Mahindra & Mahindra Q2 FY26: PAT up 28%, margin 14.5%

Market reaction: stock rises after Q2 print

Mahindra & Mahindra Ltd (M&M) shares gained in morning trade after the company reported its September quarter (Q2 FY26) numbers that were described as a beat on most parameters. The stock rose 1.4% to Rs 3,630 in early trading on Thursday. Another market update in the same information set also noted the shares were up close to 1% by the end of trade on the BSE.

The immediate move reflected a familiar pattern seen in results seasons: investors rewarded a profit beat even when some revenue lines were described as slightly below expectations. Commentary included that margins came in stronger than what some analysts had pencilled in.

The quarter in focus: period and approvals

The results covered the quarter ended 30 September 2025, which is the second quarter of FY26 for M&M. According to the company update included in the material, the Board of Directors approved the financial results on Mumbai, November 4, 2025.

The release highlighted operating performance across businesses and pointed to continuing strength in Auto and Farm. It also flagged performance in financial services and Tech Mahindra, indicating the quarter was not only about the core manufacturing segments.

Standalone performance: profit, revenue, EBITDA and margin

On a standalone basis, M&M reported net profit of Rs 4,521 crore, up 18% year-on-year, helped by strong SUV and tractor sales. Revenue from operations increased 21% year-on-year to Rs 35,080 crore.

EBITDA rose 23% to Rs 6,467 crore, and the operating margin expanded marginally to 18.43% from 18.22% in the comparable period. The numbers were repeatedly linked to demand for higher-margin SUVs and a rebound in rural markets that supported tractors.

Management commentary referenced festive demand and market share gains across segments, alongside a note that the impact of recent GST cuts would be more visible in Q4. The company also raised guidance on tractor sales, according to the text.

Consolidated picture: PAT cited at Rs 3,673 crore

Alongside the standalone discussion, the material also included a company statement that consolidated profit after tax (PAT) for Q2 FY26 stood at Rs 3,673 crore, up 28%. The company added that PAT growth was 28% excluding one-time gains from land sales, the SML Isuzu tax impact, and prior-period production-linked incentive (PLI) benefits.

There were multiple mentions of consolidated revenue growth in the same set of notes, including a reference to revenue rising 22% year-on-year. Separately, a revenue figure of Rs 33,422 crore was repeatedly cited in market commentary for the quarter, including comparisons to estimates.

QoQ snapshot from the quarterly table

A quarterly table in the provided data set compared Sep 25 with Jun 25 on a quarter-on-quarter (QoQ) basis (figures in Rs crore, except per-share values). It showed:

• Total revenue at Rs 45,885.40 crore in Sep 25, up 0.99% QoQ.
• Operating income at Rs 7,260.20 crore, up 8.68% QoQ.
• Net income at Rs 3,673.32 crore, down 10.04% QoQ.
• Diluted normalised EPS at 31.30, down 15.55% QoQ.

The same table showed operating expenses broadly stable QoQ, while depreciation/amortisation increased 7.84% QoQ.

Demand drivers: SUVs, tractors and festive season support

The operational narrative was consistent across the updates: SUVs remained a key earnings driver and tractors benefited from rural demand. The company reported 13% growth in vehicle sales and a 32% jump in tractor volumes, with management pointing to strong festive demand.

Margin commentary also suggested that the tractor segment contributed meaningfully to profitability. One analyst note included in the material said tractor segment margin was “almost 20%” and represented a gain of about 400 basis points year-on-year, while auto margin was described as around 9%.

Margins in focus: 14.2%-14.5% commentary

Market participants highlighted that margin performance was a positive surprise. One segment of commentary said margin came in at 14.5% versus an expectation of 13.9%. Another noted the Street was looking for 14.2%, while the company delivered 14.4%, despite higher electric vehicle (EV) sales in the quarter.

The emphasis on margins mattered because the quarter was also described as being affected by a GST transition, with automotive profits still rising but influenced by that transition.

Segment and subsidiary references: agri, auto and Mahindra Electric

The information set included specific profitability references by business:

• Agricultural profits were cited as up 54%.
• Automotive profits were cited as up 14%, with an impact from the GST transition.
• Mahindra Electric EBITDA was stated at Rs 173 crore for the quarter.

The company commentary also mentioned that financial services delivered 45% growth in PAT while keeping asset quality strong, and that Tech Mahindra saw EBIT improvement of 250 bps as part of a margin expansion journey.

Key numbers table

What changed versus expectations

The updates repeatedly framed the quarter as a “profit beat” even where revenue was described as slightly below market expectations. One note said profitability came in higher at about Rs 4,500 crore compared with an estimate of Rs 3,978 crore, while revenue was described around Rs 33,400 crore versus an estimate of Rs 33,800 crore.

The same notes suggested the market focus was on margins and profitability resilience, including the ability to hold margin levels even with higher EV sales.

Conclusion: earnings strength, with Q4 cues on GST impact

M&M’s Q2 FY26 updates pointed to strong execution in SUVs and tractors, with margins holding up and profit metrics coming in ahead of expectations in several analyst notes. The company also indicated that the effect of GST cuts should become clearer in Q4, while tractor sales guidance was raised.

The next key watchpoints flagged in the material are how demand trends evolve through the festive season and how the stated GST-related impacts and one-off adjustments flow through in subsequent quarters.