Mahindra & Mahindra Q2 FY27 revenue seen up nearly 26%

Mahindra & Mahindra Limited is expected to report Q2 FY27 revenue of ₹42,090 crore, nearly 26% higher year-on-year, while average analyst estimates place net profit at ₹4,673 crore, up about 3%. The expected performance follows higher vehicle volumes, although tractor sales, commodity costs and margin pressure remain key factors for M&M.

What is Mahindra & Mahindra expected to report for Q2 FY27?

M&M is expected to report a substantial rise in revenue for the quarter ended 30 September 2026, based on estimates cited ahead of its 5 November results announcement. The average estimate of 15 analysts puts quarterly revenue at ₹42,090 crore, compared with the corresponding period a year earlier, implying growth of almost 26%.

Average net profit is estimated at ₹4,673 crore, representing year-on-year growth of about 3%. The estimate range is wide, with Choice Equity Broking placing the highest profit forecast at ₹5,079 crore and Nirmal Bang Equities placing the lowest at ₹3,647 crore. This range reflects differing expectations on operating costs and profitability.

Analysts expect earnings before interest, tax, depreciation and amortisation, or EBITDA, of about ₹4,990 crore, based on the average of 11 estimates. The highest EBITDA forecast was ₹5,431 crore from Choice Equity, while YES Securities estimated ₹4,704 crore.

What drove M&M's sales growth during the September quarter?

M&M sold 401,100 units across segments in July-September, up 16% from a year earlier. This was the slowest growth in its dispatches over the preceding four quarters, but it still reflected a material increase in the company's overall volume base.

Cars and commercial vehicle sales rose 27% year-on-year to 332,071 units during the quarter. They were also 9% higher than the preceding quarter. Higher auto volumes are a central reason analysts expect revenue to increase strongly in the September quarter.

Tractor demand was weaker than the automotive business. M&M sold 116,027 tractors in the quarter, down 6% year-on-year and 27% sequentially. The decline in tractor volumes limited growth in total dispatches despite the stronger performance in cars and commercial vehicles.

The company entered its earnings announcement after reporting record domestic SUV sales of 73,338 vehicles in October 2026. Its total automotive volumes for that month were 131,109 vehicles. Mahindra Farm Equipment Business also sold 62,626 tractors in October, according to the information provided.

Why are margins central to M&M's Q2 FY27 result?

M&M's expected revenue growth does not automatically translate into similar profit growth because analysts have flagged input costs and operating margins as the central variables. The company had reported an EBITDA margin of 14.4% in the year-ago quarter and 12.2% in the preceding quarter.

For Q2 FY27, analysts expected the EBITDA margin to contract by 105 to 660 basis points year-on-year. Commodity cost pressure was also cited in the company's Q1 FY27 presentation as a factor affecting automotive profitability. A basis point is one-hundredth of a percentage point.

In Q1 FY27, automotive segment revenue rose 24.4% year-on-year to ₹31,033 crore, but segment result was flat at ₹2,212 crore. The segment margin therefore fell to 7.1% from 8.9% a year earlier and 9.5% in the March quarter. This comparison provides context for the market's focus on Q2 margins rather than revenue alone.

How did M&M perform in Q1 FY27?

M&M reported Q1 FY27 revenue from operations of ₹41,920 crore, up 23.0% from ₹34,083 crore a year earlier. Revenue was also 6.0% higher than the ₹39,554 crore reported in the preceding quarter, according to the quarterly comparison provided.

Net profit for Q1 FY27 was ₹3,685 crore, up 6.8% year-on-year from ₹3,450 crore. It was 1.4% lower than the ₹3,737 crore reported in Q4 FY26. The difference between strong revenue growth and modest profit growth reinforced concerns around margins and costs.

The farm equipment business reported Q1 revenue of ₹10,947 crore, up 19.2% year-on-year, while segment result rose 11.5% to ₹2,028 crore. Tractor volumes were 158,000 and core tractor margin was 19.2%, according to the company's presentation.

The company also said its Q1 FY27 consolidated revenue was ₹58,188 crore and consolidated profit after tax was ₹5,455 crore. These group-level figures are distinct from the standalone Q1 revenue and net profit figures cited in the quarterly comparison.

What operational developments should investors track?

M&M's board approved the sale of the truck and bus division to SML Mahindra on a slump-sale basis on 29 July. The provided information does not disclose the transaction value or completion timeline, but the decision is relevant to the company's future business structure.

Electric SUVs accounted for 12% of M&M's SUV sales in Q1 FY27, according to its presentation. Alongside volume growth in utility vehicles, this mix will remain relevant to the automotive segment's revenue and profitability trends.

The company has indicated a full-year FY27 revenue trajectory of about ₹1.65 lakh crore, representing 13% growth, according to the information provided. Consensus estimates cited alongside this outlook range from ₹1.56 lakh crore to ₹1.73 lakh crore. The Q2 result will offer a further measure of how automotive volumes, tractor demand and input costs are shaping that trajectory.

Conclusion

M&M heads into its Q2 FY27 announcement with analysts expecting revenue growth of nearly 26%, supported by stronger cars and commercial vehicle sales. However, estimated net profit growth of about 3% shows that commodity costs, automotive margins and the weaker tractor performance remain important to the earnings picture.

Investors will watch the reported EBITDA margin against the 12.2% margin in the preceding quarter and the 14.4% level a year earlier. They will also monitor management commentary on tractor demand, electric SUV mix, the truck and bus division sale to SML Mahindra, and progress toward the indicated FY27 revenue trajectory of about ₹1.65 lakh crore.