M&M Shares Tumble as Tractor Sales Slump
Mahindra & Mahindra (M&M) shares fell 3.52% on Thursday, hitting a 52-week low of Rs 2,843.65 per share on the BSE. The drop came after the company’s September 2026 sales figures missed market expectations, particularly in the tractor segment.
At 9:48 am, M&M shares were trading 2.31% lower at Rs 2,879.30 per share, while the BSE Sensex was down 0.12% at 72,402.
Auto Sales Growth, But Tractor Sales Disappoint
M&M announced a 15% year-on-year (YoY) rise in total auto sales to 1,14,874 units in September 2026. Domestic passenger vehicle sales were strong, with utility vehicle sales up 14% YoY to 64,092 units.
However, the main letdown was tractor sales. M&M sold 52,100 tractors in September, down 21% YoY and under the market expectation of 57,433 units. Domestic tractor sales dropped 23% YoY to 50,208 units, while exports climbed 62% YoY to 1,892 units.
Commercial Vehicle Sales Rise, Exports Mixed
M&M’s domestic commercial vehicle sales rose 14% YoY to 30,420 units in September 2026. Light commercial vehicle (LCV) sales below 2 tonnes increased 19% to 4,044 units, while sales in the 2-tonne to 3.5-tonne category rose 13% to 26,376 units.
Three-wheeler sales, including electric three-wheelers, jumped 26% YoY to 16,343 units. For the first six months of FY27, three-wheeler sales increased 53% to 82,058 units.
M&M’s total auto exports fell 7% YoY to 4,019 units in September 2026. However, year-to-date total exports were 30,031 units, an increase of 48% from the same period last year.
Market Reaction and Company Commentary
Dr Velusamy R, President of Automotive Business at M&M, highlighted the strong performance in SUV sales, which clocked 64,092 units with a growth of 14%. However, the significant miss in tractor sales has put pressure on the company’s shares.
M&M attributed the relatively lower growth in auto sales to a high base following the GST cut in 2025. The company also flagged this impact on September auto sales growth, but the market appears more concerned with the tractor sales decline.
