Overview
- M&M reported Q2 standalone revenue of Rs 35,079.8 crore, up 21.3% year on year, with operating margin improving 20 bps to 18.6% and net profit rising 17.7% to Rs 4,520 crore.
- SUV volumes jumped 26.9% to 145,500 units and tractor sales climbed 32% to 1.22 lakh, with management later raising its tractor industry growth outlook to 10–12%.
- Nomura reaffirmed M&M as its top OEM pick with a Buy rating and a target price of Rs 4,355, forecasting SUV growth to outpace the industry over FY26–FY28 and expecting EV EBITDA margins to reach double digits with PLI support.
- Nuvama kept a Buy with a Rs 4,200 target, projecting a 15% auto revenue CAGR for FY25–FY28 and flagging near‑term launches, including a seven‑seat XEV 9s electric SUV slated for November 27.
- Peer updates showed softer trends, with Maruti Suzuki’s domestic volumes and margins under pressure and Hyundai Motor India posting a year‑on‑year decline in domestic sales during the quarter.