Mahindra & Mahindra Exits ₹771.69 Crore Revenue Foundry Business With Stake Sale By July 2026

Mumbai: Mahindra & Mahindra is streamlining its portfolio, opting to exit a legacy foundry business as part of a broader capital allocation strategy.

Mahindra & Mahindra Limited, through its subsidiary Mahindra Overseas Investment Company (Mauritius) Limited and its arm Erkunt Traktor, has entered into a stock purchase agreement to sell its entire 99.04 percent stake in Erkunt Sanayi Anonim Şirketi. The agreement was signed on April 10, 2026, marking a full exit from the foundry business.

Erkunt Foundry contributed Rs 821.00 crore in revenue for the year ended March 31, 2025, which stood at Rs 771.69 crore after eliminating inter-company transactions, accounting for 0.49 percent of the company’s consolidated turnover. On the balance sheet side, it contributed Rs 377.28 crore, or 0.49 percent of consolidated net worth. However, its net worth declined to nil by December 31, 2025, signaling a weakening financial position.

The transaction involves a nominal consideration of Turkish Lira 1,00,000, approximately Rs 2,13,000, following a significant capital infusion of Turkish Lira 1.2 billion, or about Rs 256 crore, by Mahindra to settle external debt and sustain operations until closure. The deal is expected to be completed by July 30, 2026. The buyers include a Turkish entity, Hisarlar Makina Sanayi ve Ticaret A.Ş., along with two individual shareholders, and are not related to the Mahindra Group.

The divestment aligns with Mahindra’s focus on capital discipline and prioritizing high-return businesses. By exiting a low-contribution and financially stressed segment, the company is reallocating resources to core areas. The move reflects a broader strategy of pruning underperforming assets while strengthening operational efficiency and long-term value creation. With this exit, Mahindra & Mahindra continues to refine its business portfolio, focusing on capital efficiency and strategic clarity as it moves away from non-core operations.

Disclaimer: This article is based solely on the contents of the company’s regulatory filing dated April 10, 2026, and does not include information from external sources or independent verification.