M&M bets beyond tractors to drive farm mechanisation

After building a record 43.6 per cent share in India’s tractor market, Mahindra & Mahindra (M&M) is increasingly looking beyond tractor sales and considering broader farm mechanisation encompassing harvesters, balers, seed drills and telematics-enabled services as its next growth driver.

- SOHINI DAS

The shift comes as the company’s farm-machinery business is growing faster than its operations in tractors, albeit from a much smaller base.

Revenues from the tractor segment in FY26 rose 32 per cent year-on-year to ₹1,354 crore, up from ₹1,024 crore in FY25 and ₹866 crore in FY24.

By comparison, M&M’s farm-equipment business in FY26 generated over ₹42,500 crore.

M&M says the next phase of growth in Indian agriculture will be driven not only by farmers buying tractors but also by a growing network of rural entrepreneurs who own machinery fleets and provide mechanisation services to small farmers on a rental basis.

“Many farmers cannot afford expensive mechanisation. Rural entrepreneurs make this equipment available on a pay per use basis,” Veejay Nakra, president (farm equipment business), M&M, told Business Standard.