Mahindra & Mahindra Shares Rise as Strong SUV Demand Offsets Tractor Slowdown Concerns

Shares of India’s Mahindra & Mahindra rose as much as 5% on Friday, supported by strong demand for its sport utility vehicles (SUVs) and growing investor confidence in its electric vehicle (EV) business. The stock was trading 3.4% higher at ₹3,235 at 11:54 a.m. IST, outperforming the benchmark Nifty 50 and the Nifty Auto index. The gains came despite concerns over a slowdown in the tractor business, which has been affected by weaker rural purchasing power following below-normal monsoon rainfall.

Mahindra & Mahindra recently lowered its forecast for tractor industry growth in the current financial year to flat, compared with its earlier estimate of 5%. However, analysts believe the weakness in the tractor segment could be temporary, while strong SUV sales and expansion in electric mobility offer better growth prospects. The company also reported a 12.9% increase in quarterly profit, supported by healthy SUV demand. Analysts noted that strong vehicle sales, potential reductions in commodity costs and improved pricing could help support future earnings.

Market experts also highlighted the company’s diversified business operations as a factor helping it withstand weakness in the agricultural vehicle segment. However, rising input costs, investments in electric vehicles and slower tractor demand could put pressure on margins in the near term. Planned SUV launches and increased EV production capacity are expected to support longer-term growth, with some analysts anticipating improved margins from the 2028 financial year.

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