M&M Q3 results preview: PAT to jump 34% YoY, revenue may rise 29% on volume-led growth. 6 things to watch – News Air Insight

Auto major Mahindra & Mahindra (M&M) is expected to deliver a strong Q3FY26 performance, led by robust growth in auto and farm volumes amid healthy realisations and operating leverage. The year-on-year earnings are likely to remain strong in the range of Rs 3,761 crore to Rs 3,984 crore, witnessing a growth of 27% to 34%, according to estimates given by four brokerages. However, the company is also expected to take a double-digit hit in its October-December quarter net profit due to higher input costs.

Revenue is seen to grow up to 29% to between Rs 39,260 crore and Rs 39,340 crore, the estimates revealed.

The estimates from Nuvama Institutional Equities, YES Securities, ElaraCapital and JM Financial were considered.

The maker of Thar and ScorpioN will announce its Q3 earnings on Wednesday, February 11.

Here is what estimates indicate for these six key metrics:

1) PAT

• Nuvama estimates adjusted PAT at Rs 3,896 crore, up 31% YoY but down 14% QoQ.
• YES Securities pegs PAT at Rs 3,761 crore, up 27% YoY and down 17% QoQ.
• ElaraCapital expects PAT of Rs 3,890 crore, reflecting 31% YoY growth and a 14% QoQ decline.
• JM Financial is relatively more optimistic, forecasting PAT of Rs 3,984 crore, up 34% YoY but down 12% QoQ.

2) Revenue

• Nuvama estimates revenue at Rs 39,305 crore, up 29% YoY and 18% QoQ.
• YES Securities expects revenue of around Rs 39,340 crore, up 29% YoY and 18% QoQ.
• ElaraCapital pegs revenue at Rs 39,260 crore, reflecting a 29% YoY and 18% QoQ uptick.
• JM Financial forecasts revenue of Rs 39,310 crore, up 29% YoY and 18% QoQ.

3) EBITDA

• Nuvama expects EBITDA at Rs 5,920 crore, up 32% YoY and 22% QoQ.
• YES Securities estimates EBITDA of Rs 5,651 crore, up 27% YoY and 16% QoQ.
• ElaraCapital pegs EBITDA at Rs 5,810 crore, up 30% YoY and 19% QoQ.
• JM Financial forecasts EBITDA of Rs 5,834 crore, up 31% YoY and 20% QoQ.

4) Margin

Nuvama expects EBITDA margin to improve to 15.1%, up 43 bps YoY and 52 bps QoQ, aided by better farm segment profitability.
YES Securities sees margins at 14.4%, down 30 bps YoY and 20 bps QoQ, citing higher raw material and staff costs.

5) Volume

YES Securities notes overall volumes grew 23.2% YoY and 17.5% QoQ, with tractor volumes rising 22.8% YoY and 21.7% QoQ. Meanwhile, the blended average selling prices stood at around Rs 8.66 lakh per unit, up 4.6% YoY.
Nuvama highlights strong growth in both auto and farm segments, supported by improved auto realisations on account of a higher EV mix.

6) Key monitorables

Nuvama flags demand outlook, new product timelines and the company’s strategy to meet CAFÉ-3 emission norms as key factors to watch.
JM Financial expects continued strength in volumes and operating performance, while tracking cost pressures and margin sustainability.
YES Securities highlights input cost trends and their impact on margins going forward.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)