Mahindra & Mahindra Limited has entered into an agreement to sell a 51% equity stake in Novavayu Aerospace Limited to Brazil-based aerospace company Embraer S.A., marking a proposed change in the ownership structure of the newly incorporated subsidiary. The agreement was signed on 09th October, 2026.
Following completion of the transaction, Novavayu Aerospace will cease to be a wholly owned subsidiary within the Mahindra group structure and will become an associate of Mahindra Defence Systems Limited (MDSL), a step-down wholly owned subsidiary of Mahindra & Mahindra.
Novavayu Aerospace Stake Sale Expected by December 2026
The agreement provides for the transaction to be completed on or before 01st December, 2026, subject to the applicable requirements. Under the arrangement, Mahindra Defence Systems Limited is expected to receive aggregate consideration of approximately ₹5,10,000/- for the sale of its 51% equity stake.
Novavayu Aerospace was incorporated on July 29, 2026, as a wholly owned subsidiary of Mahindra Defence Systems Limited. MDSL is, in turn, wholly owned by Mahindra Advanced Technologies Limited, which is wholly owned by Mahindra & Mahindra.
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As a newly incorporated entity, Novavayu Aerospace Limited was at an early stage of its operations and had not yet begun generating revenue or income as of the disclosure date. Incorporated on July 29, 2026, Novavayu Aerospace Limited is a newly established entity and had not yet contributed to Mahindra & Mahindra’s consolidated financial results for the financial year ended March 31, 2026.
Embraer S.A. is not related to Mahindra & Mahindra’s promoter or promoter group companies. The proposed stake sale is therefore not classified as a related-party transaction.
The proposed stake sale will change Novavayu Aerospace’s ownership structure, with Embraer set to acquire a majority interest while the company becomes an associate within the Mahindra Defence Systems group structure.
