Synopsis: Mahindra & Mahindra Ltd most diversified automobile company, has posted its Q3 results in which Revenue from operations rose by 24% YoY, and its Net Profit YoY rose by 38.5% and lets also see whether the company’s growth drivern more by SUVs or Tractors in Q3.
The shares of one of the most diversified automobile company, which specializes in a diverse range of industries, notably automotive, where it’s a leader in SUVs and utility vehicles, and farm equipment, are in focus following their Q3 Results. In this article, let’s also explore whether Mahindra & Mahindra Ltd’s growth is driven More by SUVs or Tractors in Q3.
With a market capitalization of Rs. 4,52,911.85 crores on the day’s trade, the shares of Mahindra & Mahindra Ltd rose upto 1.1 percent, making a high of Rs. 3716.65 per share compared to its previous closing price of Rs. 3674.65 per share.
What Happened
Mahindra & Mahindra Ltd, in a diverse range of industries, notably automotive, where it’s a leader in SUVs and utility vehicles, and farm equipment are in the spotlight following their Q3 results as follows:
Its Income from operations rose by 26 percent YoY from Rs. 41,470.05 Crores in Q3FY25 to Rs. 52,099.75 Crores in Q3FY26, and it rose by 13 percent QoQ from Rs. 46,105.67 Crores in Q2FY26 to Rs. 52,099.75 Crores in Q3FY26.
Its Net Profit YoY rose by 38.5 percent from Rs. 3,624.48 Crores in Q3FY25 to Rs. 5,021.47 Crores in Q3FY26, and on a QoQ basis, it rose by 26.6 percent from Rs. 3,963.75 Crores in Q2FY26 to Rs. 5,021.47 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 41.85, compared to Rs. 32.90 in the previous quarter.
Highlights of Quarter
The company continues to lead across key segments, reporting a strong RoE of 20.1% (annualised). It remains #1 in SUVs with a revenue market share of 24.1%, and dominates the LCV (<3.5T) segment with a 51.9% market share. It also holds the top position in tractors at 44.0%, and leads the electric 3-wheeler market with a 38.6% share.
Which segment drives M&M’s Growth?
For Q3 FY2026 (ended 31st December, 2025), the total segment revenue was ₹53,506.83 crores, which is an increase compared to ₹42,534.51 crores in Q3 FY2026. This shows a growth of approximately 25.7%.
- The Automotive segment increased from ₹23,390.69 crores in Q3FY2025 to ₹30,370.37 crores in Q3FY2026, marking a growth of around 29.8%.
- The Farm Equipment segment also grew from ₹9,536.94 crores in Q3FY2025 to ₹11,500.69 crores in Q3FY2026, an increase of around 20.5%.
- Financial Services saw a decent growth, increasing from ₹4,759.65 crores in Q3 FY2025 to ₹5,435.15 crores in Q3 FY2026, an increase of around 14.1%.
- The Industrial Businesses and Consumer Services segment grew from ₹4,847.23 crores in Q3 FY2025 to ₹6,200.62 crores in Q3 FY2026, a rise of around 27.9%
In summary, the total revenue for Q3FY2026 showed strong growth across all segments compared to the same quarter in the previous year, with particularly significant gains in the Automotive segment.
Market Share & Volume Growth Analysis
Auto: Auto quarterly volumes stood at 302k units (including LMM & MEAL sales), marking a strong 23% growth, while UV volumes reached 179k units.
In Q3, SUV revenue market share improved to 24.1%, up 90 b and its Standalone PBIT rose 27% to Rs 2,684 crore, with margins at 9.7%; excluding eSUV contract manufacturing, margins were higher at 10.6%, reflecting a 90 bps expansion.
Farm: In Q3, the Farm segment posted a market share of 44.0%, slightly down 20 bps, with volumes rising 23% to 150k units. Standalone PBIT surged 41% to Rs 2,061 crore, with margins improving 240 bps to 20.5%.
Services: In Services, MMFSL reported AUM growth of 12%, and PAT nearly doubled, with GS3 under 4%.
Tech Mahindra’s EBIT margin rose 290 bps to 13.1%, and Mahindra Lifespaces PAT increased fivefold, supported by residential pre-sales of Rs 572 crore, up 71%. Along with, Club Mahindra room keys grew 6%, while Mahindra Logistics delivered revenue of Rs 1,898 crore, up 19%, returning to profitability after 11 quarters.
Mahindra & Mahindra Ltd. is a leading Indian multinational company, part of the Mahindra Group, known for manufacturing a wide range of vehicles, including SUVs, tractors, and commercial vehicles. The company has a strong presence in sectors such as automotive, agriculture, IT, aerospace, and renewable energy.
Mahindra is recognised for its innovation, with significant strides in electric vehicles through Mahindra Electric. With a focus on sustainability and growth, the company operates globally, impacting industries and communities with its vision of “Rise”.
The company demonstrates strong financial performance with a ROCE of 13.9% and ROE of 18.0%, reflecting efficient capital utilisation and solid returns for shareholders. Its stock trades at a P/E of 28.6, slightly below the industry average of 32.3, indicating potential relative value.
Over the past five years, the company has achieved impressive profit growth, posting a CAGR of 113%, while maintaining a healthy dividend payout of 20.1%, highlighting both growth and shareholder returns.
Conclusion: Based on M&M’s Q3 performance, both SUVs and tractors are driving growth, but SUVs appear to lead the momentum. The automotive segment grew ~29.8% YoY, with SUVs maintaining a strong 24.1% market share and expanding margins, while the farm equipment segment grew ~20.5% with tractors holding a 44% market share.
In absolute PBIT terms, SUVs (part of the automotive segment) contributed Rs 2,684 crore versus Rs 2,061 crore from tractors, highlighting slightly stronger profitability and growth momentum from the SUV business. Overall, SUVs are the primary driver of M&M’s growth, with tractors providing steady support.
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