The two leading four-wheeler players, Mahindra & Mahindra and Maruti Suzuki India had reported robust vehicle sales in the March 2026 quarter, and it was a continuation of the strong sales seen in the festive season of Q3FY26.
For instance, Maruti Suzuki India had recorded its highest-ever vehicles sold in a quarter in Q4FY26.
The government in September 2025 had implemented GST cuts to 18% for car engines with a capacity up to 1200 cc coupled with SUVs taxed at a unified 40% GST, as against an earlier effective total tax of up to 50%, and it had helped the broader four-wheeler industry considerably.
Investors on Dalal Street were also keen to understand how the two leading four-wheeler players had dealt with surging raw material costs, steel and copper, in the fourth quarter of FY26.
This concern had led to Mahindra & Mahindra dropping nearly 15% from its 52-week high in early January 2026, while Maruti Suzuki India had fallen 22% from its 52-week high in early January 2026.
Mahindra & Mahindra in Q4FY26 – 23.5% jump in SUV sales and a 36% jump in tractor sales
Operational standalone performance in the March 2026 quarter
| Company | Growth in net sales (% change y-o-y) | Growth in net profit (% change y-o-y) |
| Mahindra & Mahindra | 26.2% | 53.3% y-o-y |
| Maruti Suzuki India | 28.2% | Fall of 7% y-o-y |
Mahindra & Mahindra once again demonstrated the strength in its core automotive and farm business in the March 2026 quarter – it is the leading player in the high-margin SUV segment along with tractors and light commercial vehicles (LCVs).
The company has highlighted its sales of SUV rose 23.5% y-o-y to 184,000 units in the March 2026 quarter, and that was thanks to strong demand for SUVs and electric models like BE 6, XEV 9E and XEV 9S in the quarter in the review.
The company has highlighted once again it has the largest market share in the SUV segment, with a 25.3% revenue market share in this segment at the end of FY26, a rise of 260 basis points y-o-y.
Its SUV sales had jumped 26% y-o-y to 179,000 vehicles in Q3FY26.
Meanwhile, its tractor volumes, where the company also has the largest domestic market share, jumped 36% y-o-y to 120,000 units in the March 2026 quarter, and that was from the momentum of the above normal monsoon last year.
As a result, Mahindra & Mahindra’s standalone revenue from operations rose 26.2% y-o-y to Rs 39,554.1 crore in the March 2026 quarter.
Managing raw material cost pressure
Mahindra & Mahindra’s raw material costs (cost of materials consumed and purchase of stock-in-trade) as a percentage of 3 standalone revenue from operations rose 560 basis points y-o-y to 79.7% in Q4FY26. The broader auto sector has faced higher metal costs in Q4FY26.
However, given Mahindra & Mahindra’s strong position in the SUV and tractor, its standalone operating profit margin basis declined barely 80 points y-o-y to 14.1% in the March 2026 quarter.
Strong growth in SUV and tractor sales helped Mahindra & Mahindra’s standalone net profit rise 53.3% y-o-y to Rs 3,737.3 crore in the March 2026
Mahindra & Mahindra’s core auto and farm equipment business is reflected in its standalone quarterly results.
Maruti Suzuki – highest ever vehicles sold in the March 2026 quarter
Maruti Suzuki India, the largest domestic player, had earlier highlighted its highest-ever vehicle sales in the March 2026 quarter, 6,76,209 units, a rise of 11.8% y-o-y. Of equal importance, the company’s high margin SUV vehicle sales jumped 14.9% y-o-y to 219,715 units in Q4FY26.
Consumers are increasingly shifting to more high-end SUV vehicles with electric engines over the past several quarters. To catch-up with its peers in the segment, Maruti Suzuki had recently launched the Victoris and the e Vitara models.
Of concern is that in the entry level mini and compact segment, vehicle sales fell nearly 4% y-o-y to 247,154 units in the March 2026 quarter.
Order backlog of nearly 190,000 units at end of FY26
Maruti Suzuki India in its results press release has clarified that its sales were restricted by a limitation in its production capacity, with nearly 190,000 pending customer orders at end of FY26. The above order backlog included nearly 130,000 orders pending in its small car segment at the end of FY26.
Meanwhile, strong sales of SUVs helped Maruti Suzuki’s total revenue from operations rise 28.2% y-o-y to Rs 52,449.3 crore in the March 2026 quarter. Its total raw material costs (cost of materials consumed and purchase of stock-in-trade) as a percentage of total revenue from operations rose nearly 270 basis points y-o-y to 73.4% in Q4FY26. Maruti Suzuki India also had to face higher metal costs in the March 2026 quarter.
However, Maruti Suzuki’s realisations rose 13.1% y-o-y to Rs 7.75 lakh in the March 2026 quarter helped by strong SUV sales in the quarter under review. As a result, its operating profit margin was broadly flat y-o-y to 11.7% in the March 2026 quarter.
Nevertheless, a 24% y-o-y rise in tax expenses resulted in Maruti Suzuki’s standalone net profit declining nearly 7%y-o-y to Rs 3,590.5 crore in the March 2026 quarter.
Maruti Suzuki India’s core automotive operations are reflected in its standalone quarterly results.
Return on Equity (RoE)
Mahindra & Mahindra has a standalone RoE of 20.8%, according to Screener.in.
Meanwhile, Maruti Suzuki has a standalone RoE of 14.5%.
Growth outlook
The two auto companies are expanding their product portfolio to leverage the stock demand conditions.
Mahindra & Mahindra plans to launch models including Mahindra BE.07 and Mahindra XUV 3XO CNG in the current calendar year.
Meanwhile, Maruti Suzuki India is attempting to further strength its presence in the SUV segment in calendar year 2026 with models including a 7-seater electric vehicle, and the updated Brezza and Maruti Fronx models.
Investors will also be closely monitoring how quickly the company can fulfil its 1,90,000 order backlog at the end of FY26. For instance, Maruti Suzuki’s vehicle sales in April 2026 grew 16.5% y-o-y to 209, 565 units.
Of equal importance, investors will be closely monitoring the trend in key raw material costs for both the four-wheeler players, and the price hikes planned.
Mahindra & Mahindra v/s Maruti Suzuki – Is it still worth buying Mahindra & Mahindra?
Comparative valuations of the two auto companies
| Company | Standalone P/E |
| Mahindra & Mahindra | 24.6 times |
| Maruti Suzuki India | 29.3 times |
Mahindra & Mahindra reported a strong operational performance in the March 2026 quarter.
Mahindra & Mahindra ended 3.9% higher at Rs 3,225.4 on Tuesday, and the stock had reached a 52-week high of Rs 3,840 on 5 January, 2026.
Mahindra & Mahindra trades at a standalone P/E of 24.6 times. Over the past 5 years, the stock has traded at a standalone P/E between 18.7 times and 72.5 times.
Meanwhile, Maruti Suzuki ended 1% lower at Rs 13,448 on Tuesday, and the stock had reached a 52-week high of Rs 17,371.6 on 5 January, 2026.
Maruti Suzuki India trades at a standalone P/E of 29.3. Over the past 5 years, the stock has traded at a P/E between 24.9 times and 85.3 times.
Maruti Suzuki India is strengthening its SUV portfolio with new model launches. In addition, the New Delhi-based company has an order backlog of nearly 190,000 units at the end of FY26, and it should provide sales momentum to the company over the next few quarters.
Maruti Suzuki no doubt, trades at a higher P/E than Mahindra & Mahindra. However, given the growth opportunities for Maruti Suzuki India over the next few quarters, investors could put this stock on their watch list for 2026, and monitor if the company’s performance matches expectations.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
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