Mahindra & Mahindra Group CEO Anish Shah has announced the company's intention to list its electric three-wheeler business in 2027, marking a significant step in the automotive giant's electric mobility strategy. Speaking exclusively to CNBC-TV18 at the World Economic Forum in Davos, Shah outlined the rationale behind this strategic move and the company's broader growth plans.

Strategic IPO Plans for Electric Three-Wheeler Business

Shah explained that the electric three-wheeler arm has reached sufficient maturity to operate independently and scale effectively. The planned listing aims to unlock value while providing capital for the next phase of expansion. "We will use the funds from the electric three-wheeler business listing for growth," Shah stated, emphasizing the group's commitment to disciplined capital allocation.

Electric Mobility Growth Trajectory

The company's electric vehicle segment currently represents approximately 7% of Mahindra's overall volumes. However, Shah projects this share will gradually increase to 20-30% over time as the market evolves and infrastructure develops.

Infrastructure Challenges and Market Outlook

Despite the positive growth trajectory, Shah identified infrastructure as a critical bottleneck for electric vehicle adoption. He specifically highlighted the need for improved charging availability on highways to accelerate meaningful adoption across all vehicle segments. This infrastructure gap remains a key challenge that could impact the pace of electric mobility transformation in India.

Broader Strategic Vision and Market Positioning

At the World Economic Forum, Shah emphasized "resilience" as the dominant theme in current business discussions, reflecting how companies have navigated global challenges in recent years. The Mahindra Group's message to policymakers ahead of the Union Budget focuses on policy continuity, with Shah advocating to "stay on track" given the positive impact of recent government initiatives.

Shah also stressed India's need to accelerate its push toward becoming a global manufacturing hub, not only to capture growth opportunities but also to reduce vulnerabilities from concentrated global supply chains. He cited recent rare-earth magnet shortages as an example of unexpected supply-chain disruptions that can significantly impact manufacturing and mobility businesses.

Current Market Performance

Mahindra & Mahindra shares were trading 1.09% down at ₹3,617.70 as of 1:26 PM on the day of the announcement. Despite the intraday decline, the stock has gained 11.43% over the past six months, reflecting investor confidence in the company's strategic direction.

The planned electric three-wheeler business listing underscores Mahindra's focused approach to electric mobility as a long-term growth driver, while maintaining capital discipline amid global market volatility. This strategic move positions the company to capitalize on India's evolving electric vehicle landscape while addressing infrastructure and supply chain challenges that could impact future growth.

Source: https://www.cnbctv18.com/business/companies/davos-2026-mahindra-mahindra-plans-to-list-electric-three-wheeler-business-in-2027-anish-shah-exclusive-ws-l-19824482.htm

Prabhudas Lilladher has upgraded Tech Mahindra to 'Accumulate' from 'Hold' and set a target price of ₹1,860, citing strong operational performance and encouraging deal momentum. The brokerage has increased its valuation multiple to 21x from the earlier 19x, reflecting improved confidence in the company's growth trajectory.

Strong Quarterly Performance Drives Upgrade

Tech Mahindra delivered robust revenue growth of 1.7% quarter-on-quarter in constant currency terms, significantly exceeding Prabhudas Lilladher's estimate of 0.5%. The performance was driven by strong momentum in the Communications vertical, which grew 2.8% QoQ, along with seasonal ramp-up in the Europe automotive segment.

The growth was broad-based across most verticals, with the notable exception of BFSI, which declined 6.3% due to passing productivity benefits to clients. Importantly, growth beyond Communications was encouraging at 1.2% QoQ, marking the third consecutive quarter of growth.

Major Contract Win Strengthens Revenue Visibility

Tech Mahindra secured a significant 5-year strategic contract worth $500 million with a European telecom operator. This deal alone is expected to contribute approximately 1% to the company's topline growth. Management expressed confidence in sustaining momentum within the Communications vertical through FY27, backed by this substantial contract win.

The 9-month deal total contract value (TCV) reached $2.7 billion, representing a 44% year-on-year increase. This strong performance builds on the 42% YoY TCV growth delivered in FY25. The quarterly TCV run-rate of $800 million to $1 billion is expected to be sustained, which should be sufficient to achieve the company's aspiration of outpacing peer average topline growth.

Margin Improvement and Growth Projections

Prabhudas Lilladher believes the restructuring exercise has largely calibrated margins to a comfortable band, with the focus now shifting to executing large strategic wins. The brokerage expects cost optimization efforts to continue through project Fortius, while growth acceleration should provide operating leverage to scale margins by approximately 200 basis points year-on-year in FY27.

The brokerage has incorporated revenue growth projections of 1.0%, 5.5%, and 5.9% in constant currency year-on-year terms for FY26E, FY27E, and FY28E respectively. Margin improvements are expected to be 270 basis points, 200 basis points, and 50 basis points year-on-year for the same periods.

Investment Outlook

The upgrade to 'Accumulate' reflects Prabhudas Lilladher's positive outlook on Tech Mahindra's ability to sustain growth momentum and improve operational efficiency. The combination of strong deal wins, broad-based growth across verticals, and ongoing cost optimization initiatives positions the company well for sustained performance improvement in the coming quarters.