Shares of commercial vehicle manufacturer SML Mahindra surged more than 8 per cent on Thursday, bucking a subdued market, after the company reported strong sales for August 2026. The stock opened 1 per cent higher at ₹5,370 and went on to hit an intraday high of ₹5,760 -- less than 4 per cent away from its previous 52-week high of ₹5,987.90, touched on July 31, 2026.
At 2:30 PM, SML Mahindra shares were trading at ₹5,797, firmly holding on to the day's gains. In contrast, the benchmark Nifty 50 was largely flat at 23,917. SML Mahindra, a subsidiary of Mahindra & Mahindra, has reported a 40 per cent rise in August sales.
The company sold a total of 1,175 vehicles in August, compared with 842 in the year-ago period. The company's Cargo vehicle sales surged by 53 per cent Y-o-Y to 492 units, the company said in a filing. The company had sold 321 Cargo vehicles in August last year.
Its Passenger vehicle sales jumped 31 per cent Y-o-Y to 683 units from 521 units in the year-ago period. In the first five months of AY27 (April to August), the company's total sales increased by 14 per cent Y-o-Y to 8,216 units. Mahindra & Mahindra had acquired a 58.96 per cent controlling stake in SML Isuzu Ltd last year and renamed it to SML Mahindra Ltd (SML).
SML Mahindra is primarily engaged in the business of the manufacture and sale of commercial vehicles and their parts. The company is looking to raise its market share in the commercial vehicle segment to 10-12 per cent by FY31, from around 7.2 per cent currently.
Earlier in July this year, its board approved the acquisition of Mahindra Truck & Bus Division (MTBD) from M&M, creating a unified truck & bus business. The transfer will be done under a Business Transfer Agreement (BTA) for a consideration of ₹525 crore.
The transaction is expected to be completed during FY2027.