CARE reaffirms Mahindra & Mahindra's bank facilities at AAA; Stable

Mahindra & Mahindra (NSE: M&M) had its bank facilities reaffirmed by CARE Ratings at CARE AAA; Stable for long-term lines and CARE A1+ for short-term lines, it said in a filing on 04 Nov 2026. The rated amounts include ₹2,139.06 crore of short-term bank facilities.

Key highlights

• Long-term/short-term facilities: ₹10.00 crore at CARE AAA; Stable / CARE A1+
• Long-term bank facilities: ₹24.11 crore at CARE AAA; Stable
• Short-term bank facilities: ₹2,139.06 crore at CARE A1+
• Overall gearing: 0.09x on 31 Mar 2026, 0.11x previously

The rating action in numbers

All three rated lines reaffirmed, with the short-term line largest

The filing marks each of the three rated lines as reaffirmed, so no rating was changed. The short-term A1+ amount of ₹2,139.06 crore makes up 98.4% of the three rated amounts, while the long-term lines are ₹24.11 crore at CARE AAA; Stable and ₹10.00 crore at CARE AAA; Stable / CARE A1+.

The annexure splits the ₹2,139.06 crore short-term amount into a daylight overdraft credit facility of ₹1,460.25 crore, working capital limits of ₹306.36 crore and non-fund-based BG/LC of ₹372.45 crore.

Leverage and the negative rating factors

CARE puts overall gearing at 0.09x as on 31 Mar 2026, down from 0.11x, and cash and liquid investments at ₹39,364 crore at end-FY26. CARE lists gearing beyond 1.0x among its negative rating factors and says positive rating factors are not applicable.

CARE says healthy internal accruals are expected to adequately fund planned capacity expansion, including the Chakan and ₹15,000-crore Nagpur projects, and investments in subsidiaries and group companies.

Growth figures cited in the rationale

CARE states that consolidated total operating income, excluding MMFSL, rose about 26% to ₹1,76,440 crore in FY26 from ₹1,40,579 crore in FY25, while the PBILDT margin was 13.17% against 13.34% in FY25.

For Q1FY27, CARE states that total operating income and PBILDT grew 29.4% and 32.3% year-on-year, and that the company kept its leadership in the domestic tractor industry with a 44.9% market share.

What the reaffirmation means for Mahindra & Mahindra's shareholders

The reaffirmation keeps the existing ratings and the Stable outlook in place, and the filing reports no change to the rated amounts. The company also says its non-convertible debentures carry no CARE rating, so no separate rating disclosure was made for them. No later dated step is given.

Not stated: whether any rating action is pending or planned, the reason CARE reaffirmed rather than changed the ratings beyond its rationale, and any effect on M&M's borrowing costs or financing terms.