SML Mahindra on Monday said it is preparing to enter the electric bus segment, with plans to roll out EV buses as the market evolves, building on a strong FY26 performance that saw it outpace the industry.
The company reported 17 per cent growth in FY26, ahead of the commercial vehicle industry’s 13 per cent expansion, with revenue rising 18 per cent to ₹2,838 crore and profit after tax increasing 31 per cent to ₹160 crore. Its credit rating was also upgraded from AA- to AA+, signalling improved financial strength post-acquisition.
Operationally, performance remains uneven across segments. Cargo vehicle volumes grew 28 per cent year-on-year to 5,412 units, but market share remains modest at around 3.6 per cent. In contrast, the bus segment continues to anchor the business, with volumes of 11,220 units and a significantly higher market share of about 16 per cent, albeit with slower growth.
Recent quarterly trends suggest some moderation. In the fourth quarter, revenue grew 16 per cent year-on-year, while profit rose just 2 per cent, indicating emerging margin pressures as the company invests in expansion.
Against this backdrop, SML Mahindra indicated a FY27 entry window for electric buses, although senior management said investments and scale-up will be aligned with demand visibility and industry readiness rather than a fixed timeline.
The EV push comes alongside progress on integration with the Mahindra Group following its acquisition of a 58.96 per cent controlling stake in SML Isuzu in August 2025 and subsequent rebranding as SML Mahindra.
“Our experience since August 2025 reaffirms our rationale for the acquisition,” said Vinod Sahay, Executive Chairman, SML Mahindra Ltd, adding that integration across financials, supply chain and organisation remains on track.
New product launches
SML Mahindra aims to become a top-three player in India’s ILCV trucks and buses segment, with a focus on higher tonnage vehicles. At the core of this strategy is improving uptime and total cost of ownership.
The company is also stepping up its product pipeline. Sahay said SML Mahindra has launched three products over the past eight months, including an advanced light commercial vehicle, a new higher power-to-weight bus platform, and air-conditioned bus variants that are gaining traction. Further rollouts will be disclosed closer to launch.
Sahay noted that electric buses currently account for less than 1 per cent of the segment, with demand largely driven by state transport undertakings, while private operators remain constrained by cost and charging infrastructure gaps.
While electrification remains a strategic priority, the company said its immediate focus is on scaling its core business, where market headroom remains significant.