Mahindra Weighs Restructuring to Form Independent Units

10 Oct 2025 CW Team

The discussions, still at a preliminary stage, aim to assess the feasibility of transforming Mahindra & Mahindra’s (M&M) core businesses into standalone divisions. Both the automotive and farm equipment segments have recorded strong growth over the past five years, cementing Mahindra’s leadership in SUVs and tractors.

“The focus is to be future-ready and make all businesses independent. That helps unlock business potential and enables scale,” a senior executive close to the development told the publication. M&M declined to comment on the report.

Analysts estimate that the automotive division accounts for nearly two-thirds of M&M’s current market capitalisation, which stands at over Rs 3.4 trillion. A potential demerger could, they said, improve capital allocation efficiency and enhance market valuation.

Between FY21 and FY25, M&M’s automotive segment share of total revenue rose from 35 per cent to 57 per cent, while its EBIT contribution climbed from 13 per cent to 42 per cent. Meanwhile, the farm equipment division’s share of revenue fell from 33 per cent to 22 per cent, and its EBIT contribution declined from 74 per cent to 27 per cent.

Over the same period, SUV sales more than doubled to 550,000 units, while tractor sales rose to 424,000 units, reflecting Mahindra’s dominance across mobility and agriculture.

The move follows Tata Motors’ recent separation of its passenger and commercial vehicle units, a restructuring viewed positively by markets. Analysts see Mahindra’s potential reorganisation as a value-creation initiative aimed at improving investor visibility, strategic flexibility, and capital discipline.

If implemented, the restructuring could allow Mahindra to unlock the full potential of its diverse operations and better position itself in India’s fast-evolving automotive and agri-equipment sectors.

The Mahindra Group is evaluating a major restructuring plan that could see its tractor, passenger vehicle (including EVs), and truck operations spun off into independent entities, according to a report by The Economic Times. The discussions, still at a preliminary stage, aim to assess the feasibility of transforming Mahindra & Mahindra’s (M&M) core businesses into standalone divisions. Both the automotive and farm equipment segments have recorded strong growth over the past five years, cementing Mahindra’s leadership in SUVs and tractors. “The focus is to be future-ready and make all businesses independent. That helps unlock business potential and enables scale,” a senior executive close to the development told the publication. M&M declined to comment on the report. Analysts estimate that the automotive division accounts for nearly two-thirds of M&M’s current market capitalisation, which stands at over Rs 3.4 trillion. A potential demerger could, they said, improve capital allocation efficiency and enhance market valuation. Between FY21 and FY25, M&M’s automotive segment share of total revenue rose from 35 per cent to 57 per cent, while its EBIT contribution climbed from 13 per cent to 42 per cent. Meanwhile, the farm equipment division’s share of revenue fell from 33 per cent to 22 per cent, and its EBIT contribution declined from 74 per cent to 27 per cent. Over the same period, SUV sales more than doubled to 550,000 units, while tractor sales rose to 424,000 units, reflecting Mahindra’s dominance across mobility and agriculture. The move follows Tata Motors’ recent separation of its passenger and commercial vehicle units, a restructuring viewed positively by markets. Analysts see Mahindra’s potential reorganisation as a value-creation initiative aimed at improving investor visibility, strategic flexibility, and capital discipline. If implemented, the restructuring could allow Mahindra to unlock the full potential of its diverse operations and better position itself in India’s fast-evolving automotive and agri-equipment sectors.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..