Mahindra & Mahindra vs Ashok Leyland: Q2 FY26 Stocks Battle in $250B Auto Boom

Indian Automobile Industry 2025: Growth Trends and Investor Outlook

With a scale of $250 billion in 2025, India has the world's third-largest automobile production, hence driving economic growth through robust sales and EV momentum, a factor that makes the sector so attractive to investors.?

Total sales of vehicles touched 70.7 lakh units in Q2 FY26, with 55.62 lakh being two-wheelers. Total passenger vehicles sold across categories touched an all-time high of 4.34 million units in FY25 over 4.23 million units sold in the previous fiscal. Sales jumped in October 2025 with passenger vehicles touching 4.61 lakh, up 17.2% YoY, on festive demand and GST reforms.?

EV Shift Accelerates Investment Appeal:

Registrations topped 2.02 million in 2025, with electric car sales up 20.8% YoY and two-wheelers rising 33%. Projections indicate that the EV market would reach Rs.20 lakh crore by 2030, supported by a reduction in battery costs, 26,000-plus charging stations, and PLI schemes that attracted $29 billion FDI.?SUVs dominate passenger sales with over 60% share, while exports rose 23% in Q2 FY26. 

Nifty Auto Trends: M&M Shines Amid Leyland's Steady Climb

Nifty Auto, representing a current value of around 27,700, has modest gains in December 2025, with its average historical rise at 0.73%. Recent sessions have moved between 27,643 and 28,014. Mahindra & Mahindra stock price trades at Rs.3,717, up 0.66% in recent times on strong demand for SUVs, with a P/E of 32.5 and a six-month rise of 22% following strong festive sales and rate cuts. Ashok Leyland share price  is trading at Rs.161. Its Q2 revenues were up 12.9% YoY to Rs.12,577 Cr; net profit grew 6.9%. However, it is facing short-term slowdowns in CVs. Policy tailwinds, export growth, and revival of demand in 2-3 years are positives. 

Company Profiles & Business Segments

Overview of Mahindra & Mahindra: Business Mix, Strategy, and Recent Trends in 2025

M&M leads India's auto landscape with diversified business interests across automotive making up 57% of Q2 FY26 revenue at Rs.27,171 crore, up 25% YoY, farm equipment 22% at Rs.10,225 crore, up 25%, financial services 11%, and others.?

The Company's "Rise 2030" strategy targets 8 times in SUV/LCV growth, 3 times tractors growth, and 6 times in trucks/buses growth by FY30.The focus is on EV leadership with 1 million units on the road by 2031 via INGLO platform and new launches such as XEV 9e. In November 2025, SUVs reached 56,336 units, up 22% YoY, while total vehicles were up 19% at 92,670 units.?

Q2 FY26: Consolidated revenue reached Rs.46,106 crore, up 22% YoY, while PAT came at Rs.3,673 crore, up 28%, with RoE at 19.4%. M&M total sales of 92,670 in commercial vehicle, up 29% YoY, underlining the former's broader edge.?

Trends favor M&M with festive surges and rural revival, positioning it for over 10 per cent sector growth in FY26.

Overview of Ashok Leyland: Business Mix, Strategy, and Recent Trends in 2025

Ashok Leyland is the leading commercial vehicle maker under Hinduja Group, deriving approximately 85% revenue from CVs in FY25. For FY25, topline is at Rs.387.53 billion, up modestly YoY. The key segments include MHCV trucks/buses (majority), LCVs, power solutions, which are up 14% YoY in Q2FY26, and defence, which is up 25% YoY.?

Q2FY26 standalone revenue reached Rs.9,588 crore, up 9.3% YoY, while EBITDA came in at Rs.1,162 crore, 12.1% margin versus 11.3% last year. November 2025 sales jumped 29% YoY to 18,272 units - domestic 16,491, up 32%, driven by MHCV trucks, up 30%, and buses, up 27%. Apr-Nov volumes rose 9% to 129,446 units. Switch Mobility sold approximately 600 e-buses/600 e-LCVs in H1FY26 and turned PAT positive.? Focus on premiumization, cost leadership, exports-18,000 units target for FY26 and 25,000 at mid-term levels, and alternate fuels such as EV/LNG. Resilience will come from North India expansion, reaching 26-30% share by 2028, and network growth in a 3-5% CV industry growth for FY26. Efficiency and mix to drive mid-teen EBITDA.

Mahindra & Mahindra vs Ashok Leyland Limited Share Price Trends

Mahindra & Mahindra vs Ashok Leyland presents a divergence in share price movements for Q2 FY26, considering the different portfolio mixes that include SUV/tractor strength for M&M against the CV-focused Ashok Leyland, supported by festive sales and/or policy boosts. At Rs.3,717, Mahindra & Mahindra ltd share price trades up approximately 20% YTD as of December 5, 2025, while Ashok Leyland has reached Rs.160.86, up 38% YTD.?

Q2 FY26 Share Price Performance Comparison

Post-earnings, M&M jumped 1.4% to Rs.3,632 on 5th November after an 18% PAT jump to Rs.4,521 crore, fueled by 22% SUV sales growth. Ashok Leyland rallied to a high of Rs.146.80 on November 10th following a 7% PAT rise to Rs.756 crore and 9.4% uptick in revenue.?

Both Mahindra & Mahindra vs Ashok Leyland stocks rallied 25-58% from April , lows on rural demand revival and GST reforms, with Ashok Leyland gaining sharper on MHCV surge (+30% Nov sales). 

Outlook favors 10-19% uptrend . With Mahindra & Mahindra share price target to reach Rs.4,450 via EVs/SUVs. Ashok Leyland share price target eyes exports/alt-fuels for mid-teens margins in 3-5% CV growth FY26. M&M offers stability whereas Ashok Leyland is with higher beta for cyclical plays.?

Q2 FY2026 Financial Comparison: Mahindra & Mahindra vs Ashok Leyland

Mahindra & Mahindra outperformed Ashok Leyland in Q2 FY26, with Rs.46,106 Cr sales, up 21.6% YoY, versus Rs.12,577 Cr for Ashok Leyland, up 12.8%, reflecting M&M's diversified SUV/tractor portfolio against the CV-heavy mix for Ashok Leyland. Both Mahindra & Mahindra vs Ashok Leyland reported resilient profitability on the back of festive demand. M&M posted a PAT of Rs.3,673 Cr, up 15.9% YoY, whereas Ashok Leyland recorded a PAT of Rs.782 Cr, up 23.6% YoY.?

Key Metrics Snapshot

Superior sales leverage for M&M's comes from a 22% SUV volume surge and tractor recovery, while Ashok Leyland gained from MHCV trucks up by 30% in Nov sales.?

Profitability Breakdown

M&M generated Rs.8,930 Cr operating profit on a broader scale, yielding 19.4% OP margin matching Ashok Leyland's efficiency despite Rs.2,441 Cr OP. Depreciation hit M&M harder at Rs.1,669 Cr (SUV capex) versus Rs.268 Cr, leading to Rs.8,405 Cr EBIT for M&M and Rs.2,316 Cr for Ashok Leyland.  PBT narrowed to Rs.6,058 Cr (M&M) and Rs.1,124 Cr (Ashok Leyland) post-finance costs, with equity capital at Rs.558 Cr and Rs.587 Cr respectively fueling PAT divergence.

Valuation & Market Position 

At CMP Rs.3,717 (P/E 32.5, Rs.4.62 lakh Cr m-cap), M&M trades at premium to Ashok Leyland's Rs.161 (P/E 28.3, Rs.94,487 Cr m-cap), justified by 21.6% topline momentum and diversified revenue (auto 55%, tractors 25%).

Ashok Leyland's higher PAT growth and ROCE edge signal upside from the CV cycle, while analysts are eyeing mid-teens EBITDA via exports/EVs.? 

Outlook Insights 

M&M looks at over 15% auto growth in FY26 on SUVs/EVs; Ashok Leyland taps 9% CV volumes and Switch e-buses for margin expansion. Both Mahindra & Mahindra vs Ashok Leyland are beneficiaries of the rural revival, but M&M provides stability and Ashok Leyland gives cyclical leverage. For investors, M&M is the bet for scale, Ashok Leyland for value in a 3-5% uptick in industry growth.

Key driving factors: Mahindra & Mahindra versus Ashok Leyland

While M&M benefits from diversified revenue streams and premiumization, Ashok Leyland benefits from cyclicality in commercial vehicles and operational efficiency.

Mahindra & Mahindra Growth Drivers

SUV Boom: 22% volume surge in Q2 FY26 on Scorpio-N and XUV700 demand, capturing over 30% market share amidst an urban premium shift.

Tractor Recovery: Rural revival boosted 15% sales growth; leveraged monsoons and agri-credit easing.?

EV Momentum: 'Born Electric' portfolio scales - XUV400, e-Verito- with PLI incentives; ambition to reach 10% Auto Mix by FY27.

Diversification: Tech (Tech Mahindra stake) and farm equipment provide buffers against auto cyclicality.?

Ashok Leyland Growth Drivers

MHCV Surge: 30% November sales jump on infra projects and fleet replacements, securing 28% truck market share.

Export Push: 18,000 units targeted in FY26, up 20% YoY, with focus on MENA and Africa, amid rupee depreciation edge.?

Margin Discipline: 12.1% EBITDA in Q2 FY26 via premium trucks and cost controls, aiming mid-teens FY26.

Alt-Fuel Shift: Switch Mobility e-buses-600 units in H1FY26-and LNG pilots tap green mandates.?

Risks and Challenges: Mahindra & Mahindra vs Ashok Leyland

M&M is poised to see broader exposure across SUVs, tractors, and EVs, which increases its cyclicality vulnerability, while Ashok Leyland's heavy dependence on commercial vehicles makes the company sensitive to freight/logistics fluctuations. Both Mahindra & Mahindra vs Ashok Leyland face headwinds from rising input costs and regulatory changes in 2025.?

Mahindra & Mahindra Key Risks

Tractor demand volatility: Rural slowdowns linked to monsoons and farm incomes may hurt 25% of revenues. Q2 FY26 growth will mask softening post-festive trends.

EV Transition Costs: Heavy capex on battery technology and charging infrastructure pressures margins as subsidy cuts kick in and Tata/Maruti competition bites. ?

Premium SUV Pricing Pressure: Discounts erode ASPs as rivals flood mid-SUV segment, challenging 19.4% OP margins.?

Global Trade Headwinds: Export ambitions (10% revenue) vulnerable to US/EU tariffs on Indian autos.?

Ashok Leyland Key Risks

CV Cycle Dependence: 85% of revenues from trucks/buses vulnerable to infra delays and mining slowdowns, despite 29% sales spike in Nov.

High Fleet Replacement Lag: Delayed scrappage policy keeps old vehicles on the road, thereby capping MHCV demand below 5% growth in FY26.?

Export Execution Risks: Ambitious 25,000-unit target faces currency volatility and Middle East geopolitical tensions.?

Alt-Fuel Tech Gaps: LNG/EV bus rollout lags competitors, risking market share in green mandates.

Comparative Challenges

M&M's scale brings resilience but dilutes focus, while Ashok Leyland's niche strength amplifies the downturn. Investors weigh stability against cyclical upside.?

Conclusion

Mahindra & Mahindra vs Ashok Leyland in India's Auto Boom

India's $250 billion auto sector surges with 70.7 lakh Q2 FY26 sales and EV registrations hitting 2.02 million, fueling Nifty Auto's 18% YTD gains. Mahindra & Mahindra leads the rally via diversified SUVs/tractors, as the sales grew 21.6% YoY at Rs.3,717 CMP, while Ashok Leyland leverages CV momentum-29% in November sales at Rs.161 CMP on festive tailwinds.?

M&M provides scale and stability while guiding for 15% growth in FY26E, whereas Ashok Leyland provides cyclical upside through exports and alt-fuels driven by a 23.6% PAT increase. Both have commodity and regulatory risks. Balance M&M's premium valuation with Leyland's value play on 3-5% industry growth. Invest through Enrich Money for easy access to these opportunities.

Frequently Asked Questions

What makes the Indian auto sector so attractive in 2025?

The third-biggest industry in the world, worth $250 billion, surges in India with 70.7 lakh Q2 FY26 sales and 2.02 million EV registrations, boosted by PLI schemes and 23% export growth.?

How many units sold in Q2 FY26 in comparison of Mahindra & Mahindra vs Ashok Leyland?

M&M posted Rs.46,106 Cr revenue through SUVs/tractors, a growth of 21.6% YoY, surpassing Ashok Leyland's Rs.12,577 Cr that saw a 12.8% growth through the sale of CVs during festive demand. 

What is the current Ashok Leyland stock price today and performance?

The stock price of Ashok Leyland today stands at Rs.161, up 38% YTD, with a 23.6% PAT growth to Rs.782 Cr in Q2 FY26, driven by a 29% November MHCV sales surge.? 

Mahindra & Mahindra vs Ashok Leyland, which one has greater stability? 

M&M offers diversified stability-Rs.3,717 CMP, 20% YTD, on SUVs/ EVs/tractors; Ashok Leyland provides higher cyclical beta in CV recovery at P/E 28.3.

What is Ashok Leyland share price target 2030 amid industry outlook? 

Ashok Leyland share price target 2030 eyes premiumization/exports in Rs.20 lakh crore EV market, with mid-teens EBITDA potential versus M&M's Rise 2030 SUV dominance.

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