Mahindra & Mahindra has announced that Mitsubishi Mahindra Agricultural Machinery Co., Ltd. (MAM), its associate operating in Japan, will withdraw from the agricultural machinery business. The decision was approved by MAM’s board on 2 March 2026, as per an exchange filing.
The withdrawal will cover research, development, production, and sales of agricultural machinery across domestic and international markets. The company plans to complete the exit by the first half of FY2027.
Even after discontinuing core operations, MAM will continue supplying spare parts and offering warranty services for existing machinery. This arrangement is intended to support customers currently using its products.
Businesses outside this continuing scope are expected to be dissolved through standard liquidation procedures under applicable laws.
MAM has reported continued losses despite earlier structural efforts to improve performance. After reviewing long-term sustainability and business viability, the company concluded that continuing the operations would remain challenging.
Changes in demand patterns and broader industry conditions were also cited as factors influencing the decision to withdraw from the segment.
For the year ended 31 March 2025, MAM recorded revenue of ₹2,094.17 crore. After adjusting for inter-company transactions, its contribution to Mahindra Group’s consolidated turnover stood at ₹1,786.03 crore, or 1.13%.
Net worth as of the same date was negative ₹17.74 crore. After eliminations, its impact on consolidated net worth was negative ₹11.83 crore, representing 0.02 %.
Profit after tax was reported at negative ₹227.42 crore. Adjusted contribution to consolidated profit after tax stood at negative ₹151.61 crore, or 1.17 %.
The company has stated that it will proceed with dissolution of non-continuing operations in accordance with local regulations.
Employee support measures, including re-employment assistance where necessary, are expected to be provided during the transition.
Read More: RBI Imposes ₹11.5 Lakh Penalty on Mahindra & Mahindra Financial Services for Fair Practices Code Violations!
As of March 2, 2026, 3:30 pm, Mahindra and Mahindra share price closed at ₹3,324.80, a 2.14% decrease from the previous closing price.
The withdrawal process is scheduled to be completed by FY2027, while after-sales support through spare parts supply and warranty services will remain available for existing users.
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Published on: Mar 3, 2026, 9:10 AM IST
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