Mahindra & Mahindra (M&M) has cautioned that rising geopolitical tensions, including the evolving crisis in West Asia, could cast a shadow on supply chains and demand even as the company positions its fast-growing SUV portfolio as the primary engine of expansion.

“We remain watchful of the external environment—geopolitical developments can influence both demand and supply,” said Rajesh Jejurikar, Executive Director and CEO for Auto and Farm Sector, underlining that global uncertainties remain a key variable in the near-term outlook.

The caution comes even as the company closed FY26 on a strong footing, with consolidated profit after tax rising 35% year-on-year to ₹17,099 crore and revenue growing 25% to ₹1.98 lakh crore, supported by robust performance across auto and farm segments.

Despite these risks, M&M is betting on sustained traction in utility vehicles. “For SUVs, we will aim for mid- to high-teen growth… we are putting in place manufacturing capacities to support that,” Jejurikar said, pointing to a strong order pipeline and continued consumer preference for premium offerings.

M&M retained its leadership in SUV revenue market share at 25.3% in FY26, with volumes crossing 6.6 lakh units in the domestic market. The segment’s resilience stands in contrast to the farm business, where growth is expected to remain measured. “This is a cyclical business… we manage our margins within a band,” Jejurikar noted, referring to tractors, where industry growth is likely to stay in the mid-single digits.

Capacity build-out to ease supply constraints

To avoid past supply bottlenecks, the company is accelerating capacity creation in a phased, demand-linked manner. “By the first half of FY27, we will be at about 68,000 units of operational capacity,” Jejurikar said. This is up from 64,500 units at the end of FY26.

The ramp-up will continue through the year. “As we exit FY27, we will add capacity for new launches… ensuring we are ready ahead of demand rather than reacting to it,” he said. The strategy marks a shift from reactive expansion to pre-emptive capacity planning, especially after supply-side challenges impacted certain models in the fourth quarter.

M&M is also investing in future manufacturing capabilities, including a new greenfield facility in Nagpur. The company has lined up a capital expenditure of around ₹15,000 crore for this plant which is expected to come on stream from calendar year 2028. “The greenfield plant is planned for CY28 and beyond,” Jejurikar said, adding that it will support next-generation platforms and scale up over time.

EVs, exports add new growth levers

Electric vehicles are emerging as a parallel growth driver, both domestically and globally. “We have sold around 55,000 electric SUVs since launch… and we continue to be number one in electric SUV revenue market share,” Jejurikar said. EV penetration in the company’s portfolio has already outpaced industry averages, supported by recent launches.

The EV push is also feeding into M&M’s export ambitions. The company shipped over 40,000 vehicles overseas in FY26, with electric SUVs expected to play a larger role as global markets shift toward cleaner mobility.

At the same time, M&M is recalibrating its international farm business, exiting select geographies to improve capital efficiency. “With these changes, we see a path to profitability,” Jejurikar said.

Backed by a strong SUV pipeline, rising EV traction and a calibrated capacity build-up, M&M is preparing for its next growth phase—while keeping a close watch on external risks that could reshape the operating landscape.