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Mahindra & Mahindra (M&M) recently hosted its investor meet to outline growth prospects and future strategy. The management highlighted strong positioning across its two core businesses - Automotive and Farm Equipment. In Auto, M&M targets 8x revenue growth by FY30 (20% CAGR over FY25-30P), driven by advanced platforms (INGLO, NU_IQ), global expansion via the Pik-Up platform, and an SUV portfolio up cycle including EV launches (XEV-9s/ new model in Nov’25 and electric BE7/ Vision series (S,X,T, SXT)). LCV growth is projected at 1.6x (~10% CAGR over FY25-30P), while SUVs are expected to deliver higher CAGR through premiumisation, EV penetration, and global reach. In FES, M&M remains the world’s largest tractor manufacturer, with FY20–FY25 delivering 1.7x revenue, 1.4x volume, and 2.6x PBIT growth, supported by rising share in the 40–50 HP segment (gone up to 64% in FY25 from 49% in FY20) and domestic market share gains to 43.3%. The company aims to triple farm revenue by FY30 through domestic leadership, international scaling (US, Brazil, ASEAN), farm machinery expansion, and tech-led solutions in electrification, autonomy, and precision farming, with domestic industry CAGR guidance raised to 9% for FY25–FY30 from 7% earlier. We maintain our ADD rating with a target price of INR 4,032 (SOTP valuation, 25x core business).

* Auto segment: M&M’s automotive business continues to demonstrate strong market leadership with structural gains across SUVs and LCVs, holding the #1 revenue share in SUVs and over 50% share in <3.5T LCVs, supported by a refreshed portfolio, strong brand equity, and deep rural penetration. Auto revenues have grown 3.2x over FY20–FY25 (26% CAGR), while PBIT surged 6x, reflecting robust operating leverage and disciplined capital deployment. M&M targets 8x revenue growth by FY30 to INR 2,270 bn (20% CAGR), driven by cutting-edge platforms (INGLO, NU_IQ), sustained LCV dominance, and a renewed global strategy with the Global Pik-Up platform. LCV growth is projected at 1.6x over FY25–FY30 (~10% CAGR), supported by post-GST formalization, improved TCO, infrastructure spending, and coverage across payloads and energy types. Within SUVs, M&M is preparing for a major portfolio upcycle, targeting domestic premiumisation and global expansion across RHD and LHD markets (slated to launch Global Pik up). M&M sees significant white space with ~70% of the domestic PV market and the global mainstream SUV segment yet untapped by its current positioning, and expects higher SUV CAGR driven by premiumisation, multiple EV launches, rising EV contribution, and higher realizations from top-end ICE variants, alongside overall industry growth

* FES segment: The Farm Equipment business remains a resilient value compounder and a global leader, with M&M maintaining its position as the world’s largest tractor manufacturer. Between FY20 and FY25, revenue grew 1.7x, global volumes rose 1.4x, and PBIT expanded 2.6x, supported by increasing share in the fast-growing 40–50 HP segment (contribution gone up to 64% in FY25 from 49% in FY20) and steady domestic market share gains to 43.3%. The company targets 3x farm revenue growth by FY30, driven by (1) strengthening domestic tractor leadership, (2) scaling international operations in the US, Brazil, and ASEAN (Upcoming launches in international markets include new high-horsepower models, the NOVO line, and the OJA series), (3) expanding the farm machinery franchise (already >INR 10 bn), and (4) advancing a strong technology roadmap including electrification, autonomy, and precision agriculture solutions. Additionally, management has raised industry CAGR guidance to 9% from 7% earlier for FY25–FY30P.

* The Truck & Bus (CV) business: The business is entering a high-growth phase following the SML integration, with M&M aiming to become a top-3 player in ILCVs while building a focused presence in HCVs. India’s CV industry (~INR 1,500 bn) is expected to grow to ~ INR 2,000 bn by FY31, supported by infrastructure investment, logistics formalisation, fleet modernisation and GST 2.0. Mahindra’s combined CV strategy leverages synergies across network, sourcing, R&D and manufacturing, while retaining dual brands for differentiated positioning. The company targets 6x revenue growth in this decade, aiming for 30%+ share in ILCV trucks, 20%+ in buses, and selective play in profitable HCV niches. With improved uptime, low TCO, advanced telematics (iMAXX), and an in-house bus body facility, M&M is structurally well positioned to capture share from incumbents whose dominance is visibly declining.

* Other highlights: 1) M&M’s Aerostructures business is set for 12x revenue growth this decade, aiming to become a top-10 global supplier. Backed by strong partnerships with Airbus, Boeing, Embraer, and GE, and a shift to complex assemblies like fuselage sections and nacelles, the business is investing in advanced capabilities such as composites and design engineering. Extended contracts, rising localization, and operational excellence provide a long-term, globally diversified growth runway with strong margin potential. 2) M&M’s Last Mile Mobility plans to grow revenue 6x by FY2030, electrify 50% of its portfolio, and expand to 10+ global markets. The strategy focuses on rapid EV adoption, portfolio expansion in 3- and 4-wheelers, and placing 1 million electric vehicles on Indian roads by 2031.

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