Mahindra Raises Tractor Growth Forecast For FY26 to Low Double Digits

The largest tractor maker in the world, Mahindra & Mahindra has revised its industry growth outlook for FY26 to low double digits, driven by good monsoon rains, healthy reservoir levels, and the recent GST cut in September 2025.

“The tractor outlook we’d given at the beginning of the year was 5 to 6% industry growth. We're increasing that to low double digits because the year's been much better, the rainfalls have been good, reservoir levels are good and we've also factored in the benefit of the lower GST,” said Rajesh Jejurikar, Executive Director, CEO of the Auto and Farm Sector, M&M.

Earlier in the year, the company had projected high single-digit growth for the domestic tractor industry. The revision aligns with ICRA’s upgraded forecast for 2025-26, which now pegs India’s tractor industry growth at 8–10%, up from 4–7% earlier, following the above-normal monsoon and the GST cut to 5% implemented in September 2025.

In 2024–25, the tractor industry came close to its previous peak with 939,713 units sold in the domestic market, marking an 8.36% growth. September 2025 saw wholesale tractor volumes soar 45% on-year to 146,180 units. Industry executives say the 7-percentage-point GST reduction could translate into savings of Rs 40,000–60,000 per tractor, making them more affordable for farmers and rural entrepreneurs.

M&M’s farm equipment division reported a strong Q2 2025-26, achieving its highest-ever second-quarter market share at 43%, up 50 basis points. 

“The strong performance of our Auto and Farm businesses continues in Q2 FY26, reinforcing our leadership position with a gain of 390 basis points year-on-year in SUV revenue share,” Jejurikar said.

The farm division’s volumes rose 32% to 123,000 tractors, while standalone profit before interest and tax (PBIT) jumped 48% to Rs 1,684 crore, with margins expanding 220 basis points to 19.7%. Core tractor PBIT margins improved to 20.6%. Consolidated revenue from the segment climbed 25% to Rs 10,225 crore, and consolidated profit after tax (PAT) surged 45% to Rs 1,163 crore.

“We are pleased with the strong execution and solid performance delivered across the group in Q2 FY26. Auto and Farm sustained their leadership with consistent gains in market share and profitability," said Anish Shah, Group CEO and Managing Director.