Mahindra & Mahindra shares rise 22% in 2025: Analysts from Morgan Stanley and others highlight growth plans after investor day

Mahindra Group’s auto sector posted consolidated revenue of ₹90,825 crore in FY25, marking a 3.2x increase over FY20, according to its investor presentation.

Outlining its ambition to become the world’s fastest-growing SUV brand, the group said its “authentic, adventure-ready products” will continue to tap the 70% share of India’s passenger vehicle market and expand globally into right-hand-drive markets such as the UK, Australia, New Zealand and South Africa, as well as left-hand-drive markets in Europe.

The company also said it aims to electrify India’s last-mile mobility segment by putting one million EVs on the road by 2031. Additionally, it plans to scale up electric commercial vehicle exports to more than 10 global markets.

For Tech Mahindra, the turnaround is expected to be completed by FY27, with long-term goals focused on delivering profitable and sustainable growth ahead of peer averages, the group stated.

Mahindra & Mahindra recorded organic growth of around 25% between FY22 and FY25. For the FY26E–FY30E period, the company expects organic growth in the range of 15–40% across its businesses.

M&M’s automotive business expects its consolidated LCV revenue to grow eightfold between FY20 and FY30.

Here is what analysts said after the investors’ day

Analysts at CLSA said M&M remains confident of sustaining its leadership in SUVs, tractors and LCVs. The company expects 15–40% organic revenue CAGR during FY26–30, compared with 25% CAGR over the past five years. It has also raised its tractor volume growth guidance for FY25–30 to 9% CAGR from 7% and plans to grow LCV revenue by 1.6x over the same period.

Meanwhile, analysts at CITI said M&M’s key focus areas include international expansion, technology-led initiatives and growth in farm machinery. They added that the company has also teased a new SUV model scheduled for launch on November 27.

Nomura highlighted M&M’s guidance of 15–40% organic growth across businesses over FY26–30. It noted that Tech Mahindra is targeting 1.3x revenue growth between FY20 and FY27E, with margins expected to improve to 15%. Analysts also consider the stock’s current valuation of 13.1x EV/EBITDA to be attractive.

Morgan Stanley analysts said the tractor industry growth outlook for FY25–30 has been raised to 9% CAGR from 7%. They noted that LCVs stand to benefit from GST rate cuts, while UVs have seen a 3% increase in top-end variant mix. The firm added that M&M is targeting US$2 billion in value by 2030, supported by strong progress in its growth gems.

M&M share price

At 11:40 AM, shares of M&M were trading at ₹3,757.90 apiece on the National Stock Exchange (NSE), rising 1.11%. The stock had opened at ₹3,716.70 apiece and jumped 1.4% to its intraday high of ₹3,769.70 per share.

M&M shares have risen 4% over the past month and gained 21.5% in the last six months. Since the start of 2025, the stock has surged 22%. The company currently commands a market capitalisation of ₹4.51 lakh crore.

Shares of the company had touched their one-year high of ₹3,781 apiece on November 21, 2025, while their 52-week low of ₹2,425 was hit on April 7, 2025.

M&M Q2 earnings

Mahindra & Mahindra reported a consolidated net profit of ₹3,673 crore for the second quarter of the current fiscal year (Q2 FY26), up 15.8% year-on-year (YoY) against ₹3,171 crore.

The company's revenue from operations jumped 21.7% YoY to ₹45,885.40 crore during the September quarter, as compared to ₹37,689.04 crore in Q2 FY25.

The automobile major's earnings before interest, taxes, depreciation and amortisation (EBITDA) stand at ₹8,708 crore for the September quarter, up 26.2% from ₹6,899 crore in the year-ago period. Margin is at 18.9%, against 18.3% a year ago.