M&M to transfer MTBD to SML Mahindra for ₹525 cr
SML Mahindra's stock shot up 20% on Wednesday after Mahindra & Mahindra (M&M) announced it's moving its entire Truck and Bus Division (MTBD) over to SML for ₹525 crore.
This is all about bringing together M&M's commercial vehicle operations under one roof, aiming to make things simpler and more efficient.
The Business Transfer Agreement is expected to be signed by August 7, 2026, with the transaction targeted for completion by January 31, 2027, if all goes smoothly with approvals.
MTBD generated ₹2,989 cr FY26
The transfer includes MTBD's assets, employees, intellectual property, and liabilities, all going to SML.
Even after the switch, M&M will keep building Mahindra-branded trucks and busses for SML through a contract manufacturing agreement.
In FY26 alone, MTBD brought in ₹2,989 crore in revenue (about 2% of M&M's consolidated operating income).
By combining their production strengths, like SML's capacity for chassis and busses with M&M's big Chakan plant, the companies hope to compete better across all types of commercial vehicles.