Mahindra & Mahindra denies demerger buzz; says no plan to hive off auto, tractor businesses

Mahindra & Mahindra Ltd (M&M) on Thursday refuted select media reports suggesting that the conglomerate was weighing a major restructuring plan involving a possible demerger of its key business divisions.

In a clarification to the stock exchanges, the company said it had noticed an article titled "M&M may drive its key units down separate paths" dated October 9, 2025, which referenced an ongoing review of hiving off its various divisions, including separate entities for tractors, passenger vehicles (PVs), and trucks. Similar reports have also appeared in other mainstream publications.

"In view of the above speculation, the company on its own considers it necessary to clarify to the Stock Exchanges that there is no plan for a demerger of the Auto and Tractor businesses," M&M said.

"The Company has clarified this in the past and maintains that it sees much greater value from synergies by keeping these businesses within the M&M entity," it added.

The automaker reiterated that it continues to comply with all relevant disclosure norms under the Listing Regulations.

M&M's clarification comes amid investor curiosity over potential corporate restructuring moves within large conglomerates. The company, a leading player in both utility vehicles and tractors, has in recent years focused on electrification and global expansion while retaining an integrated structure for its automotive and farm equipment arms.

On Thursday, shares of M&M were trading marginally higher, up 0.16 per cent at Rs 3,431.40 on BSE.