Business

IIE DIGITAL DESK : Mahindra & Mahindra (M&M) shares rose over 3% in early trade after the company delivered a strong set of Q4 FY26 results, prompting multiple global and domestic brokerages to issue bullish calls on the stock. The rally came on the back of robust earnings performance and improved growth visibility across the company’s key automotive and tractor segments.

The automaker reported a 42% year-on-year jump in consolidated net profit, which stood at approximately ₹4,668 crore compared to ₹3,295 crore in the same quarter last year. Revenue from operations also saw strong growth, rising nearly 29% to around ₹54,892 crore. The company’s full-year performance remained equally strong, driven by sustained demand in SUVs and improving margins across core businesses.

Investor sentiment turned positive as several brokerage houses reiterated their optimistic outlook on M&M. Nomura maintained a “Buy” rating on the stock and highlighted strong visibility in the SUV growth cycle, supported by a healthy pipeline of internal combustion engine and electric vehicle launches. Goldman Sachs also retained a “Buy” recommendation, noting that earnings came in stronger than expected and that concerns around long-term SUV demand have reduced significantly.

Motilal Oswal similarly maintained a “Buy” stance and raised its target price, citing better-than-expected profitability and improving earnings trajectory. Across brokerages, target prices suggest meaningful upside potential, with some estimates indicating gains of nearly 25% to 40% from current levels depending on valuation assumptions.

Analysts pointed out that the company’s strong SUV momentum, improving EV strategy, and stable tractor business are key drivers supporting future growth. However, some caution remains around potential margin pressure due to input costs and cyclical risks in the tractor segment, especially depending on monsoon conditions.

M&M shares gained traction as investors responded positively to the earnings beat and upgraded brokerage outlooks. The stock has continued to attract institutional interest, reflecting confidence in the company’s medium-term growth strategy and its position in India’s evolving automobile market.

Market experts say that while short-term volatility may persist, the overall sentiment around M&M remains constructive, with strong fundamentals and a diversified product pipeline supporting the bullish outlook.