Mahindra & Mahindra will sell a 51% stake in Novavayu Aerospace Limited to Brazil’s Embraer SA. The company informed stock exchanges about this deal on October 9, 2026. Mahindra Defence Systems Limited will get Rs 5,10,000 for the sale. Both firms expect to finish the transaction on or before December 1, 2026.
Mahindra & Mahindra Limited (M&M) has formally informed the stock exchanges that Brazilian aerospace manufacturer Embraer SA will acquire a 51% controlling equity stake in Novavayu Aerospace Limited (NAL), a step-down subsidiary within the Mahindra defense ecosystem.
The corporate action will result in NAL ceasing to be a wholly-owned subsidiary and transitioning into an associate company of Mahindra Defence Systems Limited (MDSL). The regulatory filing, confirms that Mahindra & Mahindra received the intimation of the Investment Agreement on October 9, 2026.
Ownership structure & corporate sequence
The transaction involves a multi-layered corporate hierarchy within Mahindra’s aerospace and defense division:
Parent entity: Mahindra & Mahindra Limited, through its wholly-owned subsidiary Mahindra Advanced Technologies Limited (MATL), holds complete ownership of Mahindra Defence Systems Limited (MDSL).
Target entity: Novavayu Aerospace Limited (NAL) was incorporated on July 29, 2026, as a wholly-owned subsidiary of MDSL.
Post-transaction status: Following the acquisition of the 51% equity stake by Embraer SA, NAL will transition from a wholly-owned subsidiary to an associate entity under MDSL.
Financial disclosures & deal terms
Because Novavayu Aerospace Limited was incorporated mid-year on July 29, 2026, the company did not exist during the financial year ended March 31, 2026. Consequently, NAL contributed no turnover, revenue, income, net worth, or profit to the consolidated financial statements of Mahindra & Mahindra Limited for that fiscal period, nor has it generated revenue or income as of the date of the disclosure.
Under the terms of the agreement executed on October 9, 2026, MDSL will receive an aggregate consideration of approximately Rs 5,10,000 for the sale of its 51% equity stake to Embraer S.A. The buyer, registered at Avenida Brigadeiro Faria Lima, São Paulo, Brazil, is an independent entity, and the transaction does not fall within the ambit of related-party transactions.
The companies expect to complete the transaction on or before December 1, 2026. The disclosure was communicated to the NSE, BSE Limited, the London Stock Exchange, and the Luxembourg Stock Exchange.