Nomura Recommends "Buy" for Mahindra & Mahindra After Stellar Q3 Performance

Mahindra & Mahindra (M&M) has once again proven its dominance in the Indian automotive and farm equipment sectors. Following the release of its Q3 FY26 results on February 11, 2026, global brokerage firm Nomura reiterated its "Buy" rating on the stock, citing robust volume growth and expanding market shares across its core segments.

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Q3 FY26: Breaking the ₹50,000 Crore Barrier

The third quarter was a historic milestone for the Mahindra Group. For the first time, the company’s consolidated revenue surpassed the ₹50,000 crore mark in a single quarter.

Key Financial Highlights (Standalone):

• Net Profit: Jumped 33% YoY to ₹3,931 crore.
• Revenue from Operations: Rose 26% YoY to ₹38,517 crore.
• EBITDA: Grew 27% YoY to ₹5,668 crore.
• EBITDA Margin: Improved slightly to 14.7%.

{{CHART:M&M}}

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Segment-Wise Dominance

Nomura’s bullish stance is largely driven by M&M’s ability to maintain leadership in competitive markets while improving profitability.

1. Automotive Segment: The SUV Powerhouse

The automotive division saw a 23% growth in volumes, reaching over 302,000 units.

• SUV Leadership: M&M remains the #1 SUV manufacturer by revenue market share, which climbed to 24.1% (a 90 bps increase).
• New Launches: Recent launches like the XUV 7XO and the electric XEV 9S have seen "exceptional" booking numbers, with nearly 94,000 units booked on day one.

2. Farm Equipment: Resilience in Tractors

Despite a slight dip in overall market share, M&M’s tractor business remains a powerhouse.

• Market Share: Maintained a dominant 44.1% share for the year-to-date (YTD).
• Margins: The segment saw a significant 240 bps expansion in margins, reflecting operational excellence even amidst fluctuating demand.

3. "Growth Gems" and Services

The company’s diversified portfolio, which it refers to as "Growth Gems," also showed breakout performance:

• Mahindra Logistics: Returned to profitability after 11 quarters.
• Mahindra Lifespaces: Reported a 5x jump in PAT.
• Tech Mahindra: Showed steady margin expansion, contributing to the group's overall strength.

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Why Nomura Says "Buy"

Nomura has designated M&M as its top automobile sector pick. The brokerage has set a target price of ₹4,355, representing significant upside from the current trading levels of approximately ₹3,700.

Nomura’s Rationale: "M&M's strong SUV volume growth (projected at 18% for FY26) and the successful rollout of its EV portfolio provide a clear runway for growth. The company’s focus on disciplined execution and a robust product pipeline makes it the most resilient player in the Indian auto space."

Technical View

While the fundamentals are strong, technical analysts suggest a "buy-on-dips" strategy. The stock saw a slight pullback post-earnings due to profit-booking, with strong support levels identified around the ₹3,500 – ₹3,600 zone.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Stock investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.