After Tata Motors, Is Mahindra & Mahindra Heading For Demerger? Auto Giant Says, ‘No Plan For…’

Mahindra & Mahindra: Amid rumours of separation of demerger, Mahindra Group, on Thursday, has clarified that it is not planning for a demerger of the auto and tractor businesses.

M&M shares closed 0.49% higher at Rs3,443 per share on BSE with a market capitalisation of Rs 4,28,146.98 crore on BSE on Thursday. Earlier, Economic Times had reported that Mahindra & Mahindra is weighing the separation of its core businesses, into tractors, passenger vehicles, and trucks into independent entities.

The rumours of Mahindra demerger has come days after Tata Motors demerger. Starting this month, Tata Motors' commercial vehicle division has been demerged into TML Commercial Vehicles Limited (TMCLV), passenger vehicle operations will remain under Tata Motors but named to Tata Motors Passenger Vehicles Limited.

Mahindra & Mahindra Debunks Demerger Rumour

Stressing on seeing higher potential from synergies within M&M entity, Mahindra clarified in its BSE filing that 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. The Company has complied with and continues to comply with the relevant disclosure norms under the Listing Regulations."

Earlier, ET had reported that Mahindra Group was mulling over to execute a major restructuring by separating its core businesses into independent entities. This includes tractors, passenger vehicles (including electric vehicles), and trucks. These discussions are in the early stages, with initial reviews underway to evaluate the feasibility of such a move. Currently, these businesses function as divisions under Mahindra & Mahindra (M&M), reported ET citing sources.

"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," read M&M's BSE filing released on Thursday.

The automotive and farm equipment sectors have shown robust growth over the past five years. This has bolstered Mahindra's position in SUVs and tractors. The company is strategically shifting focus towards its automotive business to reduce reliance on agriculture-related volatility.

"The logic is to have a well-diversified portfolio," ET quoted a source falimiar with the matter. However, Mahindra & Mahindra has rejected the media report calling it "speculation".

Mahindra & Mahindra Share Price Trend

The company share price has surged around 0.49% high and closed at Rs 3,443 per share. The stock has surged to Rs 3,723 apiece on 9 September, 2025, the stock dipped to its 52-week low mark of Rs 2,360.45 per share on 7 April, 2025.

The stock price valuation has declined around 6.86% in one month, the stock has given around 36.33% returns in six months and around 11.76% since the beginning of the year 2025 (YTD). The stock price valuation has jumped over 127% in two years, and around 177% in three months.