The agreement was finalized on April 10, 2026, with Hisarlar Makina Sanayi ve Ticaret AŞ and its shareholders, Oguzhan Sahinkaya and Bunyamin Sarioglu. The purchasing parties are not affiliated with the promoter, promoter group, or group companies of Mahindra & Mahindra.
MOICML and Erkunt Traktör will receive a consideration of Turkish lira 1,00,000, approximately ₹2,13,000 at the current exchange rate, for the sale. Before the transaction closes, MOICML will invest Turkish lira 1.2 billion, roughly ₹256 crore, at the prevailing exchange rate, to settle external debt and support the business until the deal is completed.
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The sale is expected to be completed by July 30, 2026. After completion, Erkunt Foundry will no longer be a subsidiary of Mahindra Overseas Investment Company (Mauritius) Ltd and will cease to be a step-down subsidiary of Mahindra & Mahindra.
For the fiscal year ending March 31, 2025, Erkunt Foundry reported operational revenue of ₹821 crore. After adjusting for inter-company transactions with the Mahindra Group, its contribution to consolidated turnover was ₹771.69 crore, or 0.49%.
The net worth of Erkunt Foundry was ₹382.29 crore as of March 31, 2025. After accounting for inter-company balances and adjustments with the Mahindra Group, it contributed ₹377.28 crore, or 0.49%, to the company’s consolidated net worth, excluding non-controlling interest. By December 31, 2025, Erkunt Foundry’s net worth stood at zero.
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Mahindra & Mahindra stated that exiting the foundry business aligns with its capital allocation framework. This transaction does not qualify as a related party transaction.
On April 10, shares of Mahindra and Mahindra Ltd closed at ₹3,261.80, up ₹94.50 or 2.98%, on the BSE.
