Mahindra Hits Record 43.6% Quarterly Tractor Market Share in Q4 FY26

Mahindra and Mahindra's tractor business closed FY26 with its highest-ever quarterly market share of 43.6%, backed by farm volume growth of 24% for the year and a 1.5% expansion in farm margins. Farm machinery revenue rose 32% to Rs 1,354 crore in FY26.

"This is our highest-ever quarter market share. Farm machinery had very robust growth too," said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sectors, at the company's Q4 and FY26 media conference today.

The company has consistently maintained margins within a defined band over successive quarters, even as industry volumes swung between high single-digit growth and near-19% contraction. Farm standalone PBIT (Profit Before Interest and Taxes) stood at 19.4% for Q4 FY26, flat against Q4 FY25 but up from 15.8% two years prior.

On the product side, Mahindra upgraded approximately 50% of its tractor portfolio in the 31 to 50 HP range, which accounts for the bulk of domestic demand. The 41 to 50 HP version has been rolled out across seven states, including West Bengal, Telangana, Madhya Pradesh, Haryana, Bihar, Karnataka, and Assam, with pan-India coverage planned for CY26. The new range features upgraded engine torque, 2WD and 4WD configurations, dual-clutch, and reduced mechanical complexity.

Swaraj, Mahindra's second tractor brand, launched the Swaraj ProTek, which is currently available in Punjab, Haryana, and Rajasthan. It is planned for a pan-India launch in FY27.

For FY27, the company has lined up 19 tractor launches and enhancements, comprising 7 new models and 12 feature additions.

On the international front, Mahindra completed the sale of Finnish combine harvester maker Sampo Rosenlew, initiated the liquidation of MAM Japan under Japanese law with a wind-down planned through FY27, and announced the sale of Turkey-based Erkunt Foundry, expected to close in the first half of FY27.

In the three markets that remain strategic, Mahindra gained share despite difficult industry conditions. North America has been in a sustained downturn, yet Mahindra's retail share in the sub-110 HP segment grew from 5.9% in FY24 to 6.3% in FY26. In Brazil, where the industry contracted 2.2%, the share moved from 6.0% to 6.6%. Turkey saw the steepest industry decline at 40%, driven by hyperinflation and constrained financing access; Mahindra's share there edged up from 5.5% to 5.8%.

Anish Shah, MD and CEO, described the international exits as deliberate capital allocation decisions. "That's the key action this year, in terms of cleaning out the challenges we had internationally," he said.

Mahindra expects the tractor industry to grow in mid-single digits in FY27. The farm business's long-run revenue trajectory is set at 3x growth from FY20 levels already achieved in FY26, with a further 1.5x to 2x growth targeted by FY31.