Mahindra & Mahindra’s (M&M) Q3FY23 EBITDA margin at 13% (up 100% bps QoQ) was in line with our estimates with auto/FES EBIT margins at 6.7%/16.6%. Gross margin expanded by 50bps QoQ and the rest was led by operating leverage. FES segment ASP has increased from Rs530k-560k/unit a year back, to ~Rs590k/unit at present led by price hikes to pass on input cost inflation.