Credit Rating

Mahindra & Mahindra Ltd. R,SG mahindra Mahindra Towers, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 India Tel: +91 22 2490 1441 Fax: +91 22 2490 0833 www.mahindra.com Ref.: M&M/SEC/2026-27/118 7th September 2026 National Stock Exchange of India Limited BSE Limited Scrip Code: M&M Scrip Code: 500520 Dear Sir/Ma’am, Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - India Ratings Affirms Mahindra & Mahindra and its Debt Instruments at ‘IND AAA’/Stable/’IND A1+’ Regulator Size of Instrument of Date of Coupon Maturity Issue Rating assigned along Rating Description Instrument issuance Rate (%) Date (INR with Watch/Outlook Action million) Issuer rating # - - - - IND AAA/Stable Affirmed Non-convertible Refer ISIN - - - 4,750 IND AAA/Stable Affirmed debentures annexure Bank loan facilities RBI - - - 13,025 IND AAA/Stable/IND A1+ Affirmed # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. Please find enclosed a Press Release issued by India Ratings and Research Private Limited in this regard which was intimated to the Company on 7th September 2026 at 4:57 p.m. Further, as per Regulation 55 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as amended from time to time, read with SEBI Master Circular bearing reference No. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/0000000103 dated 11th July 2025 and read with SEBI Master Circular bearing reference No. SEBI/HO/DDHS-PoD-1/P/CIR/2025/117 dated 13th August 2025, please find below details in respect of Credit Rating obtained for Non-Convertible Debentures (‘NCD’) issued by the Company from India Ratings and Research Private Limited: Details of credit rating Current rating details Rating Outlook Action Verification (Stable/ (New/ Specify Name of the Date of status of Sr. Credit Rating Positive/ Upgrade/ other Date of ISIN Credit Rating Credit Credit No. Assigned Negative/ Downgr- rating Verification Agency rating Rating No ade/ Re- action Agencies Outlook) Affirm/ Other) INE101A0 India Ratings 8088 and IND 07-09- 07-09- 1 (Rs. 475 Research Stable Re-Affirm - Verified AAA/Stable 2026 2026 Crore Private NCD) Limited Kindly take the above on record. Yours sincerely, For MAHINDRA & MAHINDRA LIMITED Sailesh Kumar Daga Company Secretary FCS: 4164 Encl: as above CC: Luxembourg Stock Exchange London Stock Exchange Plc ISIN: USY541641194 Regd. Office: Gateway Building, Apollo Bunder, Mumbai 400 001, India | Tel: +91 22 6897 5500 | Fax: +91 22 22875485 | Email: group.communication@mahindramail.com | mahindra.com | CIN No. L65990MH1945PLC004558 IndiaRatings RAC & Research A Fitch Group Company Title India Ratings Affirms Mahindra & Mahindra and its Debt Instruments at ‘IND AAA’/Stable/‘IND A1+’ Brief India Ratings and Research (Ind-Ra) has affirmed the rating on Mahindra & Mahindra Limited (M&M) and its debt instruments as follows: Details of Instruments Instrument Regulator of Date of Coupon Maturity Size of Rating Assigned along Rating Description Instrument Issuance Rate Date Issue (INR with Watch/Outlook Action (%) million) Issuer rating # - - - - IND AAA/Stable Affirmed Non-convertible Refer ISIN - - - 4,750 IND AAA/Stable Affirmed debentures* annexure Bank loan RBI - - - 13,025 IND AAA/Stable/IND Affirmed facilities A1+ # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. *Details in annexure Analytical Approach Ind-Ra continues to take a fully consolidated view of M&M and its subsidiaries (excluding its financial services subsidiary – Mahindra & Mahindra Financial Services Ltd (MMFSL; ‘IND AAA’/Stable)) while arriving at the ratings, considering the moderate strategic, operational, and legal linkages among them. Detailed Rationale of the Rating Action The affirmation reflects M&M's strong market position in the key business segments, solid growth in the core automotive and tractor revenue in FY26 with a higher overall profitability, and a diversified business profile. The ratings also reflect M&M's improving market share in the utility vehicle (UV) segment, leadership position in India’s tractor industry, a strong credit profile, and superior liquidity. List of Key Rating Drivers Strengths • Strong market position in key segments • Diversified business profile • Strong credit profile • Strong revenue growth in FY26, with higher EBITDA margin • Improving market share in UV segment • Conservative financial policy; tight capital allocation but capex in focused sector continues Weaknesses • Lower margins at certain subsidiaries drag metrics Detailed Description of Key Rating Drivers IndiaRatings RAC & Research A Fitch Group Company Strong Market Position in Key Segments: M&M has maintained its leadership position in the domestic tractor market with around 44.9% share in terms of volumes in 1QFY27 (FY26: 43.6%; FY25: 43.3%), with its brands Mahindra, Swaraj, Trakstar, and OJA tractors. M&M is also among the top two players in the light commercial vehicle (LCV; below 3.5 tonne) market with around 52% share in 1QFY27 (FY26: 52.3%; FY25: 51.7%; source: Society of Indian Automobile Manufacturers). With new launches, the company held around 40% share in the organised electric three-wheeler (e-3W) market in the L5 category in FY26. In addition, with the acquisition of SML Mahindra Limited (formerly known as SML Isuzu Limited) in FY26, M&M increased its market share in the >3.5T commercial vehicle (CV) segment to around 7.8% as of 1QFY27 and plans to scale it up to 10%-12% by FY31, as per the management. Furthermore, the company’s market share in the UV segment in terms of volume continues to be in the range of 20%-21% as of 1QFY27. Diversified Business Profile: M&M has a diversified business profile including farm equipment, auto, defence, information technology, financial services, mobility services, renewable energy, logistics, real estate, hospitality, steel trading, automotive components, and maintaining parts for leading aerospace companies. However, the farm equipment and auto businesses together are the key revenue and profitability drivers. The standalone entity, which majorly derives its revenue and EBITDA from the auto and farm businesses, accounted for over 82% and 88% of the revenue and EBITDA of the consolidated entity (excluding MMFSL), respectively, in FY26. The diversified revenue stream shields the consolidated credit profile, to an extent, against demand variations in the individual business divisions. The demand drivers for the auto segment (gross domestic product growth rate, disposable income, fuel prices, level of industrial production, interest rates) are different from those for farm equipment (adequacy of rainfall, interest subvention schemes, cost of labour in rural areas). Thus, the demand cycles for the two divisions are not completely independent of each other and offer a buffer to the company’s overall profitability despite inherent cyclicality. Additionally, within these two divisions, the company has a wide range of product offerings at various price points to cater to different customer segments. Strong Credit Profile: M&M’s standalone and consolidated (excluding MMFSL) credit profile is characterised by a low financial leverage and high coverage ratios. The consolidated (excluding MMFSL) gross interest coverage (operating EBITDA/gross interest expense) was strong at 36.2x in FY26 (FY25: 27.9x; FY24: 27.7x), largely led by a higher EBITDA of INR238 billion (INR186 billion; INR147 billion) and a reduction in the overall debt (excluding MMFSL). The company was net debt negative (including corporate guarantee and lease liabilities) over FY23-FY26. Ind-Ra expects M&M’s credit metrics to remain largely at similar levels over FY27- [Showing first 8,000 characters — download PDF for full document]