M&M share price dips after Q3 results 2026. Opportunity to buy?

Mahindra & Mahindra (M&M) shares dipped nearly 1% to ₹3,637.60 apiece on Thursday, despite the company posting a 33% year-on-year (YoY) rise in its consolidated net profit for the third quarter of FY26.

The company had posted its results during market hours on Wednesday, after which the stock had ended flat with a negative bias at ₹3,674.65.

M&M shares have gained 2.41% over the past five sessions but are flat for the month.

M&M Q3 results 2026

Automobile major Mahindra & Mahindra reported a 32.62% year-on-year increase in standalone profit after tax to ₹3,931.3 crore for the December quarter of FY26. The XUV700 manufacturer had posted a net profit of ₹2,964.31 crore in the same quarter last year.

Revenue from operations rose 26.12% to ₹38,516.81 crore during the October–December period of FY26, compared with ₹30,538.23 crore in the corresponding quarter a year earlier.

EBITDA grew 20.72% to ₹5,293 crore in the quarter under review, up from ₹4,384 crore in Q3 FY25. However, the EBITDA margin moderated to 13.74% from 14.36% in the year-ago period.

“We are delighted to report solid operating performance across the group in Q3’F26, reflecting our strong focus on growth coupled with disciplined execution. Auto & Farm has maintained its leadership position on the back of steady customer demand, strong product acceptance and unwavering focus on operational excellence," said Anish Shah, Group CEO & Managing Director.

On a consolidated basis, the Mahindra Group reported a 47% YoY jump in net profit to ₹4,674.7 crore, compared with ₹3,180.6 crore in Q3FY25. The profit growth factors in the impact of expenses related to the labour code.

Consolidated revenue rose 24.4% from a year earlier to ₹51,580 crore, marking the first time Mahindra & Mahindra has crossed the ₹50,000 crore revenue milestone in a single quarter.

M&M share price: Should you buy or sell?

Brokerages remained bullish on M&M stock, suggesting a target price of ₹4000 and above.

JM Financial maintained its ‘Add’ rating on the M&M stock, with a target price of ₹4,000 per share.

“With the new launches, we expect ASP to grow, going ahead. Capacity debottlenecking across plants is underway, targeting incremental volumes of 3-5k units per month by Jul-Aug’26, along with ~3k EV capacity linked to the XEV 9S. On margins, commodity headwinds led by PGM and iron-related supply issues persist, mitigated by a 1% price hike taken in Jan’26. While near-term memory chip supply is secured, prolonged shortages and achieving CAFÉ norms target remain key monitorables. We maintain ADD and roll forward to FY28E EPS, with a target price of INR 4,000 (SOTP valuation; 24x core business),” the brokerage firm said.

Meanwhile, brokerage firm Choice Institutional Equities has also reiterated a ‘buy’ rating, with a target price of ₹4,450.

“We marginally revise our FY26/27/FY28E EPS estimate and maintain our target price at INR 4,450, valuing the company at 25x (unchanged) on FY28E EPS, along with subsidiary valuation. We reiterate our ‘BUY’ rating on the stock, supported by M&M’s strategic focus on premium product portfolio expansion and anticipated recovery in rural demand,” the firm added.

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