M&M shares slip 3%; here's what Choice says post Q1 numbers

Shares of Mahindra & Mahindra (M&M) Ltd extended losses for a second straight session on Friday, falling nearly 3 per cent in early trade. The decline came after the auto major reported on Wednesday, after market hours, a 24 per cent year-on-year (YoY) drop in net profit at Rs 4,083 crore for the June quarter of FY26, compared with Rs 5,382 crore in the same period last year.

The stock hit a day’s low of Rs 3,117.25, down 2.6 per cent from its previous close of Rs 3,203.55 on the BSE. At 12:05 pm, the stock had pared some losses, trading 1.28 per cent lower at Rs 3,162.70.

Meanwhile, M&M reported strong auto sales numbers for July 2025, with overall sales (including exports) rising 26 per cent year-on-year to 83,691 units.

In the Utility Vehicles (UV) segment, domestic sales stood at 49,871 units, marking a 20 per cent growth, while total UV sales, including exports, reached 50,835 units. The company also sold 21,571 commercial vehicles in the domestic market during the month.

Brokerage Choice Institutional Equities maintained its ‘BUY’ rating on the stock with a target price of Rs 4,400, implying a potential upside of over 38 per cent.

“M&M delivered strong revenue growth across its core auto and farm segments, with consolidated topline rising 25.6 per cent YoY. A key contributor to this performance was the 22.4 per cent growth in SUV volumes, outpacing industry growth of 3.8 per cent YoY and driving a 570bps revenue market share gain to 27.3 per cent,” Choice said.

The brokerage said, “Recently launched vehicles and a disciplined focus on premiumization has translated into higher ASPs, supporting better operating leverage and a margin-accretive topline.”

“The company is number one in SUV revenue market share, achieving 27.3 per cent in Q1FY26, which is an increase of 570 bps YoY,” it said.