Mahindra & Mahindra is pivoting its financial playbook toward a new generation of non-core businesses it calls “Growth Gems.” This strategy aims for a 5x increase in value over the next five to seven years (FY25–FY30), moving beyond its traditional market leadership in the Auto and Farm sectors to deliver scale and achieve clear paths to an 18% Return on Equity (RoE). These individual Scalable Growth Gems are targeted to reach a valuation of $2+ billion each by 2030.
The impact of these Growth Gems has already seen M&M’s share of market capitalization grow sevenfold between March 2020 and November 2025, reaching a market cap of Rs 56,000 crore.
Mahindra’s recent investor presentation offers a closer look at the key emerging businesses driving this strategic acceleration:
Electrifying the Last Mile
In the automotive ecosystem, Mahindra Last Mile Mobility (LMM) is central to the company’s electrification drive, aiming to dominate India’s burgeoning light electric commercial vehicle (e-CV) segment.
LMM has set a target to roll out one million EVs on the road by 2031. The strategic growth vectors focus heavily on electrification, with an aspiration to achieve 50% electrification by FY30. LMM plans for product category expansion that is expected to grow twice as fast as the industry (electric three-wheelers and four-wheelers combined) through FY30. Furthermore, the business is scaling up its delivery capacity, including establishing a new manufacturing plant in Telangana and expanding exports to over 10 markets.
LMM achieved significant EV volumes of 78,678 units in FY25, up from 16,945 in FY22.
Trucking Up the Value Chain
Mahindra’s commercial vehicle (CV) strategy, significantly bolstered by the completion of the SML (Swaraj Mazda Limited) acquisition, is focused on gaining prominence in the Intermediate and Light Commercial Vehicle (ILCV) categories.
The goal for the combined Truck & Bus Business is to become a Top 3 player in India’s ILCV segment, alongside a focused strategy for Heavy Commercial Vehicles (HCVs). This move is strategically timed, as the Indian CV market is projected to grow from roughly Rs 1,50,000 crore in FY25 to about Rs 2,00,000 crore by FY31, spurred by infrastructure projects, e-commerce growth, and policy shifts like GST 2.0. This segment seeks a 6x growth increase.
Mahindra’s ambition relies on unlocking significant synergy benefits between its existing operations (Mahindra Truck and Bus) and SML. This involves integrating combined networks to tap into new markets, sharing platforms and aggregates across new segments, and merging R&D, sourcing, and production efforts to unlock capital for further investment. The synergy aims to create an Rs 15,000 crore business by FY31, achieving 10–12% market share overall in CVs heavier than 3.5 tons.
Away from the combustion engine, the Renewable Energy Business (Susten) is targeting massive scale with a 5x growth ambition by 2030. Susten’s aspiration is to be a leading developer and manager of high-quality renewable energy assets, particularly solar and hybrid projects.
In the realm of materials management, Mahindra Accelo is positioned as the top entity in auto recycling. This sector aligns with the broader automotive industry’s push for circular economy practices and sustainable end-of-life vehicle management.
Mahindra Logistics, a third-party logistics (3PL) provider from the Mahindra Group, is another Growth Gem. The logistics division recently achieved an important milestone by reporting its first positive gross margin quarter for its Express business, signaling profitable expansion in this critical infrastructure-enabling service.