Mahindra & Mahindra Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Mahindra & Mahindra Ltd trades at ₹3,161, in a downtrend and 17 weeks into that stage. That is −2.2% against its own 200-day average. It sits at 26% of a 52-week range of ₹2,931 to ₹3,802. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a downtrend — week 17 of stage 4, confirmed. At ₹3,161 it trades −2.2% versus its 200-day average and sits at 26% of its 52-week range (₹2,931–₹3,802).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +418% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 41st percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Mahindra & Mahindra Ltd trades at 22.7× P/E, mid-range by its own standards (41st percentile). Its long-run median P/E is 24.8×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 22.7× is mid-range by its own standards (41st percentile), against a long-run median of 24.8× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +32.2% against a −2.6% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +32.8%/yr price move, ~+50.7%/yr came from earnings growth and ~−17.9 pp from the multiple (compressing); over 10y, of the +15.9%/yr price move, ~+18.7%/yr came from earnings growth and ~−2.8 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Mahindra & Mahindra Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 17.9% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

68.4/100 — rank 1 of 4 in Auto - 4 Wheelers · 91% evidence confidence

Mahindra & Mahindra Ltd scores 68.4 out of 100 against the 4 companies it is compared with in Auto - 4 Wheelers, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 27.5 + 13.1 + 15.8 + 12 = 68.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Mahindra & Mahindra Ltd reported ₹54,982 Cr of revenue in the Mar 26 quarter, +29.1% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 10.1% a year. The last full year, FY26, came in at ₹1,98,639 Cr. The last four reported quarters add to ₹1,98,717 Cr.

Mahindra & Mahindra Ltd reported ₹54,982 Cr of revenue in the Mar 26 quarter, +29.1% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 10.1% a year. The last full year, FY26, came in at ₹1,98,639 Cr. The last four reported quarters add to ₹1,98,717 Cr.

FY26 revenue came in at ₹1,98,639 Cr (+24.8% on the year), capping 10 years at 10.1% compound. The latest quarter (Mar 26) printed ₹54,982 Cr, +29.1% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +24.6% growth against the decade's 10.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +24.8% over the last 4 quarters against +19.5%/yr over the last 8 — accelerating; TTM profit +32.3% vs +23.2%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 18.0% this quarter (−1.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Mahindra & Mahindra Ltd's operating margin is 18.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 12.0% to 19.0%. The current quarter sits inside that band.

Mahindra & Mahindra Ltd's operating margin is 18.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 12.0% to 19.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 18.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 12.0%–19.0%, and FY26's 19.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −0.2 pp year on year while gross margin went −1.9 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins slipped — did that reach the bottom line? Next: profit +48.5% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Mahindra & Mahindra Ltd earned ₹5,260 Cr of net profit in the Mar 26 quarter, +48.5% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹18,622 Cr. The 10-year compound rate is 18.0%. That is 9.6% of the quarter's revenue. The same quarter a year earlier earned ₹3,542 Cr.

Mahindra & Mahindra Ltd earned ₹5,260 Cr of net profit in the Mar 26 quarter, +48.5% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹18,622 Cr. The 10-year compound rate is 18.0%. That is 9.6% of the quarter's revenue. The same quarter a year earlier earned ₹3,542 Cr.

Mar 26 profit was ₹5,260 Cr, +48.5% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹18,622 Cr (+32.3%), and the 10-year compound rate is 18.0%.

Why profit moved: revenue contributed +29.1% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +32.1% vs revenue +24.6%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 20% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 20% of Mahindra & Mahindra Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹11,657 Cr of operating cash against ₹18,622 Cr of profit. After ₹10,587 Cr of capital spending, ₹1,070 Cr was left as free cash.

FY26: operating cash of ₹11,657 Cr against reported profit of ₹18,622 Cr, leaving free cash of ₹1,070 Cr after ₹10,587 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 20% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 20%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 1.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹33,210 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Mahindra & Mahindra Ltd's cash conversion cycle runs −30 days in FY26, down from −26 days in FY21. Capital spending ran ₹33,210 Cr over the last 3 years. At FY26 sales of ₹1,98,639 Cr each day of that cycle holds about ₹544 Cr, so roughly ₹−16,326 Cr sits inside the business at any moment.

FY26: debtors at 17 days, inventory at 65 days — roughly 2.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −30 days, tighter than FY21's −26.

The full loop: cash goes out to suppliers and production on day 0; stock waits 65 days to sell; customers pay about 17 days after that; and suppliers themselves are paid at 112 days — netting out to the −30-day cycle.

In money terms: at FY26 sales of ₹1,98,639 Cr, each day of the cycle holds about ₹544 Cr — so the −30-day loop keeps roughly ₹−16,326 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹33,210 Cr over the last 3 fiscal years against ₹18,120 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹7,740 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 15% and the ROIC − WACC spread is +1.1 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Mahindra & Mahindra Ltd earns a ROCE of 15% in FY26. That is up from a trough of 7% in FY20. Return on invested capital clears the cost of that capital by +1.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.4% net margin on 0.63× asset turns.

FY26 ROCE is 15%, recovered from a FY20 trough of 7% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.4% net margin × 0.63× asset turns × 3.39× balance-sheet leverage ≈ 20.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 13.1% − 12.0% = a +1.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 1.47.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Mahindra & Mahindra Ltd carries total debt of ₹1,37,169 Cr against shareholder equity of ₹1,09,491 Cr as of Mar 26, a debt-to-equity of 1.25. On the annual view that ratio went from 1.37 in FY22 to 1.25 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹1,37,169 Cr against shareholder equity of ₹1,09,491 Cr — a debt-to-equity of 1.25. On the annual view, debt-to-equity went from 1.37 (FY22) to 1.25 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 7.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 7.0 points of Mahindra & Mahindra Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 34.9% of the company. Domestic institutions moved +6.4 points over the same window, to 32.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −7.0 points over 8 quarters to 34.9%; Domestic institutions: +6.4 points over 8 quarters to 32.6%; Promoters: −0.1 points over 8 quarters to 18.4%. Note the structure: promoters hold under 20% — this is a widely-held company where institutions, not a family, set the direction.

Why the register moved: rotation — foreign institutions −7.0 points against domestic institutions +6.4 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Mahindra & Mahindra Ltd: the Z-score reads 2.57. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits in the grey band between the two. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 2.57 sits in the grey band — neither clearly safe nor clearly distressed.

The safety line in one sentence: the Z-score reads 2.57.

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