India Ratings and Research has reaffirmed Mahindra & Mahindra's (NSE:M&M) long-term issuer rating and its debt at "IND AAA/Stable/IND A1+," according to a Monday bourse filing.
The ratings agency, a unit of the larger Fitch Group, justified its rating of the Indian conglomerate by citing its healthy position in key business lines, robust core automotive and tractor revenue and profit growth, a diversified portfolio, improving utility vehicle market share, and a strong credit profile and liquidity.
Mahindra & Mahindra is expected to see a 7% to 9% rise in revenue in fiscal years 2027 and 2028, helped by growth in its automotive and farm equipment segments, the ratings firm said.
However, India Ratings flagged that certain low-margin units can weigh on overall metrics of the company and expects a turnaround in those segments to be an ongoing process through capital reallocation.
Moreover, given the comfortable access to domestic banks for funds, the ratings firm believes Mahindra & Mahindra could easily refinance or pay down its debt.