M&M shares decline after November auto sales below estimates, tractor sales increase 32%

Shares of Mahindra and Mahindra Ltd. (M&M) declined on Monday, December 1, after the company's monthly auto sales were below Street estimates.

The M&M auto segment reported total sales of 92,670 units, which were below the CNBC-TV18 poll of 1.02 lakh units. The total auto sales increased 19% from the previous year's 78,202 units.

Meanwhile, M&M's total tractor sales increased to 44,048 units from Street estimates of 35,780 units. It was also 32% more than the 33,378 units reported in November last year.

M&M's domestic passenger vehicles were up 22% at 56,336 units compared to 46,222 units last year.

Its total exports increased 5% to 2,923 units from 2,776 units in November last year.

The company's total commercial vehicles (CV) sales were up 17% at 24,843 units.

Last month, M&M reported its second quarter earnings, which beat analyst expectations on most parameters.

M&M's consolidated revenue for the September quarter increased 21.3% to ₹33,422 crore, which was lower than Street estimates of ₹34,294 crore.

Its net profit of ₹4521 crore was higher than the CNBC-TV18 poll of ₹4,044 crore. This was also 18% up from the year-ago period.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 23% to ₹4,862 crore, a little above Street estimates of ₹4,759 crore.

M&M's EBITDA margin expanded to 14.5% from 14.3% in the year-ago period and was also higher than Street expectations of 13.9%.

Last month, the Mahindra Group management also highlighted their growth plan in the coming years.

Rajesh Jejurikar, Executive Director & CEO (Auto & Farm), said the next decade will be defined by “growth in multiples,” not incremental expansion — an 8x top-line growth target for SUVs and LCVs by 2030, 3x growth aspiration driven by tractors, farm machinery and global expansion.

On the auto side, CEO Nalinikanth Gollagunta said FY26 would be a "must-do" year, targeting mid- to high-teens growth in SUVs and high single-digit growth in LCVs, before accelerating toward the 8x decadal ambition.

M&M shares were trading 0.6% lower at 3,735.8 apiece around 10.55 am on Monday. The stock has gained 23.4% in the last six months.

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