- Mahindra is set to sell its truck and bus division to SML Mahindra for ₹525 crore, with the deal expected to close by January 31, 2027.
- SML Mahindra shares surged by 20% to ₹4,565.50 on the BSE following the announcement of the acquisition.
- M&M will continue to manufacture trucks and buses under a contract manufacturing arrangement after the transfer, ensuring continuity of supply.
- The deal is executed on a slump sale basis, transferring assets, personnel, licenses, and liabilities to SML Mahindra.
- The truck and bus division generated revenue of ₹2,989 crore in fiscal 2026, accounting for about 2% of Mahindra's total income from operations.
- The business was valued at approximately ₹481 crore on M&M's books as of March 31, 2026.
- Anish Shah, Group CEO & MD of Mahindra Group, stated that the transaction simplifies the group's commercial vehicle business structure.
- Rajesh Jejurikar, Executive Director and CEO of Mahindra & Mahindra Limited, emphasized the potential for meaningful synergies across operations and technology.
- Vinod Sahay, Executive Chairman of SML, described the acquisition as a transformative step in the evolution of SML Mahindra.
SML Mahindra is set to acquire Mahindra's truck and bus division for ₹525 crore, a deal expected to close by January 31, 2027. The transaction, executed on a slump sale basis, will transfer assets, personnel, licenses, and liabilities to SML Mahindra, as stated in an exchange filing.1235
The truck and bus division generated ₹2,989 crore in revenue during fiscal 2026, contributing about 2% to Mahindra's total income from operations. The business was valued at approximately ₹481 crore on Mahindra's books as of March 31, 2026.7
Following the announcement, SML Mahindra's shares surged 20% to ₹4,565.50 on the BSE. The acquisition is seen as a significant milestone in SML's growth journey and a strategic move for the Mahindra Group to unify its truck and bus operations.
Anish Shah, Group CEO & MD of Mahindra Group, remarked, “The transaction simplifies Mahindra Group’s commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra.”8
Rajesh Jejurikar, Executive Director and CEO of Mahindra & Mahindra Limited, added, “By combining strengths of SML and Mahindra Truck & Bus, we can drive meaningful synergies across operations, technology and customer-facing domains.”9
Vinod Sahay, Executive Chairman of SML, stated, “This acquisition is a transformative step in the evolution of SML Mahindra.” Manufacturing of Mahindra branded trucks and buses will continue under a contract manufacturing arrangement post-transfer, ensuring continuity of supply.410
“The truck and bus division generated ₹2,989 crore in revenue for fiscal 2026, contributing about 2% to Mahindra's total income. Anish Shah, Group CEO of Mahindra Group, stated that the transaction simplifies the commercial vehicle business structure by consolidating operations under SML Mahindra.”
