M&M steps on the gas with massive SUV & EV boost

Listen to this article in summarized format Listen Loading... × × Subscribe to Unlock AI Briefing and Premium Content New Year Offer 24 Hours Left Subscribe Now Already a member? Sign In What's Included Exclusive Stories Daily ePaper Access Smart Market Tools Curated Investment Ideas Ad-lite Experience Subscription Reuters Mahindra & Mahindra delivered a double-digit revenue and profit growth, driven by robust SUV demand, growing traction in electric vehicles and improving contributions from its financial services, technology and logistics businesses. M&M is banking on capacity expansion, multiple vehicle launches, accelerating EV adoption and the aerospace division to sustain growth momentum. Shares of M&M gained 10.3% in three trading sessions after declaring quarterly results. While weak monsoons, lower reservoir levels and commodity inflation have led M&M to temper its near-term outlook for the tractor industry, the company expects continued momentum in SUVs, EVs and its diversified portfolio of businesses to underpin earnings growth. The biggest growth trigger remains the SUV division, where demand continues to significantly exceed supply across key models such as Scorpio, Thar, XUV 7XO and the electric vehicle portfolio. M&M expects the segment to deliver mid-to-high-teen growth in FY27, supported by a strong order book, premiumisation and an expanding product portfolio. Also Read: M&M Q2 net profit up 25% driven by strong automotive sales Electric vehicles are emerging as the next leg of growth. EV penetration in M&M's SUV portfolio has already surpassed the industry average, driven by strong response to the XEV range and the recent BE 6 Sporteq launch. M&M expects profitability in the EV business to steadily improve through localisation, scale benefits and operating leverage, while analyst see EVs becoming a meaningful contributor to earnings over the next few years. M&M plans to increase SUV and EV production capacity from around 68,000 units per month currently to 82,000 units by FY27-end, 92,000 units by FY28-end and 132,000 units by FY31. The company's future pipeline also remains robust, with five launches scheduled before June 2027, including a new SUV on the NU_IQ platform, a new EV on INGLO platform, a Lifestyler vehicle, a major product refresh and a new light commercial vehicle. Live Events On the other hand, the company revised its FY27 tractor industry outlook to flattish growth from its earlier expectation of mid-single-digit growth due to weak monsoons, low reservoir levels and drought-like conditions in key states. Also Read: Mahindra rides the SUV boom, but margins feel the cost squeeze Beyond automobiles, businesses such as Mahindra Finance, Tech Mahindra, Last Mile Mobility, logistics and aerospace act as future growth drivers. The aerospace business is gaining scale with increasing global order wins and an ambition to achieve annual order inflows of around $1 billion by FY30, while financial services continue to benefit from improving asset quality. Although near-term profitability may face the pressure of commodity inflation and a subdued rural environment, brokerages such as ICICI Securities and Prabhudas Lilladher have retained their Buy ratings with target prices implying a 16-18% upside to Sunday's closing price of ₹3,264.7. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on Mahindra & Mahindra growth M&M SUV demand M&M stock performance electric vehicles M&M M&M financial services M&M expansion plans EV penetration in SUVs tractor industry outlook aerospace business M&M M&M Q2 results (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) Subscribe to The Economic Times Prime and read the ET ePaper online. ... more less (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on Mahindra & Mahindra growth M&M SUV demand M&M stock performance electric vehicles M&M M&M financial services M&M expansion plans EV penetration in SUVs tractor industry outlook aerospace business M&M M&M Q2 results (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) Subscribe to The Economic Times Prime and read the ET ePaper online. ... more less