M&M Q4 results: Revenue and net profit could see double-digit growth; focus on sales volume and dividend

Automobile giant Mahindra & Mahindra (M&M) is set to announce its March quarter (Q4FY26) results on Tuesday, May 5. Experts believe M&M could report double-digit growth in revenue and net profit supported by robust sales in the automotive and tractor segments.

M&M standalone revenue is expected to increase 19% to 21% YoY to ₹37,900 to ₹38,550 crore, while its net profit could rise by 33% to 42% YoY to ₹3,250 to ₹3,470 crore.

M&M reported a standalone revenue of ₹31,609 crore in the March quarter of FY25 and ₹38,942 crore in the previous quarter. Meanwhile, its net profit stood at ₹2,437 crore in Q4FY25 and ₹3,931 crore in Q3FY26. Sales volume is expected to rise 22 to 25% YoY to 3.90 to 3.94 lakh units supported by strong growth in tractors and passenger vehicles.

Investors will keep an eye on the company’s volume growth and margins. Management commentary on demand outlook for tractors and passenger vehicles. Impact of high input cost on profitability and new product timelines will also closely tracked.

Ahead of the Q4 result announcement, M&M shares are trading 0.6% lower around ₹3,087 apeice on NSE. So far this year, M&M shares have fallen over 16% amid sell-off in broader markets.

Technical outlook

Mahindra & Mahindra remains in a consolidation phase after the recent correction and is still trading below its 20-day and 50-day EMAs around ₹3,133 and ₹3,214. The immediate support is placed near ₹3,032, which has been defended multiple times in recent sessions, while the 200-day EMA around ₹3,301 is the key resistance zone. A decisive close above ₹3,214 could improve short-term momentum. On the downside, a close below ₹3,032 would weaken the structure and may bring fresh selling pressure.

Options outlook

M&M’s at-the-money (ATM) options for 26 May expiry is at 3,120, with both call and put options priced at ₹234. This implies a potential price swing of approximately ±7.6% based on the 4 May closing price.

For further understanding, let’s take a look at the historical price behaviour of M&M around its earnings announcement.

Options strategies for Mahindra & Mahindra

The options data for M&M's 26 May expiry shows a potential price movement of ±7.6%, providing strategic opportunities for traders based on their volatility expectations.

Strategies based on volatility expectations:

• Increased volatility: Traders who expect that the volatility in Mahindra & Mahindra to increase can consider a long straddle strategy. This strategy involves buying both an ATM call and an ATM put option with the same strike price and expiry date. This approach will benefit if the price of M&M moves significantly beyond the range of ±7.6% in either direction.
• Lower volatility: Traders who expect volatility will remain low, a Short Straddle may be more suitable. This strategy involves selling both an ATM call and an ATM put option with the same strike price and expiry, and profiting if the price of M&M stays within ±7.6%.

• Traders expecting continuation of the bearish momentum from its 20-day EMA, can consider a bear put spread strategy. This strategy involves buying a put option and simultaneously selling another put option with a higher strike price of the same expiry. This approach lowers the initial cost but also limits potential profits.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. The information is only for educational purposes. We do not recommend any particular stock, securities or strategies for trading. The securities mentioned in this article are purely illustrative and not recommendations. Investors are advised to do their own research before investing.