Archive · 10 Oct 2026
Mahindra Defence to Sell 51% of Novavayu to Embraer
Mahindra Defence Systems plans to sell most of its ownership in a company called Novavayu Aerospace to Brazil’s Embraer.
The two companies signed an agreement on October 9, 2026.
Embraer would get 51% of Novavayu, and Mahindra Defence Systems would receive about Rs 5,10,000.
The sale is expected to be completed by December 1, 2026.
Afterward, Novavayu will no longer be fully owned by Mahindra Defence Systems, but will remain an associate company.
Novavayu was created in July 2026 and had not earned revenue or income by the time of the disclosure.
The transaction was described as not being a related-party deal.
Mahindra Defence Systems Limited agreed to sell its 51% stake in Novavayu Aerospace Limited to Embraer S.A.
The agreement was executed on October 9, 2026, with completion expected on or before December 1, 2026.
Mahindra Defence Systems will receive aggregate consideration of approximately Rs 5,10,000.
After the deal, Novavayu will become an associate entity of Mahindra Defence Systems rather than its wholly owned subsidiary.
Novavayu was incorporated on July 29, 2026, and had generated no revenue or income as of the disclosure.
- Who
- Mahindra Defence Systems Limited and Embraer S.A.
- What
- Mahindra Defence Systems agreed to sell its 51% stake in Novavayu Aerospace Limited to Embraer.
- When
- The agreement was signed on October 9, 2026; completion is expected on or before December 1, 2026.
- Where
- The disclosure was communicated to the NSE, BSE Limited, the London Stock Exchange, and the Luxembourg Stock Exchange; Embraer is registered in São Paulo, Brazil.
- Why
- The articles do not state a reason for the sale.
Transaction Details
Disclosure Context
Ownership after the sale
Transaction Details
Embraer will acquire 51% of Novavayu Aerospace.
Disclosure Context
Novavayu will cease to be wholly owned by Mahindra Defence Systems and become its associate entity.
Financial contribution
Transaction Details
Novavayu contributed no turnover, revenue, income, net worth, or profit to Mahindra & Mahindra’s consolidated financial statements for the year ended March 31, 2026, because it was incorporated later.
Disclosure Context
The disclosure also states that Novavayu had generated no revenue or income as of the disclosure date.
- Seller
- Mahindra Defence Systems Limited
- Buyer
- Embraer S.A.
- Stake being sold
- 51% of Novavayu Aerospace Limited
- Consideration
- Approximately Rs 5,10,000
- Agreement date
- October 9, 2026
- Expected completion
- On or before December 1, 2026
- Novavayu incorporation
- July 29, 2026
- Transaction status
- Described as not a related-party transaction