Mahindra & Mahindra has officially announced the divestment of its entire stake in Turkish foundry operations through a regulatory filing to stock exchanges. The company, through its subsidiaries, has entered into a Stock Purchase Agreement to sell 99.04% shareholding in Erkunt Sanayi Anonim Şirketi (Erkunt Foundry) to Turkish buyers.

Official Transaction Announcement

On April 10, 2026, Mahindra Overseas Investment Company (Mauritius) Limited, a wholly owned subsidiary of Mahindra & Mahindra, along with Erkunt Traktör Sanayii Anonim Şirketi, entered into a Stock Purchase Agreement with Hisarlar Makina Sanayi ve Ticaret A.Ş. and its shareholders. The transaction involves the complete exit from the Turkish foundry business, aligning with the company's capital allocation framework.

Financial Impact and Consideration Structure

The transaction involves a unique consideration structure where Mahindra will receive Turkish Lira 1,00,000 (approximately ₹2.13 lakh) as direct consideration. However, the company will infuse Turkish Lira 1.2 billion (approximately ₹256 crores) into Erkunt Foundry before the transaction closure to extinguish external debt and fund business operations until completion.

Strategic Portfolio Rationalization

This divestment represents a strategic exit from the foundry business as part of Mahindra & Mahindra's broader capital allocation framework. The transaction will result in Erkunt Foundry ceasing to be a step-down subsidiary of the company upon completion. The buyers are confirmed to be unrelated to Mahindra's promoter group, and the transaction does not fall under related party transaction regulations.

Regulatory Compliance and Timeline

The company has filed the requisite intimation under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The transaction is expected to complete by July 30, 2026, marking the end of Mahindra's involvement in Turkish foundry operations and allowing the company to focus resources on core automotive markets and strategic priorities.

Mahindra & Mahindra Limited has delivered a strong performance in March 2026, reporting significant growth across key operational metrics. The automotive manufacturer's latest monthly report shows robust demand across multiple vehicle categories, particularly in the utility vehicles segment.

Overall Performance Highlights

The company achieved impressive growth across its core business metrics for March 2026:

Utility Vehicles Drive Growth

The utility vehicles segment demonstrated exceptional performance, with several models showing substantial year-over-year improvements. The Thar+Thar Roxx diesel variant led the charge with production increasing from 8,433 units to 10,523 units, while sales surged from 7,375 units to 10,212 units.

Key utility vehicle performance included:

• Bolero: Sales grew from 8,031 units to 9,788 units
• Scorpio diesel: Sales increased from 13,665 units to 14,059 units
• XUV3XO petrol: Sales rose from 5,399 units to 6,562 units
• New XUV7XO models: Launched with 6,640 units diesel and 2,773 units petrol production

Electric Vehicle Momentum

The company's electric vehicle portfolio showed strong momentum, particularly the Electric Origin SUV, which more than doubled its sales from 3,014 units in March 2025 to 6,508 units in March 2026. Production for this model also increased significantly from 2,963 units to 6,604 units.

Commercial Vehicles and Three-Wheelers

The commercial vehicles segment, which includes sales from subsidiary companies, reported total sales of 29,121 units in March 2026 compared to 26,080 units in March 2025. The three-wheeler electric passenger segment, led by the Treo model, showed remarkable growth with sales increasing from 5,705 units to 9,078 units.

Export Performance

While domestic sales showed strong growth, export performance declined by 6.6% to 4,042 units from 4,328 units in March 2025. The XUV3XO petrol variant contributed 1,595 units to exports, up from 1,198 units in the previous year, while Scorpio diesel exports increased from 124 units to 241 units.

The company noted that the figures reported have not been independently verified or audited, and final figures after audit may vary. The data includes sales from subsidiary companies Mahindra Electric Automobile Limited, Mahindra Last Mile Mobility Limited, and SML Mahindra Limited.