Mahindra & Mahindra Achieves Record 45.2% Tractor Market Share in Q1 FY26, Posts 24% Profit Surge

Key Highlights

• Record 45.2% tractor market share in Q1 FY26, highest ever for M&M.

• Tractor sales up 10% YoY to 1,32,964 units.

• Q1 FY26 net profit surged 24% to Rs 4,083 crore.

• Vehicle sales increased 17% YoY to 2,47,249 units.

• June 2025 utility vehicle sales rose 18% YoY to 47,306 units.

Mahindra & Mahindra Ltd (M&M) has delivered a strong performance in the first quarter of FY26, achieving its highest-ever tractor market share and significant growth in both profit and sales. The company posted a 24% year-on-year (YoY) rise in net profit and saw robust demand across its key automotive and farm sectors.

Record Tractor Market Share with 10% Growth

In Q1 FY26, Mahindra & Mahindra achieved a historic 45.2% market share in the Indian tractor segment, the highest for any quarter in the company’s history. Tractor sales rose by 10% YoY, with the company selling 1,32,964 units between April and June 2025, compared to 1,20,492 units in the same period last year.

This growth was driven by strong rural demand and a steady performance across key agricultural markets. The company’s core tractor business, which excludes farm machinery and power products, delivered healthy profitability with a PBIT (Profit Before Interest and Tax) margin of 20.7%, an improvement of 100 basis points over the previous year.

Robust Financial Performance in Q1 FY26

M&M reported a consolidated net profit of Rs 4,083 crore in Q1 FY26, marking a 24% increase from Rs 3,299 crore recorded in Q1 FY25. Revenue also surged 23% year-on-year during this quarter. On a standalone basis, the company’s net profit jumped 32% YoY to Rs 3,450 crore, surpassing market expectations.

Total vehicle sales in the April-June quarter stood at 2,47,249 units, reflecting a 17% increase from 2,11,550 units sold in Q1 FY25. Tractor sales contributed significantly, with a 10% year-on-year rise.

Strong Auto Segment Performance

M&M's auto segment also witnessed impressive growth. In June 2025 alone, domestic passenger vehicle sales increased by 18% YoY. The company sold 47,306 utility vehicles in June 2025, up from 40,022 units in June 2024.

The Auto Standalone PBIT margin improved by 50 basis points to 10%, showing better profitability driven by operating efficiencies.

Leadership Commentary and Growth Outlook

Anish Shah, Group CEO and Managing Director of M&M, said, “Q1 FY26 has been an excellent quarter with broad-based growth across all our businesses. Rural sentiment remains strong, especially in the tractor market, and we expect this positive trend to continue, supported by good fundamentals, expected rate cuts, and better liquidity in the market.”

Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector, added that M&M gained 50 basis points YoY in tractor market share, reaching 45.2%, and saw a 570 basis points gain in SUV revenue share. He also highlighted plans to expand the farm business globally, with markets like Australia and South Africa offering strong potential. He expressed optimism about the upcoming festive season, expecting strong sales.

Growth Across Other Business Segments

M&M’s other businesses also showed positive momentum. Mahindra Logistics reported 14% revenue growth, while Mahindra Holidays & Resorts India Ltd (MHRIL) expanded its room inventory by 10%. Tech Mahindra (TechM) continued to secure new deals and is on track to meet its FY27 margin targets.

Group CFO Amarjyoti Barua commented, “We are pleased with the group’s performance despite macro challenges like geopolitical disruptions. This reflects the group’s resilience. Our focus on capital discipline and operational metrics remains strong as we continue to deliver shareholder value.”

Also Read: Strong Monsoon, Steady Demand Set Tractor Sales on Growth Path in FY26

CMV360 Says

Mahindra & Mahindra’s strong Q1 FY26 performance demonstrates its leadership in the tractor segment and solid execution across its businesses. With continued growth in rural demand, global expansion plans, and strong auto and farm sector results, the company is well-positioned for sustained growth in the upcoming quarters of FY26.