While analysts remain constructive on demand, they expect margins to come under pressure despite healthy volume growth.
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Mahindra & Mahindra heads into its June-quarter earnings after delivering record SUV and tractor sales, but the Street expects the strong volume momentum to translate into only modest profit growth. Brokerages forecast standalone revenue to rise 19-24 per cent year-on-year, while profit after tax is seen increasing by just 0.2-2.3 per cent as higher raw-material costs, commodity inflation and investments in electric vehicles compress margins.The automaker will announce its Q1 FY27 results today post 1.30pm or 13.30 hrs. Forecasts from Motilal Oswal Financial Services, Kotak Institutional Equities and HDFC Securities peg standalone revenue between ₹40,606 crore and ₹42,253 crore, implying growth of 19-24 per cent year-on-year. Net profit is estimated at ₹3,456-3,529 crore, translating into growth of just 0.2-2.3 per cent over the year-ago quarter.Margins in focusWhile analysts remain constructive on demand, they expect margins to come under pressure despite healthy volume growth.Motilal Oswal has the most conservative revenue forecast, estimating a 19.1 per cent increase to ₹40,606 crore, driven by an 18 per cent rise in tractor volumes and an 11 per cent increase in passenger-vehicle volumes, including pick-ups.
