SML Mahindra Ltd(SMLMAH)

NSE: SMLMAHBSE: 505192

₹ 4,847.1-2.34%refreshed 23 Oct, 03:59 pm ISTMarket cap: ₹ 7,015 crWebsite: www.smlisuzu.comUpdated: 24 Oct 2026

About

SML Mahindra Ltd makes buses and cargo trucks in India. It has been a listed subsidiary of Mahindra & Mahindra since M&M acquired 58.96% on 1 Aug 2025. Revenue from operations was Rs 2837.92 crore in FY26. Together with Mahindra's truck and bus business, it is the 2nd biggest ILCV bus player, with a 26.6% share in Q1 FY27.^[1][2][3]

Products and brands

SML Mahindra sells buses and cargo trucks under two brands, SML and Mahindra Trucks & Buses, which were brought together under one entity after the acquisition.^[4]
Three new products launched in the eight months after the acquisition: an advanced life care support ambulance, a high power-to-weight AC bus for the Tamil Nadu maxi cab segment, and a front-overhang AC bus under the Heroi brand.^[4]
A new 3.8L 4-valve diesel and CNG engine is being developed with support from Mahindra engineering (MRV). Cross-badged products for both brands are in the pipeline.^[4]
Proposed related-party sales to Mahindra & Mahindra cover vehicles, auto components, auto parts, spare parts and consumables.^[2]

Volumes and market share

Volumes rose 10% YoY in Q1 FY27.^[3]
The combined Mahindra truck and bus business is the 2nd biggest ILCV bus player, with a 26.6% share in Q1 FY27.^[3]
Passenger vehicle (bus) volumes were 11,220 units in FY26, up 12% YoY. Market share was 16.0%, up 80 bps YoY.^[4]
Cargo vehicle volumes were 5,412 units in FY26, up 28% YoY. Market share was 3.6%, up 20 bps YoY.^[4]
FY26 volumes grew 17%, against 13% for the industry.^[3]
Total vehicle sales were 1,124 units in April-September 2026 vs 950 a year earlier, up 18%. Cargo sales rose 39% (516 vs 370) and passenger sales rose 5% (608 vs 580).^[5]

Distribution and service network

As of Q1 FY27, the combined network has 600+ touchpoints. Service networks are being integrated and sales network pilots are under way, under a two-brand strategy.^[3]

Mahindra group integration

Mahindra & Mahindra bought 58.96% (43.96% from Sumitomo, 15% from Isuzu) on 1 Aug 2025 and became promoter. The name changed from SML Isuzu Limited to SML Mahindra Limited.^[6]
M&M provides IT services, strategic sourcing of key components, capex buying and product engineering expertise to the company.^[2]
Proposed FY27 related-party transactions with M&M total up to Rs 719.51 crore (25.4% of FY26 turnover). This includes up to Rs 320 crore of unsecured ICD borrowings for working capital or capex.^[2]
SML's sourcing now follows Mahindra's indexing-based supplier contracts. Joint sourcing for ADAS compliance cuts development cost for both companies.^[4]

Pricing and input costs

Commodity cost inflation was ~1.3% in Q4 FY26, which annualises to ~3.5-3.7%.^[4]
Prices were raised by ~2-3% from 15 April 2026 to offset commodity inflation.^[4]

Acquisition and expansion plans

SML will acquire Mahindra's Truck & Bus Division (MTBD) through a slump sale for INR 525 cr, subject to working capital adjustments. Completion is expected by the end of FY27. M&M will contract-manufacture MTBD products.^[3]
Target: a combined SML and MTBD truck and bus business of INR 12,500 cr by FY31.^[3]
Targets by FY31: ILCV bus share of 20%+ (from 12% in FY26), ILCV truck share of 10-12% (from 6%), and HCV truck share of ~6%.^[3]
Phased roadmap: consolidate in FY27-29, launch a modern portfolio and alternate fuels in FY28-32, and pursue operating leverage and premium positioning in FY31-35.^[3]
An electric bus is planned for launch in FY27.^[4]
Exports have begun to African countries, including Angola, Gabon, Senegal, Guinea and Algeria (as of FY25).^[6]

Recent developments

The credit rating was upgraded from AA- to AA+ in FY26.^[3]
The board was reconstituted on 1 Aug 2025, with Vinod Kumar Sahay as Executive Chairman and Dr. Venkataraman Srinivas as ED & CEO.^[6]

Market Cap

₹7,015 Cr

High / Low

₹6,909 / 2,733

Stock P/E

47.7

Price / Book

12.5

Book Value

₹359

EPS

₹110.4

No. of Shares

1.45 Cr

ROCE

30.5%

ROE

35.4%

OPM

8.3%

Debt / Equity

0.54

Sales

₹2,838 Cr

Net Profit

₹160 Cr

Promoter holding

59.0%

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