Indian earnings call, November 2026: Mahindra & Mahindra cuts tractor outlook to flattish

Mahindra & Mahindra lowered its tractor view but kept its SUV outlook

The chief executive spoke on the call for the second quarter of fiscal year 2027.

• The chief executive said Mahindra reduced its fiscal year 2027 tractor industry outlook from 5% growth to flattish.
• The chief executive said Mahindra maintains its sport utility vehicle (SUV) growth outlook at mid- to high-teens.
• The chief executive said core tractors were expected to face pressure in the third quarter of fiscal year 2027, possibly less than previously expected. The chief executive said they were expected to improve in the fourth quarter and return to normalcy in fiscal year 2028.

Mahindra & Mahindra kept its group earnings and return targets

The chief executive said the company maintained its commitment to 15–20% growth in earnings per share (EPS), which is profit divided by the number of shares. The chief executive said it also kept an 18% target for return on equity (ROE), which is profit measured against shareholders' money in the business. The chief executive said this held even in tough environments. The chief executive also said Tech Mahindra was on track with its outlined plan, with profits up 33% in the second quarter of fiscal year 2027.

Mahindra & Mahindra said its businesses have moved toward their targets for this decade

• Auto: the chief executive said it had reached 4x from its fiscal year 2020 baseline and retained its 8x target.
• Farm: the chief executive said it has achieved 2x growth from its 21,000 crore starting point toward a 3x target. A crore is an Indian counting unit.
• Mahindra Finance: the chief executive said assets under management (AUM), the loans and assets the business manages, grew from 65,000 crore to above 1,30,000 crore. The chief executive said it is ahead of expectations on its 4–5x growth ambition.
• Last-mile mobility: the chief executive said it has achieved 7–7.5x growth toward a 25x target.
• Mahindra Lifespaces: the chief executive said pre-sales grew 5x toward a 14x target.

Management gave limited answers on production capacity

Analysts asked whether planned capacity for one product was part of the 82,000 monthly volume figure. Management declined to answer. Analysts also asked about planned utilization and near-term capacity increases to meet demand. Management gave partial answers.