Kotak Institutional Equities has reaffirmed its Buy rating on Mahindra & Mahindra (M&M) with a target price of ₹3,500, stating that the company is “firing on all cylinders” with a strong FY26 outlook and broad-based momentum across its key business verticals.
According to Kotak, M&M’s Q4 performance was robust, with EBITDA exceeding expectations, supported by higher sales volumes and an improved gross margin profile. The brokerage believes that this performance is not just a one-off but indicative of the company’s operating strength across its automotive, farm equipment, and electric vehicle segments.
Importantly, Kotak sees continued outperformance in FY26, underpinned by strong brand pull in SUVs, market recovery in the tractor space, and early traction in the EV lineup. It added that M&M’s tractor segment is expected to maintain its uptrend, helped by favourable monsoon expectations, better rural liquidity, and a recovery in farm sentiment.
Kotak’s bullish stance also factors in cost rationalisation efforts, stable commodity prices, and a healthy product pipeline—all of which are expected to sustain the company’s growth trajectory. The brokerage concludes that M&M remains one of the most well-diversified and structurally sound plays in the Indian automotive sector today.
Disclaimer: The views expressed are those of the brokerage and not the publication. Investors should consult their financial advisor before taking investment decisions.
