, although M&M's dominant market share gives it resilience.

Services businesses grow

M&M's services businesses, which include financial services, IT and logistics, also performed well. Services revenue rose 18% to ₹11,821 crore, and profit rose 18% to ₹1,147 crore, according to Angel One.

Mahindra Finance, the group's non-bank lender, grew assets under management by 15% and profit by 61%. Tech Mahindra, the group's IT services company, reported a 33% rise in profit and an operating margin of 14.8%, reflecting its ongoing turnaround. Mahindra Logistics' revenue rose 24% to ₹2,095 crore, and Mahindra Lifespaces reported residential pre-sales of ₹1,100 crore, up 41%.

Strong first half

For the first half of the financial year, consolidated revenue rose 26% to ₹115,741 crore, and profit after tax rose 29% to ₹10,042 crore, according to Angel One. The group's annualised return on equity was 21%, a measure of how efficiently it is using shareholders' capital.

The electric push

M&M has invested heavily in electric vehicles, launching a new range of electric SUVs on a dedicated platform. Its 30.1% share of electric SUV revenue suggests that these models have been well received, despite competition from Tata Motors, which has led India's electric car market, as well as MG Motor, Hyundai and new entrants such as VinFast and BYD.

India's electric car market remains small relative to the overall market, but it is growing rapidly, supported by government incentives, falling battery costs and expanding charging infrastructure. M&M's early success in electric SUVs could position it well as the market grows.

The auto industry backdrop

India's passenger vehicle market has been strong this year, helped by tax changes that reduced the goods and services tax on many vehicles, rising incomes and new model launches. Car sales hit records during the festive season in October. The shift towards SUVs and premium vehicles has benefited companies with strong SUV portfolios, such as M&M and Tata Motors, while Maruti Suzuki, traditionally dominant in small cars, has also expanded its SUV range.

Why investors cheered

M&M's results beat expectations, according to Business Today. Investors were particularly encouraged by the strength of the automotive business, the growth in profitability and the improving performance of Tech Mahindra and Mahindra Finance. The diversified structure of the group, spanning autos, tractors, finance, IT and real estate, provides some resilience against weakness in any single business.

The stock's strong performance on November 6, as markets elsewhere fell sharply, also reflects investor preference for Indian companies driven by domestic demand rather than global technology spending.

Challenges ahead

M&M faces several challenges. The tractor business is cyclical, and a weak monsoon or falling crop prices could further dampen demand. Competition in SUVs is intensifying, with almost every carmaker in India launching new SUV models. Rising commodity costs, particularly for steel and battery materials, could pressure margins. The transition to electric vehicles also requires significant investment.

Group-wide momentum

M&M's results show the benefits of its diversified structure under group chief executive Anish Shah. While the farm business is cyclical, strength in automotive and services offset its weakness, delivering 25% consolidated profit growth. The improving performance of Tech Mahindra, which had been through a difficult period, and Mahindra Finance, whose profit rose 61%, adds to the group's earnings power.

The company has also been disciplined about capital allocation, exiting or restructuring underperforming businesses and focusing investment on areas where it has strong positions, such as SUVs, tractors and financial services. Its annualised return on equity of 21% reflects this focus.

Rural recovery watch

The outlook for the farm business depends on rural demand. A normal monsoon, healthy crop prices and government spending on rural infrastructure typically support tractor sales. M&M, as the market leader, would be a key beneficiary of any recovery in rural demand, which also affects sales of two-wheelers, consumer goods and other products across the economy.

What comes next

Investors will watch M&M's new SUV and electric vehicle launches, the trajectory of tractor demand and the performance of its services businesses. With strong momentum in its core automotive business and improving returns across the group, M&M is well positioned to remain one of the leading beneficiaries of India's growing consumer demand for vehicles.