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What is the story about?
Mahindra & Mahindra (M&M) is targeting mid- to high-teen growth in its SUV portfolio for FY27, even as it flagged risks to tractor demand from an uncertain monsoon outlook.
Speaking to CNBC-TV18, Rajesh Jejurikar, Executive Director and CEO of the Auto & Farm Sector, said the company is building on a strong FY26 performance across segments. “We’re very happy with the way FY26 has gone… it’s been a year where we’ve literally fired on all cylinders,” he said, highlighting robust gains in SUVs, electric vehicles, and commercial segments.
Jejurikar noted that the SUV business remains a key growth driver. “For FY27, we are setting ourselves a strong target of mid- to high-teens growth in the SUV portfolio,” he said, adding that the company continues to gain market share and sees sustained customer demand.
However, the outlook for the tractor segment remains more measured, with the company factoring in weather-related risks. “The reason we are starting with mid-single-digit growth right now is that while there is a probability of rainfall being lower than expected… there are other positive enablers,” he said. He pointed to healthy reservoir levels and continued government spending in rural and agricultural sectors as supportive factors, even as the risk of a weak monsoon and potential El Niño conditions weigh on sentiment.
Jejurikar added that the tractor industry outlook remains dynamic and could be revised depending on how macroeconomic conditions evolve. “It is very hard to project the tractor industry for a 12-month period because it depends on many macroeconomic factors,” he said.
On the commercial vehicle side, the company expects high single-digit growth in light commercial vehicles, moderating from the recent double-digit run rate due to commodity inflation and potential fuel price increases. These factors could push up ownership costs and act as a demand dampener.
The company also reiterated its focus on maintaining strong volumes rather than prioritising margin expansion. “Customers today love buying our products… we are able to offer a lot at a very competitive price,” Jejurikar said, adding that sustaining demand and customer appeal remains central to its strategy.
Also Read | M&M Q4 Results: Revenue growth of 26% beats expectations, margins above 14%
The outlook commentary comes alongside a steady March quarter performance. Mahindra & Mahindra reported a net profit of ₹3,737.3 crore, up 53% year-on-year and ahead of estimates. Revenue rose 26.2% to ₹39,554 crore, driven by strong volume growth across segments.
EBITDA for the quarter increased 19% to ₹5,565 crore, while margins narrowed by 80 basis points to 14.1%, impacted by higher commodity costs, which were partly offset by price hikes.
The company’s performance underscores strong underlying demand in its core segments, even as it navigates cost pressures and external uncertainties heading into FY27.
Speaking to CNBC-TV18, Rajesh Jejurikar, Executive Director and CEO of the Auto & Farm Sector, said the company is building on a strong FY26 performance across segments. “We’re very happy with the way FY26 has gone… it’s been a year where we’ve literally fired on all cylinders,” he said, highlighting robust gains in SUVs, electric vehicles, and commercial segments.
Jejurikar noted that the SUV business remains a key growth driver. “For FY27, we are setting ourselves a strong target of mid- to high-teens growth in the SUV portfolio,” he said, adding that the company continues to gain market share and sees sustained customer demand.
However, the outlook for the tractor segment remains more measured, with the company factoring in weather-related risks. “The reason we are starting with mid-single-digit growth right now is that while there is a probability of rainfall being lower than expected… there are other positive enablers,” he said. He pointed to healthy reservoir levels and continued government spending in rural and agricultural sectors as supportive factors, even as the risk of a weak monsoon and potential El Niño conditions weigh on sentiment.
Jejurikar added that the tractor industry outlook remains dynamic and could be revised depending on how macroeconomic conditions evolve. “It is very hard to project the tractor industry for a 12-month period because it depends on many macroeconomic factors,” he said.
On the commercial vehicle side, the company expects high single-digit growth in light commercial vehicles, moderating from the recent double-digit run rate due to commodity inflation and potential fuel price increases. These factors could push up ownership costs and act as a demand dampener.
The company also reiterated its focus on maintaining strong volumes rather than prioritising margin expansion. “Customers today love buying our products… we are able to offer a lot at a very competitive price,” Jejurikar said, adding that sustaining demand and customer appeal remains central to its strategy.
Also Read | M&M Q4 Results: Revenue growth of 26% beats expectations, margins above 14%
The outlook commentary comes alongside a steady March quarter performance. Mahindra & Mahindra reported a net profit of ₹3,737.3 crore, up 53% year-on-year and ahead of estimates. Revenue rose 26.2% to ₹39,554 crore, driven by strong volume growth across segments.
EBITDA for the quarter increased 19% to ₹5,565 crore, while margins narrowed by 80 basis points to 14.1%, impacted by higher commodity costs, which were partly offset by price hikes.
The company’s performance underscores strong underlying demand in its core segments, even as it navigates cost pressures and external uncertainties heading into FY27.
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