ICRA reaffirms 'AAA' rating on M&M's NCDs worth INR 5 bln, outlook stable
This story was originally published at 16:22 IST on 28 September 2026
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MUMBAI – Mahindra & Mahindra Ltd. Ltd. Monday said that ICRA Ltd. has reaffirmed its 'AAA' rating and stable outlook on the automaker's non-convertible debenture programme worth INR 5 billion. It also reaffirmed the 'AAA' rating on INR 62.5 million of long-term non-fund-based facilities and 'A1+' rating on INR 6.44 billion of short-term non-fund-based facilities, according to an exchange filing.
The ratings reflect M&M's strong financial profile, supported by healthy cash flows, profitability in its core automotive and tractor businesses and strong liquidity, the rating agency said in a release. ICRA also noted M&M's leading position in the domestic tractor market, with a 44.3% market share in four months for the financial year 2026-27 (Apr-Mar). The agency expects the company's diversified operations and conservative financial profile to support its credit metrics despite the cyclical nature of the auto and tractor businesses.
ICRA said the ratings could face negative pressure if debt-funded capital expenditure, investments, or any large inorganic acquisitions weaken M&M's debt protection metrics. Also, a sustained decline in its market position in the automotive or farm equipment businesses, leading to weaker profitability and cash flows, could weigh on the ratings.
For the June quarter, M&M reported a net profit of INR 36.85 billion on revenues of INR 419.59 billion. Shares of the company ended at INR 2,995 apiece, 1.3% lower than its previous close on the National Stock Exchange. End
Reported by Diksha Singh
Edited by Avishek Dutta
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