Auto stocks have been in the limelight with demand from consumers showing signs of pick-up in the festive season post the GST rate cuts. And amongst the leading four-wheeler players who have declared their quarterly results, Mahindra & Mahindra (M&M) with its leadership position in the SUV segment appears to have benefited the most from the pick-up in festive demand late in the second quarter of FY26.
M&M declared its results on Tuesday, and the stock ended the day’s trade 0.9% higher at Rs 3,581, and not too far from 52-week high of Rs 3,723 that was reached on 9 September 2025.
Meanwhile, Maruti Suzuki India ended Tuesday’s trade 1.8% lower at Rs 15,370.5 and not too far from its 52-week high of Rs 16, 673.9 that was reached on 23 October 2025.
And Hyundai Motor India ended Tuesday’s trade 1.4% lower at Rs 2,393.2, and its 52-week high of Rs 2,889.6 was reached on 22 September 2025.
The Q2 scorecard: A tale of three automakers
M&M’s standalone income from operations grew 21.3 % y-o-y to Rs 35,079.8 crore in the September 2025 quarter, and that was thanks to total vehicles sold that increased 13% y-o-y to 2.61 lakh in the quarter under review. The Mumbai-based company has highlighted that SUV sales jumped nearly 26.9% y-o-y to 145,500 units in the September 2025 quarter and that was owing to strong demand for their redefined Thar model and e-SUV.
A strong monsoon this year also helped the company’s tractor sales rise 32% y-o-y to 1.22 lakh in the second quarter of FY26. As a result, the company’s core standalone operating profit margin rose 20 basis points y-o-y to 18.6% in the September 2025 quarter. Its standalone net profit also rose 17.7% to Rs 4,520 crore in the second quarter of FY26.
Meanwhile, Maruti Suzuki’s vehicle sales volume grew barely 1.7% y-o-y to 550,874 units in the September 2025 quarter, and that was largely due to sluggish demand in its entry level ‘A’ segment, for models like Alto and S-Presso. The New Delhi-based company however, witnessed strong demand for SUV models like Brezza, Fronx and Grand Vitara.
The company’s revenue from operations rose 13.2% y-o-y to Rs 42,100.8 crore in the September 2025 quarter, however, its core operating profit margin fell nearly 130 basis points y-o-y to 10.4 % in the quarter under review. The company faced rising employee and raw material costs in the second quarter of FY26. A lower tax bill helped Maruti Suzuki to report a 7.3% y-o-y growth in its standalone net profit to Rs 3,293 crore in the September 2025 quarter.
And, Hyundai Motor India, its total vehicle sales fell 0.5% y-o-y to 190, 921 units in the September 2025 quarter, and that was attributed to a 6.8% y-o-y fall in domestic vehicle sales in the quarter under review. In the domestic market in the quarter under review, the company has highlighted a fall in sales in hatchback cars, models like Grand i10, as well as for its SUV models.
Its standalone revenue from operations grew barely 1.1 % y-o-y to Rs 17,061 crore in the September 2025 quarter, and core operating profit margin improved 130 basis points y-o-y to 13.9% in the quarter. The company has highlighted 21.5 % y-o-y growth in vehicle sales overseas and tight check on costs helped it to improve operating margins in the quarter under review. Its standalone net profit grew 17.4 % y-o-y to Rs 1,570 crore in the September 2025 quarter.
Efficiency check: Who makes the most from its assets?
M&M has a ROCE of 27% on a standalone basis, according to Screener.in, while for Maruti Suzuki it is 21.7%.
And for Hyundai Motor India it is 54.2%.
The 2026 Pipeline: What’s Next?
Four-wheeler sales are expected to remain buoyant over the next few quarters with auto loan rates attractive and consumer spending strengthening. A further boost has been provided by the GST rate cut.
To leverage the growth opportunities, Hyundai Motors India has aggressive launches planned for 2026 with models like e-car Hyundai Ioniq 6, SUV Hyundai Palisade and e-vehicle Hyundai Inster.
And Maruti Suzuki is also looking at several car launches in 2026 including electric car Maruti Suzuki eWX, electric SUV Maruti Suzuki eVitara and Maruti Suzuki Fronx Hybrid.
M&M too has several car launches planned including Mahindra BE 07 and Mahindra Bolero 2026. The company has announced the launch of its third born electric’ vehicle later this month.
Valuations: Is the growth already priced in?
M&M trades at a P/E of 31.8 on a standalone basis, according to Screener.in, while for Maruti Suzuki it is 32.7.
Hyundai Motor India trades at 34.7 times.
The growth in four-wheeler sales is expected to remain strong over the next few quarters with attractive car loan rates and consumer spending strengthening. However, the street appears to have already factored in the growth opportunities for these auto companies in the short-term.
Note: Tata Motors PV, the other big player in this space, has yet to declare Q2 results and therefore we could not include it in our analysis.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclosure: The writer and his family do not hold the stocks discussed in this article.
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