Mahindra Group denies division split talks, confirms no demerger plans; M&M shares up 1%

Shares of Mahindra & Mahindra (M&M) came under the spotlight on Thursday, October 9, after the company clarified to the stock exchanges that it had no plans to demerge its auto and tractor businesses.

This comes after The Economic Times reported that the Mahindra Group was in the midst of evaluating a restructuring plan to split its core businesses, including tractors, passenger vehicles (including EVs), and trucks, into independent entities.

The company clarified in a regulatory filing that it had said 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 come across an article titled ‘M&M may drive its key units down separate paths’, dated 9th October 2025, published in the Economic Times newspaper, and a similar article has been published online, which references an ongoing review of hiving off its various divisions,” the regulatory filing said.

The report, citing sources familiar with the matter, stated that the Mahindra Group is in the early stages of discussions, with an initial review already underway to assess the feasibility of the proposed restructuring.

A senior executive close to the group reportedly told the media platforms that the focus is on becoming future-ready and making all businesses independent, adding that such a move would help unlock their full potential and drive scale.

M&M stock performance

Shares of Mahindra & Mahindra, the group’s flagship company, surged as much as 1.41% to an intra-day high of ₹3,475 apiece on Thursday. As of 2:06 pm, the stock was trading 0.74% higher at ₹3,451.8 per equity share.

The stock has soared nearly 1% over the previous five days but lost almost 7% over the month. It advanced more than 36% in six months. On a year-to-date basis, it rose about 12%.

Mahindra & Mahindra has a total market capitalisation of ₹4.28 lakh crore, as of October 9, 2025, according to data on the NSE.

Mahindra September sales

The auto manufacturer reported a 16% year-on-year (YoY) increase in overall automobile sales to 1,00,298 units in September.

In the passenger vehicles segment, the company said its utility vehicles dispatched to dealers surged 10% year-on-year to 56,233 units in the domestic market last month, as against 51,062 units in the year-ago period.

Exports witnessed a rise of 43% on-year to 4,320 units in September, as against 3,020 units a year ago, the Mumbai-based automaker said in a statement.