汇丰：马恒达（MM.IN）-印股公司研究：1QFY26 SUV在低迷市场延续增长势能-250731（英文版）（14页）.pdf

1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Securities and Capital Markets(India)Private Limited View HSBC Global Investment Research at:https:/ Cl

2、ick toviewHesitantbullsofsummer|The20theditionoftheEMSentimentSurvey 1QFY26 margin performance was in line for both Auto and core tractor businesses M&M maintained FY26 growth guidance in the teens for Autos and high single digit for tractors,which is sector-leading Maintain Buy rating and INR3,570

3、TP;competition likely to rise,but near-term earnings should remain resilient M&M reported a strong quarter,with EBITDA margin of 14.3%(versus consensus estimate of 14.5%),largely led by a beat in the farm business.The EV business reported 3.6%EBITDA margin in 1QFY26(ex PLI benefit),up from 1%in 4QFY

4、25.Currently,M&M is only selling Pack-3(top-end)variants of its BEVs and will start selling Pack-1 and Pack-2(low and mid)variants in the coming months.This should be margin dilutive for the EV business in the near term.Management maintained FY26 guidance of low to mid-teen SUV growth and high singl

5、e digit Tractor industry growth.It plans to ramp up EV production to 5k units/month by 4QFY26.M&M said that it has sufficient rare earth metal inventory for the next couple of quarters.Investment thesis:M&Ms 1QFY26 was reflective of its resilient earnings profile.M&Ms success stands in contrast to i

6、ts peers like Hyundai and MSIL.The past few years have been extremely strong for the company as most of the new SUV launches have been successful.Even in FY26e,we expect M&Ms growth to be far superior to its peers due to the full-year benefit of these launches.The tractor business is in a strong pos