Mahindra Announces MAM Withdrawal From Farm Machinery Business After Sustained Losses By FY2027
· Free Press Journal
Mumbai: Mahindra & Mahindra Ltd has informed stock exchanges that its Japan-based associate is exiting a loss-making business, while continuing spare parts and warranty support for customers.
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Associate Approves Exit
The board of Mitsubishi Mahindra Agricultural Machinery Co., Ltd. (MAM) on March 2, 2026 approved withdrawal from the agricultural machinery business. The intimation was received by Mahindra & Mahindra Ltd at 12:34 p.m. (IST) the same day. MAM will cease research and development, production, and domestic and overseas sales of agricultural machinery by the first half of fiscal year 2027.
Losses Drive Decision
MAM said it has continued to incur losses despite multiple structural measures aimed at restoring profitability. After assessing long-term viability and financial sustainability, it concluded that stably sustaining the business would be challenging. For the year ended March 31, 2025, MAM reported revenue of Rs. 2,094.17 crores and Profit After Tax of Rs. (227.42) crores.
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After eliminating intercompany transactions with the Mahindra Group, MAM contributed Rs. 1,786.03 crore, or 1.13 percent, to the consolidated turnover. Its net worth stood at Rs. (17.74) crores, contributing Rs. (11.83) crores or (0.02) percent to consolidated net worth, while adjusted loss contribution stood at Rs. (151.61) crores or (1.17) percent of consolidated profit after tax, excluding non-controlling interest.
Liquidation and Continuity
MAM will continue supplying spare parts and product warranty services for existing customers. Businesses other than the continuing operations will be dissolved and undergo ordinary liquidation procedures in accordance with applicable law. On completion of liquidation, the promoter group will not have to incur annual losses or fund them.
Mahindra & Mahindra Ltd disclosed Regulation 30 of SEBI Listing Regulations and attached detailed information as Annexure A to its March 2, 2026, communication.
Disclaimer: This article is based solely on the contents of the stock exchange filing and annexures issued by Mahindra & Mahindra Ltd dated March 2, 2026, without reference to any other sources.