M&M Share Price Jumps 3%, Nears Record High After Strong Q2 FY26 Earnings and ₹678-Crore RBL Bank Stake Sale

Mahindra & Mahindra share price (NSE: M&M) gained 3% to ₹3,674.90 in Thursday’s intra-day trade after the company posted healthy Q2FY26 results and announced the sale of its entire stake in RBL Bank. At 12:38 PM, the stock was up 1.5% at ₹3,634, outperforming the muted Sensex. M&M is now close to its record high of ₹3,723 hit on September 9, 2025.

In the past 6 months, the stock has climbed 18%, beating both the BSE Sensex (3.6%) and the BSE Auto index (17%).

Stake Sale in RBL Bank Boosts Sentiment

M&M sold its full stake in RBL Bank for ₹678 crore, earning a 62.5% return on the investment. The auto major had bought a 3.45% stake in July 2023 for ₹417 crore. The sale added to investor confidence and supported the stock’s strong move.

Strong Q2FY26 Performance Despite Challenges

The company delivered a resilient performance in Q2FY26 despite temporary GST transition issues. Key highlights:

• SUV market share stood at 25.7%, up 390 bps YoY, keeping M&M the segment leader.
• Tractor market share was 43%, up 50 bps YoY, maintaining leadership in the farm equipment segment.

Margins Improve Across Segments

• Automotive segment EBIT margin: 9.1% (core auto margin at 10.3%, up 30 bps).
• Farm equipment margin: 19.7% (core tractor margin at 20.6%).

Also Read, Dividends and Bonus Issue This Week (November 3-7, 2025)!

Conclusion

M&M’s stock rally reflects a combination of strong quarterly earnings, better margins, rising market shares in SUVs and tractors, and a profitable exit from RBL Bank. 

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