Mahindra & Mahindra Ltd (M&M) delivered a strong performance in the fourth quarter of FY26, supported by robust growth in its automotive segment.

Nuvama Institutional Equities noted that the company reported a healthy set of numbers during the quarter. "Q4 FY26 revenue surged 26 per cent YoY (year-on-year) to Rs 39,550 crore, above our estimate of Rs 38,150 crore. EBITDA increased 19 per cent to Rs 5,560 crore, slightly above our estimate of Rs 5,440 crore, owing to revenue beat," the domestic brokerage stated.

It added, "Factoring in higher auto volumes, we increase our FY27/28 EPS estimates by 3 per cent each."

Nuvama also said, "Over FY26–28E, we expect auto revenue CAGR at 15 per cent on healthy demand and new launches."

New product momentum continues to support demand, with the brokerage highlighting, "Recently launched XUV 7XO and XEV 9S saw strong customer response. By 2031, the pipeline shall expand by 10 ICEs (one refresh + nine new) and six EVs. On upcoming models, Vision Series (S, SXT, X, T) model launches across multiple powertrains are planned CY27 onwards."

That said, Nuvama mentioned that "farm revenue growth is likely to moderate to 5 per cent CAGR after a robust 25 per cent growth in FY26."

Maintaining a positive stance, the brokerage retained its rating on the stock. "Overall, we expect revenue/core earnings CAGR to be 13 per cent/7 per cent over FY26–28E, with a RoIC of ~60 per cent. Retain 'BUY' with a TP of Rs 3,800 (earlier Rs 3,600) on 25x core FY28E EPS and investment value of Rs 580/share (earlier ~Rs 550). The stock trades at core FY26/27E/28E PE of 23x/22x/21x," Nuvama stated.

Separately, Sharad Avasthi, Head of Research (PCG) at SMIFS, stated that M&M reported decent earnings in Q4 FY26, a beat on most of the key things. "Valuation-wise, we are not able to find too much upside from current levels," he told Business Today TV.

Shares of M&M were last seen trading 2.79 per cent higher at Rs 3,301.25 in Wednesday's early trade.