M&M cuts FY27 tractor industry growth forecast to zero
The company revised its growth outlook from 5 per cent to nearly flat due to poor rainfall and drought conditions.
Mahindra & Mahindra (M&M) has reduced its growth projection for the domestic tractor industry volume to nearly flat for the 2027 financial year, according to The New Indian Express.
The company previously estimated that tractor sales would grow by 5 per cent in FY27. M&M Executive Director and CEO for Auto and Farm Sector Rajesh Jejurikar stated that a significant deterioration in rainfall and poor reservoir levels are two strong driving factors for the revision.
Jejurikar said higher input costs for farmers and drought conditions in Maharashtra and Karnataka, which are large tractor markets, have impacted industry volume. M&M data showed the southwest monsoon ended at 87 per cent of the long-period average, while reservoir storage was 16 per cent below normal as of October 15.
While Southern and Western markets faced impacts from lower rainfall, M&M noted that northern markets like Uttar Pradesh remain strong and Madhya Pradesh is showing signs of improvement. The domestic tractor industry sold approximately 11.6 lakh units in FY26, growing by 23.47 per cent.
In its second-quarter results for FY27, M&M reported a 25 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 4,588 crore. Consolidated revenue from operations also increased by 25 per cent to Rs 57,553 crore during the July-September quarter.
M&M Group CEO & Managing Director Anish Shah said the 25 per cent PAT growth reflects the resilience of the group. He noted that while the auto segment grew due to consumer demand, the farm segment experienced a marginal decline because of the festive season shift.