Mahindra & Mahindra Share Price in Focus; Japan Associate to Exit Farm Machinery Business by 2027

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. 

Spare Parts and Warranty Services to Continue 

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. 

Background to the Decision 

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. 

Financial Position 

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 %. 

Next Steps 

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! 

Mahindra & Mahindra Share Price Performance  

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. 

Conclusion 

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. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.