Mahindra & Mahindra (M&M) share price jumped nearly 3% on Wednesday, 6 May, following Q4 results. The company announced a 48.5% surge in consolidated profit after tax to ₹5,259.91 crore for the March quarter, primarily fueled by growth in its auto and agriculture sectors.

In the same period last year, the firm had reported a consolidated profit after tax (PAT) of ₹3,541.85 crore, according to M&M’s regulatory announcement.

For the fourth quarter of the previous fiscal year, consolidated revenue from operations reached ₹54,891.55 crore, compared to ₹42,585.67 crore in the same period last year, the company stated.

Total expenses rose to ₹49,615.48 crore, up from ₹39,113.61 crore a year prior, the company noted.

For FY26, the consolidated PAT reached ₹18,621.71 crore, up from ₹14,073.17 crore in FY25, reflecting a 32.32% increase.

The consolidated revenue from operations for FY26 was ₹1,97,792.78 crore, compared to ₹1,58,749.75 crore in FY25, according to the company’s report.

Regarding future expectations, the company indicated that the tractor industry is anticipated to grow at a low to mid-single-digit rate in the current year, while it aims for mid- to high-teen growth in the SUV segment for FY27.

Additionally, the company stated that its plans to increase manufacturing capacity are progressing as scheduled to support the volume growth it aims to achieve.

Should you buy, sell or hold?

According to Motilal Oswal Financial Services, the company’s management has guided for a strong outlook for FY27E, supported by a healthy product launch pipeline and positive consumer sentiment. The brokerage expects the tractor industry to grow in the mid-single digits, the UV segment in the mid-to-high teens, and the LCV segment in the high single digits.

Factoring in this outlook, the brokerage has raised its EPS estimates by 4% for FY27E and 3% for FY28E. It expects the company to deliver a CAGR of around 15% in revenue, 12% in EBITDA, and 13% in PAT over FY26–FY28.

Motilal Oswal has reiterated its ‘Buy’ rating on the stock, with a target price of ₹3,963, based on its March 2028 sum-of-the-parts (SoTP) valuation.

According to Nuvama Institutional Equities, the company reported strong Q4FY26 performance, with revenue rising 26% year-on-year to ₹39,550 crore, surpassing its estimate of ₹38,150 crore. EBITDA grew 19% to ₹5,560 crore, slightly above the estimated ₹5,440 crore, driven by the revenue outperformance.

Factoring in higher auto volumes, the brokerage has raised its FY27 and FY28 EPS estimates by 3% each. It expects auto revenue to clock a CAGR of 15% over FY26–28, supported by healthy demand and new launches, while farm segment growth is likely to moderate to around 5% CAGR after a strong 25% growth in FY26.

Overall, Nuvama expects revenue and core earnings to grow at a CAGR of 13% and 7%, respectively, over FY26–28, with a return on invested capital (RoIC) of around 60%. The brokerage has retained its ‘Buy’ rating, raising the target price to ₹3,800 from ₹3,600, based on 25x FY28E core EPS and an investment value of ₹580 per share.