Mahindra & Mahindra (M&M) has revised its growth forecast for the tractor industry for the fiscal year 2027, reducing it from approximately 5 percent to nearly zero. This adjustment is due to worsening precipitation deficits, drought conditions in Maharashtra and Karnataka, and pressure on farmers' economies.
Despite this, the automaker noted that strong demand in northern markets and postponed purchasing cycles may provide some support in the coming months. The company holds a leading position in the sector with a 41.5 percent market share.
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During the second-quarter results press conference on Thursday, Executive Director and CEO (Automotive and Agricultural Sector) Rajesh Jedgejurkar stated that the drought conditions in Karnataka and Maharashtra were more severe than the company had anticipated in July, forcing a revision of its forecasts. However, weak demand is not uniform across the country. Uttar Pradesh, the largest tractor market, remains resilient, while demand in Madhya Pradesh is beginning to grow. Rajasthan is also showing acceptable results in several regions.
Jedgejurkar clarified that the revised forecast takes into account three key factors: precipitation deficit, reservoir levels, and trading conditions for farmers. The company is considering the rising costs of agricultural resources and changes in farm product prices, which could influence farmer sentiment and purchasing decisions. Furthermore, M&M believes that tractor purchases in some regions have been delayed rather than completely lost.
He added that sowing and harvesting have been delayed, and wheat sowing is also likely to be postponed. This could extend the tractor buying period beyond the usual Diwali and Bhai Dooj festive season. It is estimated that time until the third week or end of November will be needed to determine the overall demand trend. The company reserves the right to change the industry forecast up or down as additional information becomes available over the next 30–40 days.
Rajesh Jedgejurkar reported that tractor sales volumes grew by approximately 25 percent in the second half of the previous fiscal year, creating a high base for comparison. Nevertheless, M&M's own tractor volumes decreased by 6 percent year-on-year, reaching 116,027 units in the quarter from July to September, compared to 122,936 units the previous year. Despite this decline, the company maintained its leadership in the domestic tractor market.
The agricultural business reported a 6 percent decrease in consolidated revenue to 9,572 crore rupees, and profit after tax fell by 9 percent to 1,053 crore rupees.


