M&M tractor sales fall 21% in September, SUVs up 14%

Mahindra & Mahindra Limited

sold 114,874 vehicles in September 2026, up 15%, but tractor sales fell 21% to 52,100. The stock dropped 3.05% to ₹2,860 on October 1, close to its 52-week low of ₹2,812. What happened: SUV sales rose 14% to 64,092 units. Domestic commercial vehicles rose 14% to 30,420. Domestic tractors fell about 23% to 50,208. April to September domestic tractor sales are still up 6% at 262,872. Why it matters: Tractors are the higher-margin business. In Q2 FY26 the core tractor PBIT margin was 20.6%, against 10.3% for autos. Each rupee of tractor revenue earns about twice the profit of a rupee of auto revenue. My view: The 21% fall looks worse than it is. September 2025 had 66,111 tractors, lifted by buying after the GST cut, so the base is high. The six-month trend is still positive. But the mix point still matters. If tractor volumes stay weak while SUVs grow, auto growth does not fully offset the profit loss. The stock trades near 18 times earnings, so it does not look expensive for a company with 20% ROE. I am not worried about SUVs. I want to see whether October and November tractor volumes return to growth on a normal base. If they do, the sell-off was a base effect. If not, margin estimates need a cut. What I am watching: ₹2,812 support, the 52-week low. ₹2,950, the September 30 close, as resistance. Tractor sales in the October update, and the Q2 FY27 margin split. Stance: Neutral. A close above ₹2,950 would turn me positive. A close below ₹2,812 makes me cautious. I do not hold a position in Mahindra & Mahindra Limited. Not investment advice.