Mahindra Weighs Restructuring to Form Independent Units
ECONOMY & POLICY

Mahindra Weighs Restructuring to Form Independent Units

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.

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.

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors...To read the full article Click Here..

Next Story
Real Estate

Serene Communities, Prathima Group Invest Rs 4 billion in Hyderabad

Serene Communities by Columbia Pacific, India’s largest senior living operator, has partnered with Prathima Group to develop two senior living projects in Hyderabad, marking its entry into Telangana. The collaboration represents an investment of Rs 4 billion, combining Serene’s international expertise with Prathima’s local development experience. The first project, Serene BILVANI One, launched in Shankarpally, is Hyderabad’s first premium senior living community. Designed for independent and active ageing, it features senior-friendly architecture, barrier-free design, and wellness..

Next Story
Infrastructure Urban

India remains our most important market

Foundamental, the world’s leading venture capital platform focused on the project economy, has launched its third fund to strengthen its presence in India, APAC, and other global markets. Led by Berlin-based Managing Partners Shubhankar Bhattacharya and Patric Hellermann, Fund III aims for a final close by the end of 2025. In an exclusive interaction with CW, Bhattacharya shares insights on the fund’s mandate, India’s role in their strategy, and the opportunities they see in the construction-tech and project-based sectors. Can you briefly explain Fund III’s mandate and how In..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?