Mahindra Q3 Updates: A Detailed Analysis
Mahindra & Mahindra Ltd. has reported a significant growth of over 20% in both production and sales in the third quarter of the current financial year. This surge can be attributed to the sustained demand even after the festive season, thanks to the reduction in GST rates under the GST 2.0 reforms.
Total production increased by 25% year-on-year to 68,992 units in the October-December quarter, according to provisional business updates disclosed to stock exchanges. Furthermore, sales jumped 27% to 85,501 units, while exports declined 9% to 2,849 units.
Impact of GST 2.0 on Mahindra Models
The government’s implementation of revised rates under the GST 2.0 reforms significantly reduced tax on cars, leading to notable changes across several Mahindra models. The company announced that it would pass on the full GST benefits to customers across its entire ICE SUV portfolio.
For instance, the total indirect tax burden on the Bolero/Neo dropped from 31% GST plus cess to a new uniform rate of 18%. The XUV3XO saw similar revisions, with the petrol variant moving from 29% to 18%, and the diesel variant falling from 31% to 18%.
The Thar lineup reflected mixed adjustments, with the Thar 2WD (diesel) shifting from 31% to 18%, whereas the Thar 4WD (diesel) saw a reduction from 48% to 40%.
Other models, including the Scorpio Classic, Scorpio‑N, Thar Roxx, and the XUV700, which previously had a 48% GST plus cess, transitioned to a lower consolidated rate of 40% under the updated GST framework.
Brokerage Firm Expectations and Industry Outlook
Brokerage firm Motilal Oswal expects aggregate auto demand across its coverage universe to grow 17% YoY in the third quarter, with healthy performance across all segments.
According to the Federation of Automobile Dealers Associations, India’s auto retail industry enters 2026 on firm footing, backed by rural demand, affordability gains from GST 2.0, and steady consumer sentiment.
Mahindra Stock Performance and Upcoming Earnings
Shares of Mahindra & Mahindra settled 1.3% lower at Rs 3,677 on the BSE, ahead of the announcement, compared to a 0.7% decline in the benchmark Sensex. The stock is up 18% on a 12-month basis.
Mahindra, a leading SUV manufacturer, will announce its third quarter earnings on Feb. 11. Investors and analysts will be closely watching the company’s performance, given the strong production and sales numbers.
Investment Strategies for Indian Investors
For Indian investors looking to capitalize on the growth in the auto sector, it’s essential to consider the impact of GST 2.0 on various companies and their models. Additionally, keeping an eye on the overall market sentiment, Nifty trends, and Sensex news can help inform investment decisions.
As the Indian economy continues to grow, the auto sector is expected to play a significant role. With the sustained momentum from GST 2.0, investors can look forward to potential opportunities in the sector.