Mahindra & Mahindra – Comprehensive Stock Analysis Report |Scrolls

by Karnivesh | 2026

Mahindra & Mahindra - Comprehensive Stock Analysis Report.pdf

Download PDF • 1.11MB

The story of Mahindra & Mahindra Limited is, at its core, the story of modern India itself rural roots, industrial ambition, and a steady climb toward global relevance.

It began decades ago with rugged Jeeps and dependable tractors, machines built for a newly independent nation that needed mobility and mechanisation more than polish. For years, Mahindra was synonymous with rural India — tractors ploughing fields, Boleros navigating dusty roads, and a reputation for toughness over glamour. That foundation still matters. But over the last few years, the company has quietly rewritten its identity.

By FY24, Mahindra had transformed into a scale-driven, profit-focused automotive and farm-equipment leader. Consolidated revenues crossed ₹1.39 lakh crore, and profits rose to ₹11,269 crore, even in a year when tractor volumes declined due to a weak monsoon. The real shift, however, came from the automotive side. SUVs once a niche became Mahindra’s growth engine. Models like the Scorpio, XUV700, Thar, and newer launches such as Thar Roxx and XUV3XO turned the company into India’s number-one SUV player by revenue, commanding over 20% market share in the segment.

This wasn’t just about selling more cars. It was about selling better ones. Premiumisation lifted margins, operating leverage kicked in, and standalone profits surged 64% YoY in FY24. Even into FY26, momentum held strong: Q3 saw 24% revenue growth and 47% PAT growth, driven by SUV demand that showed little sign of fatigue.

While SUVs stole headlines, Mahindra’s old strength tractors quietly did its job. Volumes fell about 7% in FY24 due to rural headwinds, but Mahindra still gained market share, holding close to 40% leadership. Cost discipline and pricing power ensured profitability remained intact. In effect, tractors played their traditional role: a stabiliser when cycles turned soft.

Behind the scenes, the balance sheet told an equally important story. Debt came down, cash flows hit record levels, and returns improved. With ROE in the 15–20% range, Mahindra earned the flexibility to invest aggressively in electric vehicles, new platforms, and technology without stressing capital. Shareholders benefited too, through steady dividends, even as the company retained enough cash to fund the future.

That future is deliberately diversified. Mahindra isn’t betting everything on one engine. Financial services via Mahindra Finance deepen rural reach and enable vehicle sales, though returns there still need improvement. Logistics, real estate, renewables, and aerospace add optional upside not core drivers today, but valuable levers for capital recycling and long-term value creation.

The risks, of course, haven’t disappeared. Tractors remain hostage to monsoons. SUVs face fierce competition from Tata Motors, Hyundai-Kia, and a growing EV field. Electrification brings execution risk, higher capex, and uncertain payback timelines. And Mahindra’s very diversity can dilute focus if not managed tightly.

Yet that is precisely what the market is pricing in. At mid-20s earnings multiples and a P/B above 5x, Mahindra is no longer a turnaround or deep-value play. It is valued as a category leader one expected to execute consistently, defend margins, and convert growth into returns.

In simple terms, Mahindra today is bigger, more profitable, and more confident than it was a few years ago. It has moved from being a utilitarian manufacturer to a brand-led SUV powerhouse, while still anchoring itself in rural India. The next chapter will be written by how well it balances ambition with discipline — scaling EVs, defending SUV leadership, and ensuring that every rupee of growth continues to earn its keep.

That balance, more than headline growth, will decide whether Mahindra’s premium valuation becomes a long-term reward or a short-term peak.