Mahindra & Mahindra shares rise over 4% as Q4 results beat estimates. Should you buy, sell, or hold?

Shares of Mahindra & Mahindra (M&M) climbed as much as 4.3% on Tuesday to Rs 3,150 on BSE after the auto major posted stronger-than-expected March quarter results and announced a sharp hike in its annual dividend, drawing positive commentary from brokerages.

Mahindra & Mahindra on Monday reported a 22% year-on-year (YoY) jump in standalone net profit to Rs 2,437 crore for the March quarter, while revenue climbed 24% YoY to Rs 31,609 crore — both surpassing Dalal Street estimates. Consolidated profit after tax grew 20% YoY to Rs 3,295 crore during the quarter, with revenue from operations up 20% YoY at Rs 42,599 crore.

The automaker’s robust numbers were backed by double-digit growth across segments. Total vehicle sales rose 18% YoY to 2,53,028 units, including an 18% rise in utility vehicle (UV) volumes to about 1.49 lakh units and a 23% increase in tractor sales to 87,138 units. The company’s revenue market share in autos expanded 310 basis points (bps) to 23.5% in Q4, while its farm segment market share improved by 170 bps to 43.3% for FY25.

M&M’s board recommended a dividend of Rs 25.30 per share, marking a 20% increase for FY26, with a record date set for July 4, 2025. Following the results, the stock climbed as much as 2% on Monday to Rs 2,997 on the BSE.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), said, “We continued our outstanding performance in Q4 FY25, recording a significant 310 bps YoY gain in SUV revenue share and a 480 bps YoY gain in the LCV (<3.5T) market share. In tractors, we achieved our highest-ever Q4 market share at 41.2%, up 180 bps YoY.”

Amarjyoti Barua, M&M’s CFO, added, “Our results include nearly Rs 10,000 crore of cash generation in FY25, enabling us to continue creating shareholder value through strategic investments.”

Brokerages bullish on outlook

Brokerages have largely maintained a bullish stance on the stock, citing robust growth prospects across M&M’s core businesses.

Motilal Oswal retained its ‘Buy’ rating with a target price of Rs 3,482, noting that the company “reported a better-than-expected operating performance in Q4FY25. Believe M&M is well placed to outperform across its core businesses, led by a healthy recovery in rural areas and new product launches across both the UV and tractor segments.”

The brokerage has raised earnings estimates by 4% and 6% for FY26 and FY27, forecasting a revenue and EBITDA CAGR of about 13% over FY25- 27.

Nuvama also kept its ‘Buy’ call with an unchanged target price of Rs 3,700.

Also read | M&M Q4 Results: Standalone PAT jumps 22% YoY to Rs 2,437 crore; dividend declared at Rs 25.30/share

“Growth prospects robust. Expect the auto segment's revenue CAGR to be 16% on healthy demand for Thar, XUV 3XO and XEV.9e along with a pipeline of new models,” Nuvama said, projecting revenue and core earnings CAGR of 15% and 18%, respectively, over FY25-27, with return on invested capital sustained above 55%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)