SML Mahindra zooms 48% thus far in February, hits new high; here's why

The stock price of the commercial vehicles company hit a new high of ₹5,110 in Tuesday's intra-day trade, zooming nearly 400% from its 52-week low of ₹1,030.90 touched on February 28, 2025.

SML Mahindra share price today

 

Share price of SML Mahindra (formerly SML Isuzu Limited) hit a new high of ₹5,110, soaring 5 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market. In the past two trading days, the stock price of the commercial vehicles (CV) company has rallied 9 per cent. In comparison, the BSE Sensex was down 0.27 per cent at 83,049 at 09:30 AM.

 

Meanwhile, thus far in the month of February 2026, SML Mahindra has outperformed the market by surging 48 per cent, as compared to 1 per cent rise in the BSE Sensex. Further, the stock price has zoomed nearly 400 per cent from its 52-week low of ₹1,030.90 touched on February 28, 2025.

 

 

What’s driving SML Mahindra’s stock price in February?

 

SML Mahindra is a CV OEM with a healthy market position in the school bus segment. It operates in the LCV and medium CV (MCV) segments of the automobile industry and has a product portfolio of buses, trucks (including tippers) and specific application vehicles.

 

In CY2025, Mahindra & Mahindra (M&M) acquired a controlling stake of 58.96 per cent in SML through share purchase agreements. This includes the transfer of 43.96 per cent equity from Sumitomo, Japan, and 15.00 per cent from Isuzu, Japan, making SML a subsidiary of M&M, with effect from August 1, 2025.

 

SML Mahindra in a clarification on significant movement in the price of the company’s shares said that it was not aware of any other drivers of the share price other than market forces. If any relevant information comes to the attention of the company which pertains to the share price movement, it will be informed to the Stock Exchange(s) immediately.

 

The company further said there is no pending information and/or announcement which is required to be disclosed to the Stock Exchanges and which, in the company’s opinion, may have a bearing on the price behaviour of the company’s scrip. The company reiterates that it has complied with and continues to comply with the relevant disclosure norms under the SEBI Listing Regulations, SML Mahindra said.

 

Meanwhile, SML Mahindra had reported a strong 32 per cent year-on-year (YoY) growth in total CV sales at 1,220 units in the month of January 2026. The company has sold a total of 925 CVs in January 2025.

 

For the first nine months (April to December) of the financial year 2025-26 (9MFY26), SML Mahindra reported a healthy 53.6 per cent YOY jumped in standalone net profit at ₹105.55 crore, against ₹68.72 crore in 9MFY25. Revenues from operations grew 19 per cent YoY to ₹1,940.27 crore from ₹1,627.91 crore in the same period last fiscal.  CHECK Stock Market LIVE Updates 

ICRA’s rating rationale on SML Mahindra

 

Given the significance of the bus segment to its overall business (constituting around 70 per cent of sales volumes), the company has been focusing on upgrading its product portfolio to compete more effectively in the staff sub-segment and has launched front overhang (FOH) diesel buses over the recent past.

 

The company also manufactures ambulances, whose sales picked up during the pandemic. Moreover, in the special application vehicle segment, the company manufactures a vehicle for the cold chain market, whose demand is expected to increase. 

 

In addition, SML has begun exports to African markets. Further, efforts are underway to tap additional high potential markets with rising demand for commercial vehicles. SML is also strengthening its dealership network in neighbouring countries like Nepal, Sri Lanka and Bangladesh, which is expected to improve its exports prospects. These efforts to plug portfolio gaps and expand its sales network are likely to support SML’s business growth and help maintain its market position over the medium term.

 

Meanwhile, SML’s credit profile is further expected to improve over the medium term, driven by M&M’s ownership and control. With M&M being a leading player in the automotive industry with a diversified presence, SML is likely to benefit from various operational synergies across product development, sourcing, distribution, and support functions over the medium term, which is likely to strengthen SML’s earnings trajectory, ICRA said in recent rating rationale.