172 Integrated Annual Report 2025-26 During the year, the Company also took decisive steps to rationalise its international portfolio by exiting certain non-core businesses, which were not delivering on the outcomes needed, or which were not going to derive strategic synergy. These include Sampo, Erkunt Foundry and the voluntary liquidation of the Mitsubishi Agricultural Machinery business. These actions reflect disciplined capital allocation and are aimed at strengthening the overall International Farm business. These measures are expected to help improve profitability over the next two years. Your Company remains committed to strategically important markets, which include the United States, Brazil and Turkey, where it has built a strong presence and meaningful market share. While FY26 saw an industry-wide slowdown impacting demand and near-term profitability, the underlying fundamentals remain robust. With a long-term perspective, the Company is well positioned to benefit from an eventual recovery, with volumes expected to rebound as market conditions improve. Allied Businesses Mahindra Powerol Mahindra Powerol has been a significant player in the power back-up industry for over 20 years. Among the Top 2 players (by volume) in the overall Power Generation market, Mahindra Powerol's network is spread over more than 1,000 service and sales touchpoints nationwide and over 12 overseas locations. The Company's distinct business model strategically balances its service and product contributions, each equally vital to its revenue generation. In addition to Telecom, Powerol has also been focusing on increasing its retail market share by HkVA range extensions. Building on its core power back-up expertise, Mahindra Powerol has diversified into lithium-ion battery energy storage solutions, achieving over 300 installations till date with continued growth, focused on small commercial applications through UPS and inverter offerings. Leveraging its network, reach and focus on Green Energy Solutions, Powerol emerged as a strong player in EV Charger services with over 50,000 home charger installations across the nation. Growing infrastructure and power needs offer significant expansion opportunities. The rising demand for power back-up solutions and infrastructure development will create opportunities in the power generation and infrastructure equipment space. This is an opportunity for the Company to grow its offerings in power solutions and construction equipment. Two-Wheeler Segment In FY26, Classic Legends Private Limited (‘CLPL’), a Growth Gem, achieved a growth of over 50%. During the year, CLPL revived the Yezdi portfolio and grew it by 3.6x by launching the Yezdi Adventure Dual headlamp and the all-new Yezdi Roadster. Both products have received a very good response, adding to Yezdi volumes. Reduction in GST from 28% to 18% for sub-350 cc motorcycles further aided growth. During the year, CLPL also expanded its global portfolio by launching the BSA Bantam and the BSA Scrambler 650. Opportunities and Threats The global business environment continues to evolve at a rapid pace, shaped by geopolitical dynamics, supply chain realignments and economic volatility. Your Company has stayed focused on building resilient operations and managing risks, while pursuing opportunities for growth. Automotive Sector In FY26, India’s PV industry grew by 7.9%, while the UV segment outperformed with an 11.0% growth. The sector enters FY27 with strong fundamentals despite elevated near-term macroeconomic and geopolitical uncertainties such as higher crude oil prices and commodity inflation. The outlook for the sector remains constructive as consumption remains the primary growth driver, supported by favourable demographics, income growth, and lower vehicle penetration. Additionally, sustained government support for manufacturing and clean mobility continue to aid the sector’s growth.
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