Mahindra Quits Japan Farm Machinery Arm, Stock Reacts After Exit Move

Mahindra & Mahindra has said its Japan‑based associate Mitsubishi Mahindra Agricultural Machinery Co. Ltd will withdraw from the agricultural machinery business and move towards liquidation. The board of Mitsubishi Mahindra Agricultural Machinery approved the exit on March 2, 2026 and informed Mahindra & Mahindra the same day. The company will stop research and development, production, and sales of farm equipment in Japan and overseas by the first half of financial year 2026‑27. 

Mahindra & Mahindra said Mitsubishi Mahindra Agricultural Machinery will continue a separate business that supplies spare parts and provides warranty services for existing customers. Other businesses will be dissolved and taken through liquidation in line with local law. The joint venture will contact dealers and partners individually and will offer re‑employment support to staff who leave after the exit.

The decision to shut the agricultural machinery business follows years of losses at the Japan unit. Mahindra & Mahindra said Mitsubishi Mahindra Agricultural Machinery continued to post losses despite structural steps taken in the past to restore profitability. After a review of long‑term business viability, changes in demand and constraints in the production set‑up, the board concluded that it would be difficult to run the operation in a stable way in future. On completion of liquidation, Mahindra & Mahindra and its promoter group will not have to fund the annual losses of the associate.

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For the year ended 31 March 2025, Mitsubishi Mahindra Agricultural Machinery reported revenue from operations of ₹2,094.17 crore. After removing inter‑company transactions, it contributed ₹1,786.03 crore, or 1.13 per cent, to Mahindra & Mahindra’s consolidated turnover. The Japan unit’s net worth stood at negative ₹17.74 crore and its loss after tax was ₹227.42 crore as on 31 March 2025.

Mahindra & Mahindra shares moved lower after the exit announcement. On 2 March 2026, the stock traded around ₹3,334 on the NSE by late afternoon, down about 1.9 per cent for the day. Intraday fall was a little over 3 per cent at one stage after the disclosure. The stock, however, remains higher on a one‑year basis, with gains of more than 25 per cent over the past twelve months.