Takeaways from Tractor Dealership, Branch, & Processing Hub Visit

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Takeaways from Tractor Dealership, Branch, & Processing Hub Visit

Mahindra and Mahindra Financial Services Limited (MMFS IN)

Equity Research

July 2, 2026

Dealership and customer profile

We visited a large Mahindra tractor dealership in Pune, located in proximity to the APMC market.

The dealership operates eight outlets covering eight of Pune’s 14 tehsils (sub-district), with the

remaining six served by other dealerships. It sells only Mahindra tractors. The dealership sells

around 45–50 tractors per month, of which nearly 40% of tractors are financed by MMFS. We also

met MMFS tractor head and sales managers at the dealership. While the sales managers are posted

at the branch, dealerships are allocated to them depending on the volume of the business.

Customers are largely from nearby villages and tehsils around Pune, where sugarcane is the•

dominant crop due to the presence of sugar factories, while wheat, tuar, and bajra are also

widely cultivated. Average landholding size is ~5 acres, with farmers typically growing 2–

3 crops annually depending on rainfall. Customers usually come to city/ mandi to sell their

produce and come to dealerships for tractor purchase.

We met two prospective tractor buyers: a) farmer who earlier depended on borrowed tractor•

considering tractor purchase and b) customer engaged in haulage activity within the city (he

had two tractors and was considering an additional tractor). Farm-linked customer indicated

decent cash flows, given good Rabi crop, but had concerns if the monsoon is well below

normal.

Key tractor financiers were MMFS, Kotak, SBI, RBL Bank, and L&T Finance. According to the•

dealer, MMFS has seen some market share gains in the area over peers like LTF. Higher trade