Mahindra & Mahindra (M&M) announced a major acquisition on Saturday, April 26, 2025, unveiling plans to acquire a controlling stake in commercial vehicle manufacturer SML Isuzu. 

As part of the deal, M&M will acquire 43.96% of SML’s equity from Sumitomo Corporation for ₹413 crores and 15% from Isuzu Motors Limited at a price of ₹650 per share for ₹141 crores. In addition, the company will launch an open offer to acquire up to 26% of SML’s equity from public shareholders at a price of ₹1,554.60 per share, as per SEBI’s takeover regulations.

The strategic move is expected to significantly strengthen M&M’s position in the commercial vehicles (CV) space, where it currently holds about 3% market share in the >3.5T category. With SML’s addition, M&M aims to immediately double its CV business scale and work towards achieving a 10–12% market share by FY31 and over 20% by FY36. 

The management highlighted that SML’s expertise in bus manufacturing, alternate fuel technologies, and its established supplier and distribution networks would create strong synergies with Mahindra Truck & Bus, accelerating revenue growth and improving operational efficiencies.

SML Isuzu was locked in a 10% lower circuitat ₹1,596.10 as of 1:30 pm. Mahindra & Mahindra was trading 1.38% up, at ₹2,903.80. 

M&M also announced its financial results for the fourth quarter and full year ended March 31, 2025. The company reported a consolidated revenue of ₹1,49,893 crore for FY25, an increase of 11% over the previous year. Consolidated profit after tax (PAT) rose 17% year-on-year to ₹11,269 crore.

For the March quarter (Q4FY25), M&M’s standalone revenue stood at ₹29,334 crore, up 8% year-on-year. Standalone PAT for the quarter grew 14% year-on-year to ₹2,049 crore, while EBITDA rose 9% year-on-year to ₹3,961 crore. EBITDA margin improved slightly by 10 basis points to 13.5%, supported by better product mix and operating leverage benefits.

The company’s automotive division continued to deliver strong results, with SUV volumes growing 20% year-on-year in FY25. M&M maintained its leadership in the SUV segment, holding a 23% revenue market share. The farm equipment sector also performed well, with M&M retaining a 43.3% market share in tractors, underscoring its continued dominance. In the light commercial vehicle segment (sub-3.5T), M&M extended its leadership, ending FY25 with a 51.9% market share.

Management attributed the solid performance to a disciplined capital allocation strategy, a sharp focus on high-margin, differentiated products, and efficiency gains across manufacturing and supply chains. Higher realizations per vehicle, a favorable product mix skewed towards premium offerings, and sustained cost control measures contributed to margin expansion and profit growth

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