M&M

Mahindra & Mahindra Ltd. extended its rally for a second straight session on Friday, emerging among the top gainers on the Nifty 50 after reporting largely in-line earnings for the June quarter. Global brokerages remained positive on the stock, citing the company's leadership in the utility vehicle segment, a resilient tractor business and strong long-term growth prospects. The stock rose 3.1 percent to ₹3,387 in early trade after gaining 1.92 percent in the previous session following the earnings announcement. Despite the recent recovery, Mahindra & Mahindra shares remain down 12.4 percent so far this year, compared with a 7 percent decline in the Nifty 50. The company has a market capitalisation of around ₹4.1 lakh crore. Among brokerages, CLSA reiterated Mahindra & Mahindra as its top pick in the automobile sector, supported by continued gains in utility vehicle market share, a resilient outlook for the tractor business, strong traction in battery electric vehicles and ongoing capacity expansion. The brokerage noted that its projections assume flat tractor volumes for the full year, implying a decline of more than 6 percent during the remainder of FY27. For the June quarter, Mahindra & Mahindra reported results that were broadly in line with analyst estimates. Standalone revenue increased 23 percent year-on-year to ₹41,920 crore, slightly ahead of expectations, driven by a 21 percent rise in overall volumes and a 23 percent increase in automotive volumes. Standalone net profit grew 6.8 percent year-on-year to ₹3,685 crore. However, EBITDA margin contracted 210 basis points to 12.2 percent from 14.3 percent in the year-ago period, indicating pressure on profitability. On a sequential basis, overall volumes declined 7 percent, while automotive volumes fell 2 percent.