M&M Share Price Dips 2% Despite Strong Q1FY26 Performance

Market Movement: M&M Share Price Trends Lower

Shares of Mahindra & Mahindra (M&M) declined by nearly 2% on July 31, 2025, trading at ₹3,152, despite a strong earnings report for Q1FY26. The drop in M&M share price is largely attributed to weak broader market sentiment.

• M&M stock was down 1.6% at ₹3,152 compared to its previous close
• The stock has still gained 7% since the start of 2025

Q1FY26 Financial Highlights

Despite the dip in share price, M&M posted solid results in its quarterly earnings report.

Revenue

• Revenue from operations stood at ₹34,143 crore, marking a 26% year-on-year (YoY) growth
• This compares to ₹27,133 crore during the same quarter last year

Net Profit

• Net profit surged 32% YoY to ₹3,450 crore for the quarter ended June 30, 2025
• This increase was driven by strong demand for high-margin SUVs and tractors

EBITDA Growth

• Q1FY26 marked the 13th consecutive quarter of double-digit EBITDA growth for the company

EBITDA Margins

• M&M maintained healthy EBITDA margins, supported by a robust product mix

Company Overview: Mahindra & Mahindra's Performance Drivers

SUV Market Share Growth

• M&M’s SUV revenue market share increased to 27.3% in Q1FY26, compared to 23.5% in the previous quarter
• The increase indicates strong customer demand for its SUV portfolio, including models like Scorpio and XUV700

Tractor Demand Picks Up

• The company also noted a pick-up in tractor demand, contributing to the overall performance boost

Summary

Despite the 2% decline in M&M share price, the company delivered a robust Q1FY26 performance, driven by substantial increases in both revenue and net profit. Solid SUV and tractor sales drove this performance, alongside improved market share and consistent EBITDA growth.

While market sentiment may have led to the temporary dip in share value, M&M's financial fundamentals remain strong, underlined by increasing market share and continued momentum in key segments.