Mahindra & Mahindra released its 19th Sustainability Report for the financial year ended March 31, 2026, on August 7, 2026, disclosing significant progress in environmental stewardship and financial performance. The Group achieved a renewable electricity share of 35%, up from less than 10% five years ago, while reducing energy intensity per INR million turnover by 7%. This operational efficiency coincided with a 32% year-on-year increase in standalone profit after tax (PAT) to INR 156,390 million, demonstrating the alignment of sustainability goals with economic value creation.

The filing, submitted to the National Stock Exchange of India Limited and BSE Limited, outlines the Group’s "Planet Positive" strategy, which targets carbon neutrality for Scope 1 and 2 emissions by 2040. The report was externally assured by DNV Business Assurance India Private Limited and prepared in accordance with the Global Reporting Initiative (GRI) Standards 2021, the Task Force on Climate-related Financial Disclosures (TCFD), and the International Financial Reporting Standards (IFRS S1 & S2).

Key Environmental Metrics

Mahindra & Mahindra reported measurable improvements across core environmental indicators in FY26. The Group consumed approximately 2.8 million GJ of electricity, with 35% sourced from renewable sources. Water stewardship initiatives resulted in an 8% reduction in water intensity per unit revenue compared to FY25, with 31% of total water withdrawn being recycled. Waste management protocols diverted over 90% of waste from landfills, including 68% of hazardous waste and 92% of non-hazardous waste.

Growth in Green Revenue

A central theme of the report is the commercial viability of sustainable products. Green-aligned revenue surged from approximately $930 million in FY21 to over $5 billion in FY26, marking a cumulative compound annual growth rate of roughly 50%. This segment now constitutes 21% of the Group’s total cumulative revenue, up from 15% in FY25. Key contributors include electric vehicles (EVs), renewable energy projects via Mahindra Susten, and green building developments through Mahindra Lifespaces.

Mahindra Last Mile Mobility Ltd. emerged as a leader in electric commercial vehicles, surpassing 1 lakh EV sales in one financial year for the first time. The automotive sector also saw EV penetration reach 9.6% within the SUV portfolio in Q4FY26, with BEVs achieving positive EBITDA margins of 9.1% in their first year of operations.

Governance and Social Impact

The Group reinforced its governance framework by integrating climate metrics into corporate performance scorecards, mandating that 5–10% of key performance indicators (KPIs) for business units are linked to sustainability outcomes. The Board convened nine meetings during FY26, with an average attendance of 95%, reviewing quarterly ESG dashboards covering climate performance and safety indicators.

Social initiatives included Project Nanhi Kali, which supported 194,392 girls in education, and Project Kaabil, which empowered 462,704 women through livelihood training. The Group also invested INR 3,571 million in community development, focusing on water conservation through Project Jal Samriddhi, which created or rejuvenated 853 water harvesting structures benefiting nearly 54,000 farmers.

What the Numbers Show

The divergence between absolute electricity consumption and emissions intensity highlights the effectiveness of Mahindra’s decarbonization strategy. While total electricity demand nearly doubled between FY21 and FY26 due to business growth, renewable electricity sourcing increased more than seven-fold. This suggests that the Group is successfully scaling clean energy procurement faster than its operational expansion, insulating itself from fossil fuel price volatility while advancing toward its 2040 carbon neutrality target.

Mahindra & Mahindra Limited has completed the divestment of its entire stake in Erkunt Sanayi Anonim Şirketi, commonly referred to as Erkunt Foundry. The sale marks the complete exit of the company from this step-down subsidiary, which ceased to be part of the group structure effective August 6, 2026. The transaction was executed by Mahindra Overseas Investment Company (Mauritius) Limited (MOICML), a wholly owned subsidiary of Mahindra & Mahindra, in conjunction with its own wholly owned subsidiary, Erkunt Traktör Sanayii Anonim Şirketi (Erkunt Traktor).

The divestment follows earlier disclosures made by the company on April 10, 2026, and June 30, 2026. The final intimation regarding the completion of the sale was received by the company at 09:37 p.m. (IST) on August 6, 2026. Consequently, Erkunt Foundry is no longer classified as a subsidiary of MOICML or a step-down subsidiary of Mahindra & Mahindra.

Transaction Details

The key parameters of the completed divestment are outlined below:

Regulatory Compliance

Mahindra & Mahindra disclosed the completion of the transaction under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was signed by Sailesh Kumar Daga, Company Secretary of Mahindra & Mahindra Limited, and digitally timestamped on August 6, 2026, at 22:16:59 +05'30'.

The company also issued circulars to the Luxembourg Stock Exchange and the London Stock Exchange Plc to ensure global compliance with listing obligations. The ISIN for the primary listing is USY541641194.

What This Means for Investors

The removal of Erkunt Foundry from the consolidated group structure simplifies the corporate hierarchy for Mahindra & Mahindra. As Erkunt Foundry is no longer a subsidiary, its financial results will not be consolidated into Mahindra & Mahindra’s future financial statements. This divestment aligns with the company’s strategic focus on core automotive and farm equipment operations, allowing management to streamline oversight of international subsidiaries. Shareholders should note that any future performance or liabilities associated with Erkunt Foundry will not impact the parent company’s balance sheet or income statement from the date of completion onwards.