Mahindra & Mahindra Sets Bold Targets for FY26 Amid Strong FY25 Performanc
By Ankur Chandra | Published at: Jun 26, 2025 12:29 PM IST
Mumbai, June 26: Mahindra & Mahindra Ltd (NSE: M&M) has shared its strategic objectives for Fiscal Year 2026 (FY26) across its Automotive and Farm equipment sectors. This follows a period of notable growth in market share and profitability during FY25. The company’s plans, discussed during an analyst meeting on May 5, 2025, focus on expansion through innovation and maintaining its market position.
Mahindra & Mahindra sets target of manufacturing 57,000 SUV units per month in FY26
Auto Segment: Capacity Expansion, Global Push, and Electrification
Mahindra intends to expand its SUV and electric vehicle (EV) manufacturing capabilities in FY26, alongside the introduction of new products.
| Key Objective | FY26 Strategy |
|---|---|
| SUV Leadership | Expand manufacturing to 57,000/month (from 54,000 in FY25) |
| EV Rollout | Add capacity for 18,000 BEVs/month; Chakan platform in focus |
| New Platform | Announce the futuristic platform on 15th August 2025 |
| Export Growth | Continue BEV-led expansion in South Africa, Australia |
| Product Pipeline (CY26) | 3 ICE SUVs, 2 BEVs, 2 LCVs expected |
The company confirmed the launch of six new products in FY25 and intends to maintain that momentum into FY26 and beyond, targeting 7 BEVs and 9 ICE SUVs by 2030.
“We are investing in greenfield capacity and accelerating platform innovation to meet global demand,” the management noted during the analyst briefing.
Farm Segment: Technology Leadership and Market Consolidation
In the agricultural sector, Mahindra aims for 1.6x growth in its international operations by FY26. The company acknowledged some challenges in markets such as Brazil, Turkey, and Japan. The Farm Equipment Sector will continue to utilise its OJA platform to expand into new regions, including the U.S. and Thailand. The company also plans to implement cost rationalisation measures in its global subsidiaries, such as MAM (Japan) and Sampo (Europe).
| Metric | FY25 Outcome | FY26 Target |
|---|---|---|
| Market Share (Domestic) | 43.3% (up 170 bps YoY) | Sustain leadership |
| ROCE | 53.7% | >18% ROCE |
| Farm Machinery Growth | 18% YoY | Continue high-teens CAGR |
| Global Expansion | 1.1x growth achieved vs 1.6x target | Recover via tactical consolidation |
FY26 Commitments Overview
Mahindra’s updated commitments, building on previous targets from FY21 and FY23, include:
- Auto: A 2.5x increase in International Operations revenue by FY26.
- Farm: Maintaining a ROCE of over 18% and expanding its AI-driven precision farming to cover more than 3 lakh acres.
- EV Strategy: Maintaining its leadership position, supported by strong initial bookings (30,179 on Day 1 for e-SUVs) and targeting 5-star BNCAP (Bharat New Car Assessment Program) ratings for new BEV models.
- Product Excellence: Focusing on delivering high customer satisfaction and strong brand affinity across its product segments.
Capacity & Capital Allocation
The company is undertaking significant capacity expansion, with plans for a new greenfield plant beyond FY28. For FY26, the monthly capacity is projected to increase to 85,000 vehicles, which includes 18,000 BEVs. This expansion is supported by:
- ₹13,313 crore in net cash generation during FY25.
- ₹2,697 crore allocated to its EV businesses (Mahindra Electric Automobiles Ltd. (MEAL) + Last Mile Mobility).
- Strong free cash flow, supported by asset-light strategies and ₹2,050 crore in private equity funding for its subsidiaries.
Share Price Effect
As of 10:20 AM, the shares of Mahindra & Mahindra were down 0.39%, or ₹12.50 and were trading at ₹3,203.00. It remains to be seen how the shares perform throughout today’s trading session and at what price they close.
What’s Next?
Mahindra & Mahindra will focus on executing its ambitious FY26 roadmap, which includes capacity ramp-ups, global EV rollouts, and expansion in the farm segment. Key watchpoints include the August 15 EV platform reveal, overseas recovery in farm markets, and progress on precision farming. Investors will monitor delivery timelines, global traction, and capital deployment efficiency.
About Mahindra & Mahindra Ltd
Mahindra & Mahindra Ltd (NSE: M&M), listed on the NSE and BSE, is a flagship company of the Mahindra Group, known for its leadership in SUVs, tractors, electric vehicles, and farm machinery. It is India’s largest tractor manufacturer and among the top SUV manufacturers. The company is also expanding its global footprint through technology, exports, and innovation-led platforms.
REF: https://www.mahindra.com/sites/default/files/2025-05/M&M Q4F25 Analyst Meet – Presentation Deck – 5th May 2025.pdf
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