Mahindra & Mahindra Achieves 35% Renewable Energy Share and $5 Billion in Green Revenue for FY26

Mahindra & Mahindra Limited has released its FY26 Sustainability Report, highlighting a significant increase in renewable electricity usage to 35% and a 7% reduction in energy intensity. The Group reported that green-aligned revenue exceeded $5 billion, now accounting for 21% of total turnover, while standalone profit after tax rose 32% to INR 156,390 million. This progress underscores the company's "Planet Positive" strategy and its commitment to achieving carbon neutrality for Scope 1 and 2 emissions by 2040.

Mahindra & Mahindra's 19th Sustainability Report, prepared according to GRI and TCFD standards, details a major shift toward clean energy, with renewable electricity sourcing growing seven-fold over the last five years to reach a 35% share. Despite total electricity demand nearly doubling since FY21 due to business growth, the Group consumed approximately 2.8 million GJ in FY26 while successfully reducing energy intensity per unit of revenue by 7%. Beyond energy, the company reported an 8% reduction in water intensity and recycled 31% of its total water withdrawal. Waste management protocols also proved effective, diverting over 90% of waste from landfills, including 92% of non-hazardous and 68% of hazardous materials.

The report emphasizes the commercial success of sustainable initiatives, with green revenue surging from $930 million in FY21 to over $5 billion in FY26, representing a 50% compound annual growth rate. This segment, which includes electric vehicles (EVs), Mahindra Susten’s renewable projects, and Mahindra Lifespaces’ green buildings, now constitutes 21% of the Group’s total revenue. Notably, Mahindra Last Mile Mobility Ltd. surpassed 1 lakh EV sales in a single year, and the automotive division saw EV penetration reach 9.6% in its SUV portfolio by Q4FY26. Battery electric vehicles (BEVs) achieved a positive EBITDA margin of 9.1% in their first year of operations, signaling the financial viability of the transition.

To ensure long-term accountability, Mahindra has integrated climate metrics directly into corporate governance, mandating that 5–10% of key performance indicators (KPIs) for business units are linked to sustainability outcomes. The Group also invested INR 3,571 million in community development, focusing on education through Project Nanhi Kali and water conservation via Project Jal Samriddhi, which benefited nearly 54,000 farmers. Additionally, the company announced the completion of its divestment from Erkunt Sanayi Anonim Şirketi (Erkunt Foundry) as of August 6, 2026. This move aligns with a broader strategic focus on core automotive and farm equipment operations while streamlining the corporate hierarchy to support its 2040 carbon neutrality goals.