Mahindra Bets Big on ‘Growth Gems’ to Power Next Phase of Expansion

Mahindra & Mahindra is sharpening its future growth strategy around two new business categories—Scalable Growth Gems and Emerging Growth Gems—to build the next set of billion-dollar enterprises within the group.

Speaking at the company’s Q4 FY25 earnings announcement, Anish Shah, MD & CEO of Mahindra Group, said the company is actively identifying and nurturing businesses with strong potential to deliver both scale and competitive strength in the coming years.

“These are companies with a strong strategic advantage in their industries,” Shah said. “We are now categorizing them as scalable growth gems with valuation targets of $2–3 billion, and emerging growth gems on track to reach $1 billion valuations. The goal is to move them up the curve in scale and competitiveness.”

The companies that include Scalable Growth Gems have the potential to reach a valuation of $2-3 billion: the Last Mile Mobility Business, Mahindra Trucks & Buses, Susten, Logistics, Hospitality, and Real Estate Business. Meanwhile, Emerging Growth Gems like Accelo, Aerostructures, Classic Legends, and Car&Bike are targeting a valuation of $1 billion. 

What Are Mahindra’s ‘Growth Gems’?

Scalable Growth Gems: Businesses with proven models and a competitive edge, aiming for a $2–3 billion valuation.

Emerging Growth Gems: High-potential ventures moving toward $1 billion valuation, with work underway to improve scale and competitiveness

FY25 Highlights Supporting Growth Gem Strategy

• 20% profit growth, 18% ROE, and 40% revenue jump

• Strategic categorization of businesses to guide future investment

• Pivoting of underperforming international ventures to reduce drag

• Continued focus on auto and farm as foundational cash-generating engines

This internal classification forms part of Mahindra’s broader capital allocation and growth strategy, designed to ensure the group delivers profitable returns while backing future-facing businesses with discipline. Shah said the visual framework plots businesses by scale (X-axis) and competitive position (Y-axis)—with Auto and Farm already occupying the “top-right” quadrant as high-scale, highly competitive businesses. However, Mahindra is now focusing on lifting other ventures—such as Mahindra Finance and Tech Mahindra—up the value chain. 

“They have scale but aren’t quite at the level we want them to be competitively. There’s more work to be done,” Shah said of the current state of business at Mahindra Finance and Tech Mahindra. 

In FY25, Mahindra posted 20% profit growth and maintained a stable ROE of 18%, with revenue up 40%. Shah emphasized that this solid financial base gives the group the confidence and runway to back its growth gems.

The strategy also includes disciplined exits or pivots for underperforming bets. For instance, Mahindra booked write-offs in subsidiaries like Mitsubishi and Sampo, both part of its Category B portfolio. 

These were defined earlier as businesses with strategic relevance but limited profitability. “We’ve seen the strategic benefit from them, and we are now pivoting to lower the losses going forward,” Shah explained.

Shah described the emerging gems framework as a structured approach to value creation—focusing on long-term returns, rather than just short-term profitability. “This is about building a pipeline of strong, scalable businesses that can deliver sustainable growth,” he said.