Overview

• In a stock exchange clarification on Oct. 9, Mahindra & Mahindra said there is no plan for a demerger of its auto and tractor businesses.
• The statement counters an Economic Times report, echoed by other outlets, that described preliminary feasibility work on separating tractors, passenger vehicles and trucks into independent entities.
• The company said it has previously addressed this topic and maintains it sees greater value from synergies of keeping these operations within a single entity.
• Analysts had argued a split could unlock value given the rising share of SUVs in FY25 revenue and the farm segment’s cyclicality, though no formal proposal was announced.
• Coverage likened the speculative scenario to Tata Motors’ demerger into commercial-vehicle and automotive entities, for which a record date of Oct. 14 has been set.