Synopsis: With a 3-year compounded return of 38 percent, the stock gained attention after dismissing Indonesia import halt rumours and securing an export order surpassing its total FY25 export volumes of 34,700 units.
A large-cap Indian automotive and farm equipment manufacturer is in focus after dismissing rumours of an export order suspension from Indonesia. The company, which operates across SUVs, commercial vehicles, and tractors, reported a strong 39 percent YoY net profit growth in Q3FY26 and secured an export order exceeding its entire FY25 export volumes.
With a market cap of more than Rs 4 lakh Cr, Mahindra & Mahindra Ltd saw its stock hit an intraday high of Rs 3,271 which is still 2 percent lower than the previous close of Rs 3,334, possibly reflecting broader market weakness amid Middle East geopolitical tensions. The company stock has given a compounded return of 38 percent in the last three years.
News
The company has announced that it has received an export order for Agrinas Pangan Nusantara aims to bolster Indonesia’s rural logistics and national food security. The company is going to supply Nashik-manufactured Scorpio Pik Up that will support village-level cooperatives, bridging the gap between farmers and markets. This landmark partnership significantly exceeds Mahindra’s total export volumes recorded in fiscal year 2025.
Recently, Mahindra & Mahindra clarified that it has received no official communication from Indonesia regarding the alleged suspension of its 35,000-unit Scorpio Pik Up order. The company confirmed an advance payment was already received for this major export deal.
The Scorpio Pik Ups are specifically designed for durability and low operating costs to handle tough rural Indonesian terrain. This initiative, part of the KDKMP Project, empowers villages to become independent centers of economic growth. Mahindra continues to comply with all relevant disclosure norms.
Export Volume and Margins
In FY25 the company saw an export volume of 34,700 units. In QFY26 company saw its export volume in the farm segment grow by 36 percent on YoY basis, while the overall margin for the same segment grew by 23 percent, with margins improving by 240 bps over the same time frame. On the other hand, auto business also saw a 23 percent YoY growth with margins only growin by 90 bps.
Business & Financial Overview
Mahindra & Mahindra Ltd is a leading Indian multinational automotive and farm equipment manufacturer. Part of the Mahindra Group, it produces SUVs, commercial vehicles, tractors, and electric vehicles. The company has a strong domestic presence and growing global exports, focusing on innovation, sustainability, and rural mobility solutions.
In the latest quarter the company saw a YoY revenue growth of 26 percent, going from Rs 41,470 Cr in Q3FY25 to Rs 52,100 Cr in Q3FY26, while the QoQ went up by 13 percent from Rs 46,106 Cr in Q2FY26. The YoY Net Profits growth is at 39 percent, going from Rs 3,624 Cr in Q3FY25 to Rs 5,021 Cr in Q3FY26, while the QoQ growth stood at 27 percent from Rs 3,964 Cr in Q2FY26.
The company has a 3 year sales CAGR of 21 percent, while the TTM is at 23 percent. The company’s 3 year profit CAGR is at 27 percent, while the TTM number is at 29 percent. The company also has a ROCE of 14 percent and a ROE of 18 percent.
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