Analysts Are Updating Their Mahindra & Mahindra Limited (NSE:M&M) Estimates After Its Annual Results

It's been a good week for Mahindra & Mahindra Limited (NSE:M&M) shareholders, because the company has just released its latest full-year results, and the shares gained 3.6% to ₹3,033. Mahindra & Mahindra beat revenue expectations by 4.3%, at ₹1.6t. Statutory earnings per share (EPS) came in at ₹115, some 3.1% short of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus, from the 32 analysts covering Mahindra & Mahindra, is for revenues of ₹1.36t in 2026. This implies a considerable 16% reduction in Mahindra & Mahindra's revenue over the past 12 months. Statutory per-share earnings are expected to be ₹116, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹1.72t and earnings per share (EPS) of ₹118 in 2026. So there's been a clear change in sentiment after these results, with the analysts making a pretty serious reduction to revenues and reconfirming their earnings per share estimates.

Check out our latest analysis for Mahindra & Mahindra

The consensus has reconfirmed its price target of ₹3,557, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Mahindra & Mahindra's market value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Mahindra & Mahindra, with the most bullish analyst valuing it at ₹4,000 and the most bearish at ₹2,760 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 16% by the end of 2026. This indicates a significant reduction from annual growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.4% annually for the foreseeable future. It's pretty clear that Mahindra & Mahindra's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹3,557, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Mahindra & Mahindra going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Mahindra & Mahindra you should be aware of, and 1 of them is significant.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.