M&M doubles down on precision farming, telematics with Carnot stake hike

Homegrown auto major Mahindra & Mahindra (M&M) is doubling down on its bet in precision farming and telematics.

The company on Monday (April 27) said it will acquire an additional 28.03% stake in its subsidiary Carnot Technologies Private Limited, taking its total shareholding to 80.72%.

The acquisition will be completed via a cash consideration of about ₹6.72 crore, with shares priced at ₹11,978 apiece.

In a regulatory filing, M&M said it has executed a share purchase agreement with certain promoters of Carnot to acquire 5,608 equity shares, representing 28.03% of its paid-up equity capital.

“We would like to inform you that the Company has… completed the execution of a Share Purchase Agreement… for acquisition of an additional 28.03% of the paid-up equity share capital of Carnot,” the company said.

Post the deal, M&M’s equity holding will rise from 52.69% to 80.72%, while its voting rights will increase to 89%, factoring in its existing preference shares. The transaction is expected to close by May 2026.

M&M said the move is aimed at tightening its grip on precision agriculture and connected vehicle ecosystems. “This increase in stake is in line with the Company’s belief in the long-term potential of precision farming and telematics technology,” it added.

Also read: M&M Financial Q4 Results | Net profit jumps 55% on higher NII, lending growth; declares dividend

Founded in 2015, Carnot builds connected devices and software platforms that enable performance monitoring and operational insights across vehicles and farm equipment, straddling agriculture and mobility use cases.

The company has seen revenues taper over the past three years, declining from ₹24.81 Cr in FY24 to ₹23.08 Cr in FY25 and further to ₹19.8 Cr in FY26, even as it remained profitable with a PAT of ₹1.17 Cr and a net worth of ₹6 Cr in FY26.

The acquisition underscores M&M’s push to integrate hardware, software, and data across its core businesses, with deeper control of Carnot expected to strengthen its digital capabilities across farm and mobility segments.

Shares of M&M ended today's trade 2.1% higher at ₹3,104.80 on the NSE.