M&M farm revenue falls 6% as Q2 tractor volumes decline

Mahindra & Mahindra Limited reported a 6% fall in Q2 F27 farm-equipment revenue to Rs 9,572 crore as total tractor sales declined 6% to 116,027 units following a festive-season shift. M&M’s consolidated farm profit after tax fell 9% to Rs 1,053 crore, although the business retained a 41.5% tractor market share.

What happened to M&M farm equipment in Q2 F27?

M&M’s consolidated farm-equipment revenue fell to Rs 9,572 crore in Q2 F27 from Rs 10,225 crore in Q2 F26, while consolidated profit after tax declined to Rs 1,053 crore. The reported year-on-year changes were a 6% revenue decline and a 9% decline in profit after tax, in contrast with 25% growth in both group consolidated revenue and profit after tax.

Tractor volumes moved in line with the revenue decline. M&M sold 116,027 tractors in Q2 F27, compared with 122,936 in Q2 F26, a reduction of 6,909 units or 6%. The Q2 figure was also below the 158,041 tractors sold in Q1 F27, while M&M reported a 41.5% market share in tractors for Q2 F27.

Profit before interest and tax, or PBIT, for the segment is stated after the net share of profit or loss of associates and joint ventures. M&M’s consolidated farm PBIT was Rs 1,376 crore in Q2 F27, down Rs 232 crore from Rs 1,608 crore a year earlier, and its PBIT margin declined to 14.4% from 15.7%.

Why did M&M tractor volumes decline in Q2 F27?

M&M attributed the Q2 F27 farm decline to a shift in festive-season timing. Dr. Anish Shah, Group Chief Executive Officer and Managing Director, described Farm as having experienced a marginal decline on account of the festive-season shift in the results announcement issued on November 5, 2026.

The disclosed volume data show tractor sales fell from 122,936 units in Q2 F26 to 116,027 units in Q2 F27. M&M did not provide monthly sales, pricing, inventory, regional-demand or dealer data in the release, so the filing does not quantify the contribution of festive timing relative to other factors behind the 6% decline.

The half-year comparison was different from the quarterly result. M&M sold 274,068 tractors in H1 F27, compared with 257,025 in H1 F26, an increase of 17,043 units. Q1 F27 sales of 158,041 tractors kept the first-half total above the prior-year period despite the lower Q2 volume.

How did M&M farm margins change?

M&M’s standalone farm-equipment PBIT margin fell 300 basis points year on year to 16.8% in Q2 F27 from 19.7% in Q2 F26. Standalone farm revenue rose by Rs 54 crore to Rs 8,594 crore, but standalone PBIT declined by Rs 243 crore to Rs 1,441 crore from Rs 1,684 crore.

The standalone figures differed from the consolidated farm segment, where revenue fell 6% to Rs 9,572 crore and the PBIT margin declined 130 basis points to 14.4%. The release supplies both reporting views but does not give a reconciliation for the differences in farm revenue and PBIT between standalone and consolidated reporting.

On a sequential basis, consolidated farm PBIT margin increased 20 basis points from 14.2% in Q1 F27 to 14.4% in Q2 F27. Rajesh Jejurikar, Executive Director and Chief Executive Officer of the Auto and Farm Sector, said the sequential improvement occurred despite significant increases in commodity prices, although the margin remained below 15.7% in Q2 F26.

How did M&M farm equipment compare with other businesses?

M&M’s farm business was the only one of its three reported major segments to record lower revenue in Q2 F27. Automotive consolidated revenue increased 39% to Rs 37,756 crore from Rs 27,171 crore, while services revenue rose 18% to Rs 11,821 crore from Rs 10,048 crore; farm revenue declined 6% to Rs 9,572 crore.

At group level, M&M reported consolidated revenue of Rs 57,553 crore, up 25% from Rs 46,106 crore, and consolidated profit after tax of Rs 4,588 crore, also up 25% from Rs 3,673 crore. Automotive consolidated profit after tax rose 55% to Rs 2,388 crore, while Farm’s profit after tax declined 9% to Rs 1,053 crore.

Vehicle and tractor volumes also moved in opposite directions. M&M’s standalone total vehicle sales increased 26% to 330,896 in Q2 F27 from 261,703 in Q2 F26, including 53,103 units sold by LMM and 22,864 battery electric vehicles sold by MEAL. Tractor sales fell 6% even as M&M maintained 41.5% market share.

What does M&M’s H1 F27 farm data show?

M&M’s H1 F27 consolidated farm revenue increased to Rs 22,072 crore from Rs 21,046 crore in H1 F26, a rise of Rs 1,026 crore. Consolidated farm PBIT, however, declined to Rs 3,157 crore from Rs 3,239 crore, and the PBIT margin decreased to 14.3% from 15.4%.

Standalone farm equipment showed the same revenue-and-margin contrast over the first half. Revenue increased to Rs 19,541 crore from Rs 17,726 crore, while PBIT decreased to Rs 3,468 crore from Rs 3,502 crore and PBIT margin fell to 17.7% from 19.8%.

The filing links the Q2 decline to festive-season timing and records management’s reference to commodity-price increases, but it does not disclose a farm-equipment target or volume forecast for the rest of F27. The reported H1 total of 274,068 tractors nevertheless remained above the 257,025 units sold in H1 F26.

Conclusion

M&M’s Q2 F27 farm result was lower across revenue, profit and tractor sales, even as the wider group reported 25% growth in consolidated revenue and profit after tax. Farm revenue fell 6% to Rs 9,572 crore, tractor sales declined 6% to 116,027 units and consolidated PBIT margin was 14.4%, while the business retained 41.5% tractor market share.

The next result will show whether the festive-season timing effect is followed by a recovery in tractor volumes and whether commodity-price increases continue to affect margins. M&M has not disclosed a farm-equipment target or forecast for the remainder of F27, leaving future volume and margin progression unresolved in the November 5, 2026 filing.