OPPORTUNITIES & OUTLOOK Mahindra aims to build domestic market leadership in the Automotive and Farm sectors while pursuing global opportunities. While MMFSL and TechM are undergoing their turnaround journey, the emphasis for growth gems is on scaling and unlocking potential. We are committed to cost leadership through optimisation strategies, enhancing productivity, implementing value engineering, advancing digital transformations, and harnessing group synergies. We are well-positioned to harness emerging opportunities across our future-ready portfolio. • The Indian auto industry’s long-term outlook remains promising, driven by stable macroeconomic conditions, proactive government policies, rising middle-class income, large youth population and focus on electric mobility. Key factors influencing FY26 demand are rising disposable income, tax cuts, falling inflation, cost of ownership, government spending and positive consumer sentiment. Furthermore, the government has introduced the ‘PM E-DRIVE’ scheme to expedite EV adoption and develop charging infrastructure, positioning India to become one of the largest EV markets by 2030. • The Indian tractor industry is expected to benefit from government’s budgetary focus on rural development and allied agricultural activities. Factors such as improved crop price realisation, better replacement and construction demand and indication of above-normal monsoon are likely to drive growth in domestic tractor sales. Further, the demand for mechanisation continues as shortage of agricultural labour is expected to increase labour costs. We are well-positioned to capitalize on this trend through the farm machinery division. • India’s financial services sector expansion is supported by rising income, fintech innovations, and improved financial inclusion and savings financialisation. Non-Banking Financial Companies (NBFCs) play a pivotal role in this ecosystem, with MMFSL strategically positioned to capitalize on these opportunities through its strong OEM partnerships, leadership in tractor financing, and stringent compliance and risk management practices. MMFSL is focused on diversifying its portfolio beyond vehicle financing while ensuring disciplined credit cost management. • Growing digital adoption, easing inflation, policy rate cuts and higher disposable incomes are providing a favourable macro tailwind to Growth Gems, which are poised for strong growth, supported by competitive strengths, strategic investments, and group synergies. ◦ MHRIL is poised for robust momentum growth driven by the government’s infra push, increase in travel, additional middle-income households and rising disposable incomes. The room inventory is expected to increase by 2-3 times by FY30. ◦ MLDL remains another beneficiary of positive sentiment and macroeconomic stability, with buoyant sales and demand. The residential pre-sales level is expected to increase to Rs. 10k crores by FY30, from Rs. 2.8k crores in FY25. ◦ MLL aims to triple its topline by FY30, driven by rising demand from new B2C and B2B models, tech-enabled integrated services, and government initiatives like infrastructure investment and GST reforms. With its extensive capabilities, MLL is well-positioned to seize these opportunities through flawless execution and enhanced resource utilisation. ◦ India’s solar power sector has witnessed an extraordinary increase in capacity, rising from 2.82 GW in 2014 to 100 GW in 2025. Susten is providing innovative green energy solutions and playing a pivotal role in helping the country meet its clean energy targets. It is targeting to scale its total renewable capacity from 1.5 GWp to 7.0 GWp by FY30. Integrated Annual Report 2024-25 | 32
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