Mahindra & Mahindra shares jump 5% for second day after Q2 show; what’s powering the auto stock?

Mahindra & Mahindra shares surged for a second consecutive trading session, rising 5% intraday on Friday, November 6, as investors focused on the company’s strong financial performance and automotive sales growth in the July to September quarter of FY27.

NSE data showed that Mahindra & Mahindra shares jumped 5% to hit an intraday high of ₹3,283.80 apiece on Friday’s market in comparison to ₹3,127.50 apiece at the previous equity market close.

Trading activity surpassed 61.15 lakh equity shares as of the noon deals, triggering the high-volume gains on November 6, due to the elevated investor interest after the quarterly earnings.

The positive outlook combined with the earnings growth potential from Mahindra’s utility vehicle segment is expected to improve the financial performance in the upcoming quarters, while farm segment continue to lag with a conservative outlook.

Market experts predict that upcoming launches, strong traction in electric vehicle segments, ongoing capacity expansion will power the company’s growth despite cost pressure in the market.

Friday's rally comes after a 6% surge on November 5, right after the company posted its Q2 results on the stock exchanges.

How were the Q2 results?

In its Q2 results, Mahindra & Mahindra posted a 25% year-on-year (YoY) growth in its consolidated net profit after tax to ₹4,588 crore, with key support from the company’s 25.3% increase in revenue from core operations in the period.

The revenues increased 25.3% YoY to ₹57,515 crore in the September quarter of FY27, compared with ₹45,885 crore a year earlier, as per the consolidated financial statements.

The healthy revenue gains were largely powered by the significant improvement in the company’s automotive segment income in the Q2 results, while the company’s tractor sales contracted given weak monsoons and low reservoir levels in the country.

M&M’s management has also decided to cut its FY27 tractor sales outlook to flattish growth levels, while experts predict overall volumes are likely to decline 3% in the current fiscal year.

“Auto continued to grow on the back of strong consumer demand, while Farm experienced a marginal decline on account of the festive season shift,” said Anish Shah, the Group CEO and Managing Director of Mahindra & Mahindra.

The margins remained under pressure due to the elevated material costs, with EBITDA margins contracting 127 basis points to 17.7% in the September quarter of the current fiscal year, compared to 18.9% earlier levels a year ago.

Data showed that M&M’s cost of raw materials increased 32.3% YoY to ₹36,909 crore in the second quarter, from ₹27,887 crore in the previous year.

What do analysts predict next?

After reviewing the Q2 results, analysts from Citibank said that the financial performance of Mahindra & Mahindra was ahead of their expectations, with higher-than-expected margins despite a contraction, as the management remains positive on volume growth to be boosted by capacity expansion and new launches.

“However, tractor volume growth guidance was lowered to flat YoY trends in FY27 vs 5% earlier, given weak monsoons and low reservoir levels, especially in Maharashtra and Karnataka,” said Citibank experts.

In line with the outlook, Bernstein analysts also said that the next phase of growth for the company will have to come with less help from the Tractor cycle, with management cutting its guidance for the upcoming period.

“Contributions from businesses beyond standalone Auto and Farm franchises are helping the group sustain growth as its core businesses navigate a tougher environment,” said Bernstein analysts.

On the conservative outlook for the farm segment, global investment firm Jefferies expects the tractor volumes to decline 3% in FY27 and 6% in FY28.

“M&M remains top auto pick, backed by sustained UV market share gains driven by strong execution and upcoming launches, strong traction in BEVs, ongoing capacity expansion to support demand and an attractive valuation,” said CLSA analysts.

M&M shares up over 13% in 5 days

NSE data showed that Mahindra & Mahindra shares have delivered 13.6% returns to investors in the last five trading sessions, and have given 13% returns on their investment in the past one-month period.

The stock has lost 14% on a year-to-date (YTD) basis, and has declined 10.7% in the past one-year period.

On a longer-term basis, M&M shares have rallied more than 269% in the last five years and have gained nearly 117% in the last three years, according to the exchange data.

Shares of Mahindra & Mahindra surged to their 52-week high of ₹3,839.90 apiece on January 5, 2026, while the 52-week low was at ₹2,744.30 apiece on October 8, 2026.

The automaker’s market capitalisation (m-cap) was at more than ₹4.02 lakh crore as of the trading session on Friday, November 6.