M&M share price falls despite booking strong Q1 results: should you buy, sell or hold?

Shares of Mahindra & Mahindra (M&M) declined as much as 2 per cent on Thursday, even as the company reported a strong set of numbers for the first quarter of FY26. At last check, M&M was trading at Rs 3,209, reflecting broader market weakness despite upbeat fundamentals.

M&M posted a 32 per cent year-on-year rise in net profit to Rs 3,450 crore for the June 2025 quarter, driven by robust demand for its high-margin SUVs and tractors. Revenue from operations stood at Rs 34,143 crore, up 26 per cent from Rs 27,133 crore in Q1FY25.

Brokerages Maintain Bullish Stance on M&M Post Q1

Despite the dip in share price, brokerages remain positive on M&M.

Jefferies, which raised its target price to Rs 4,000, noted that the company delivered its 13th consecutive quarter of double-digit EBITDA growth, gained market share in SUVs, and rose to the #2 spot in the passenger vehicle segment.

Goldman Sachs also maintained its 'Buy' rating, revising its target to Rs 3,900.

Morgan Stanley, JP Morgan, CLSA, Citi, and Nomura echoed similar confidence, citing strong guidance and a healthy launch pipeline.

M&M reaffirmed its mid-to-high teen UV growth guidance for FY26 and is set to launch a new platform on August 15, followed by an Analyst Day in November. Tractor demand is also showing signs of improvement.

With three new SUVs planned for launch in calendar year 2026 and robust rural demand, analysts see M&M well-positioned to sustain growth momentum, despite near-term market volatility.