Mahindra & Mahindra Ltd. will transfer its Truck and Bus Division to listed subsidiary SML Mahindra Ltd. for Rs 525 crore, as the automaker reorganises its commercial vehicle business under a single entity spanning light, intermediate and heavy trucks, as well as buses.
The board of Mahindra & Mahindra approved the slump sale of the business to SML Mahindra, formerly SML Isuzu, at its meeting on Tuesday. The consideration is subject to working capital adjustments under the Business Transfer Agreement, which is expected to be signed on or before Aug. 7. The transaction is proposed to close on or before Jan. 31, 2027, subject to regulatory approvals and other conditions.
The restructuring follows Mahindra & Mahindra’s acquisition of a 58.97% stake in SML Mahindra from Sumitomo Corporation and Isuzu Motors Ltd. in August 2025, followed by a mandatory open offer. The company said the transfer is the next step in simplifying its commercial vehicle business structure by bringing truck and bus operations under one listed company.
The combined business will have a presence across light, intermediate and heavy commercial vehicles, along with buses in the above-3.5-tonne segment. Mahindra said the integration is expected to improve scale, broaden market coverage and strengthen the product portfolio while enhancing operational efficiency.
Mahindra said the Truck and Bus Division will be acquired as a going concern. Manufacturing of Mahindra-branded trucks and buses will continue to be carried out by Mahindra & Mahindra under a contract manufacturing arrangement to ensure continuity of supply and operations. The company said the combined business is expected to benefit from broader market coverage, a wider product portfolio and operational efficiencies.
“The transaction simplifies Mahindra Group’s commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra, creating a single focused entity dedicated to growth and leadership in the commercial vehicle sector,” Group Chief Executive Officer and Managing Director Anish Shah said.
The Truck and Bus Division generated total income of Rs 2,989 crore in the year ended March 31, 2026, representing about 2.02% of Mahindra & Mahindra’s total income from operations. The business was valued based on a report prepared by GT Valuation Advisors Pvt. Ltd.
Mahindra said the division would be transferred as a going concern through a slump sale. Manufacturing of Mahindra-branded trucks and buses will continue to be carried out by Mahindra & Mahindra under a contract manufacturing arrangement to maintain production and supply continuity.
The company added that the transaction qualifies as a related-party deal because SML Mahindra is its listed subsidiary, but said it would be undertaken on an arm’s-length basis. The transfer will not alter Mahindra & Mahindra’s shareholding pattern.
Shares of SML Mahindra hit the 20% upper circuit after the announcement, while Mahindra & Mahindra shares traded about 1.6% lower in afternoon trade.
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