Daijiworld Media Network – Mumbai
Mumbai, Jul 31: The Q1 FY26 earnings season brought a mixed bag of performance across companies like Mahindra & Mahindra (M&M), Navin Fluorine International, and others, reflecting sector-specific pressures and strategic transitions.
Mahindra & Mahindra:
Auto major Mahindra & Mahindra reported a standalone EBITDA margin of 14.3% for Q1 FY26, largely in line with internal estimates but slightly below the Bloomberg consensus of 14.5%. The auto division's EBIT margin slipped by 34 basis points to 8.9% quarter-on-quarter, primarily due to rising contract manufacturing activity for its electric vehicle arm, Mahindra Electric Automobile Ltd. (MEAL).
Despite margin pressure, the farm division continued to show strength with an EBIT margin of 19.8%, beating projections. M&M has reaffirmed its SUV segment growth forecast in the mid-to-high teens for FY26. Management also assured adequate raw material stock amid global rare earth supply concerns and is actively exploring alternative solutions like ferrite-based systems.
The company’s core business is valued at 19 times the projected June 2027 earnings, resulting in a target price of ?3,520, with analysts maintaining an "Add" rating. The shift towards electric contract manufacturing is expected to impact standalone margins in the short term but improve financial performance at the EV subsidiary level.
Navin Fluorine International:
Navin Fluorine posted a strong Q1, buoyed by higher demand for refrigerant gases. The company’s EBITDA matched expectations, while Adjusted PAT surpassed estimates thanks to lower interest expenses. Backed by long-term contracts, a strong CDMO pipeline, and the ramp-up of new facilities, analysts reiterated a “Buy” call with a target price of ?5,551. The outlook remains positive, driven by strong operational fundamentals and ongoing expansion.
Outlook Ahead:
As India Inc. navigates supply-side pressures, changing consumer trends, and strategic pivots towards clean technology and advanced manufacturing, companies like M&M and Navin Fluorine are positioning themselves to benefit from medium- to long-term industry tailwinds.