# M&M auto segment set for gains despite Q1 margin miss

2026-08-08T16:17:52+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Mahindra & Mahindra's Q1FY27 operating profit missed estimates as gross margins fell, yet the auto segment is poised for near-term gains, rediff.com reports. Revenue rose 23 per cent year-on-year, with auto revenue up 24 per cent on an 18 per cent volume increase. SUV market share reached 25 per cent, up 50 basis points, and electric SUVs made up 12 per cent of volumes. The company is adding 10,000 ICE and 4,000 BEV units in H2FY27, planning to double utility vehicle capacity to 132,000 units a month by FY31. Brokerages remain bullish: Emkay retained a 'buy' with a target of Rs 4,100, while CLSA upgraded to 'outperform' with a Rs 4,588 target, citing SUV demand and a resilient tractor outlook.

## Coverage

- rediff.com <https://www.rediff.com/business/report/auto-mahindra--mahindra-auto-segment-to-power-near-term-gains-despite-q1fy27-margin-miss/20260808.htm>

Tags: auto sector, brokerage views, M&M, Q1 results, SUV demand
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