Mahindra Last Mile Mobility Limited (MLMML) is evaluating nearly doubling its manufacturing capacity, including expansion of existing facilities and a possible new plant, as the electric commercial vehicle maker prepares for its next phase of growth.
The company’s proposed initial public offering (IPO) could take 12-18 months, Suman Mishra, managing director and chief executive officer of MLMML, told Business Standard. Detailed preparations for the listing are yet to begin, with the company yet to appoint bankers or consultants.
MLMML also plans to introduce eight new products and variants over the next two years, spanning three- and four-wheelers, as it seeks to expand in cargo segments where electric vehicle penetration remains significantly lower than in passenger three-wheelers.
The company currently manufactures primarily at Zaheerabad and Haridwar and is evaluating brownfield expansion as well as a possible greenfield facility.
“Zaheerabad needs expansion, Haridwar needs expansion, and maybe we need a new facility also,” Mishra said.
No decision has been finalised on the greenfield versus brownfield options, she said, adding that creating additional capacity could take 18-24 months.
At Zaheerabad, where MLMML makes its UDO electric passenger three-wheeler, the company has an annual capacity of 160,000 units on a two-shift basis, with utilisation at around 90,000 units as of February, according to a Mahindra regulatory filing.
The expansion is being planned as electrification of the L5M category, which comprises higher-powered passenger three-wheelers, accelerates. Mishra said EV penetration in the segment has crossed 40 per cent and is approaching 50 per cent in the current quarter. She expects it to reach 75-80 per cent by FY30.
“About five years ago, it was like 2 per cent electrification. In 2021, when I came in, it was 7 per cent. And now we are at 40 per cent, and this quarter we are close to 50,” she said.
Cargo, where electrification remains substantially lower, is emerging as the company’s next focus area. Mishra pegged electrification in the L5 three-wheeler cargo category at around 20 per cent and said she expects it to reach at least 50 per cent by FY30. Electrification of four-wheeler cargo is lower, at around 13-14 per cent, she said.
The planned eight products and variants will span three- and four-wheelers, with the company focusing on higher-range and higher-payload models across the cargo segments.
“We are looking at both these categories to bring out higher-range and higher-payload products,” Mishra said.
Range remains one of the constraints on electric cargo adoption. Unlike passenger three-wheelers, cargo operators have widely differing daily requirements, making a one-size-fits-all battery difficult in a price-sensitive segment.
The expansion plans come as MLMML has crossed cumulative sales of 400,000 electric vehicles across passenger and cargo applications, becoming the first commercial EV manufacturer in India to reach the milestone, according to the company.
Its EV sales have accelerated sharply. MLMML sold 107,157 EVs in FY26, up 36.5 per cent year-on-year, crossing 100,000 annual EV sales for the first time. Overall MLMML volumes, including internal-combustion engine vehicles, stood at 136,855 units in FY26, up 25.9 per cent.
IPO preparations
Mishra said the company would want to demonstrate sustained growth and improving profitability ahead of the listing, besides adding capacity and scaling up in categories where EV penetration remains relatively low.
“You have to show continuous growth trajectory and EBITDA improvement trajectory,” she said. “We have to add capacities. We have to show growth in the other two categories.”
Detailed work on the IPO is expected to begin after the festive season. The timing of the listing would ultimately depend on “the rate of scale-up, growth and the profitability”, Mishra said.
The IPO is, however, not being driven by an immediate requirement for funds.
“We are a zero-debt company,” Mishra said, adding that MLMML was adequately funded for its requirements over the next year or two and had the option of borrowing if necessary.
MLMML has also not yet decided whether the IPO would involve a fresh issue of shares, an offer for sale by existing shareholders, or a combination of the two.
The company’s valuation has risen sharply since MLMML began commercial operations as a separate subsidiary in September 2023. International Finance Corporation committed Rs 600 crore at a valuation of up to Rs 6,020 crore in 2023, while the India-Japan Fund subsequently agreed to invest Rs 400 crore at a valuation of up to Rs 6,600 crore in 2024.
In July this year, MLMML became a unicorn after agreeing to raise around Rs 322 crore in a funding round led by Lightrock, alongside existing investors IFC and India-Japan Fund, at a post-money equity valuation of Rs 10,822 crore.
Following completion of the latest fundraise, Mahindra & Mahindra’s stake in MLMML is expected to decline to 75.79 per cent from 78.11 per cent, while MLMML will continue to be its subsidiary.
Alongside manufacturing capacity, the company is expanding its distribution and service footprint. Mishra said MLMML currently has more than 800 outlets and expects to add over 100 outlets this year.
