M&M raises FY26 tractor sales growth guidance to low double digits
This story was originally published at 16:28 IST on 4 November 2025
Register to read our real-time news.Informist, Tuesday, Nov. 4, 2025
Please click here to read all liners published on this story
--M&M: On track for mid-to-high teens growth in utility vehicle sales FY26
--M&M: Industry consensus on new emission norms in couple of weeks
--M&M: Trying to control discount levels, have to deliver on margin front
--M&M: Will see reasonable performance from auto, tractor segments in Nov
--M&M: Post-festival demand for vehicles robust
--M&M: Raised tractor sector FY26 growth outlook on good monsoon, GST cut
--M&M: Didn't offer too high discounts in Q2
--M&M: Expect tractor industry to grow in low-double digits in FY26
--M&M: Customers are now upgrading to higher variants of cars
--CONTEXT: Comments by M&M mgmt in post-earnings press conference
--Q2 SUV sales impacted by logistical constraints
HYDERABAD/MUMBAI – Buoyed by a good monsoon, healthy reservoir levels, and a cut in the goods and services tax rates, Mahindra & Mahindra Ltd. has revised its tractor segment sales growth guidance for 2025-26 (Apr-Mar) to low double digits from the mid-single digits projected earlier. At the company's September-quarter earnings press conference, senior management expressed confidence about a reasonable performance in its automobile business in November.
"We're increasing that (tractor sales guidance) to low double digits because the year has been much better. The rainfall has been good. Reservoir levels are good and we're also factoring in the benefit of the lower GST," M&M management said.
The company said issues such as logistics and the GST rate cut-led transition disruptions had some impact on overall growth in the September quarter.
For the September quarter, the company's net profit rose almost 18% on year to INR 45.21 billion, beating the Street's estimate of INR 40.20 billion. Its revenue grew 21% year on year to INR 350.80 billion, also above analysts' estimate of INR 339.69 billion. Sequentially, the bottom line increased 31% and the top line rose almost 3%.
For the quarter under review, M&M reported a 50-basis-point improvement in market share in the tractor segment. In volume terms, the company's sales rose 32% to 122,936 units in the September quarter.
M&M management said sales in the sports utility vehicle segment were impacted by logistics and inventory-related issues during the September quarter. "... physical stocks (inventory of vehicles) have actually come down a lot because actual dispatches for most of our products started after 22nd September (post GST rate cut) and there's been a backlog of trailer availability. So it is taking time (to dispatch)," the management said.
The company management said customers are upgrading to higher versions, resulting in a demand skew from what it had anticipated. This shift is also leading to some waiting time in some segments, the company said.
"... post-festive demand continues to be robust. It will never be at the level of the festival period, but it is not falling off as significantly as one normally sees," M&M said. The reason for the continued demand this time is the cash flows, the company said.
"... a lot of the cash flow from harvesting will come in now. So, you know, cash in the hands of farmers or rural customers is coming in now as we're getting into November," M&M said.
Given the GST rate cut and festive demand, M&M is sticking to its earlier guidance of mid- to high-teens growth in its SUV segment sales and is on track to achieve it for FY26.
M&M management said the company is also not providing unusual or heavy discounts to customers across segments, as it has already provided GST benefits ahead of the announcement. The company said it is also on track to achieve double-digit growth in light commercial vehicle sales in FY26.
"I think at an overall level, we don't think we discounted too much. We did prepone the GST benefit to the customers, but on a steady state through the quarter, we were not very high on discounts," the company said. M&M management said the company is trying to control margins to deliver better margins.
M&M said it expects the industry body, the Society of Indian Automobile Manufacturers, to reach consensus on new emission norms in the next couple of weeks.
On the shortage of rare earth elements, M&M management said it does not expect any supply issues for now, as it has enough supply arrangements for FY26. The company said it is taking multiple actions to meet the requirements and is not anticipating any issues for now.
On Tuesday, M&M shares ended at INR 3,581.20 on the National Stock Exchange, up nearly 1% from its previous close. End
Reported by Narayana Krishna and Anand Chandrashekar
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
