Mahindra & Mahindra Ltd

Dear Shareholders,

If I were to look for a single sentence that describes the world today, I would quote the American folk singer Bob Dylan and say, "The times, they are a-changing." The old order social, political, and economic has been rudely shaken, and a new one has not quite emerged. At the time of writing, the world is in a state of ux, like the great Samudra Manthan. The legend goes that the gods and the asuras united to churn the great cosmic ocean to obtain the Amrit, the nectar of eternal life. As the ocean roiled however, what initially emerged was a deadly poison so toxic that it could wipe out all of creation. Lord Shiva saved the situation by swallowing all the poison, and after that, many positive elements emerged, including Lakshmi, the goddess of prosperity, and of course, the precious Amrit. If we zoom out and adopt a broader perspective, it becomes clear that over the course of history, the world has undergone many such churnings. Mega-trends forces so powerful they reshape political, economic, and social landscapes have de ned human progress. From the industrial revolution to globalisation, from the digital age to climate change, these tectonic tested resilience, inspired innovation, and compelled businesses to evolve.

Today's turmoil is another such churning, another such mega-trend. A growing wave of protectionism is challenging decades of liberal trade order, dramatically highlighted by the Trump administration's tariffs. These measures are sparking global responses, including retaliatory tariffs, disrupted supply chains, shifting political alliances, and economic groupings. The situation remains uid. Recent US-China tariff talks and strengthened trade ties with the UK suggest a pragmatic layer to US trade policy, combining protectionism with strategic global engagement. However, there remains a strong likelihood of signi cant decoupling between the US and China.

Whatever the outcome, it is apparent that many nations will have to swallow some "poison". International trade has already slowed amidst heightened uncertainty and dampened investor con dence.

Industries reliant on global supply chains like electronics and consumer goods will bear the brunt of rising input costs. Countries deeply integrated into global trade networks must rethink dependencies and diversify sourcing. Established geopolitical alliances are being realigned, ushering in a new era of economic nationalism. Businesses worldwide will adapt by localising operations, re-engineering supply chains, and exploring alternate markets.

India, too, will face challenges. Our large trade de cit, vulnerabilities in certain sectors, increased competition among nations, and uncertainties affecting GDP aspirations are all challenges that must be met. Key industries, such as steel and aluminium, could face headwinds, and export volumes may be impacted. The challenge will be to minimise the adverse effects, akin to how Lord Shiva con ned the poison to his throat without letting it spread.

However, focusing solely on mitigation re ects a reactive mindset. Instead, we can proactively view this have as an opportunity to enable some Amrit to emerge. What if we seize this challenge as an opportunity to accelerate economic growth? Private enterprise can play a pivotal role in this transformation. China's adversarial stance may create opportunities for India to position itself as a supply chain alternative a long-term goal for Indian business. Innovation and R&D could receive renewed focus, while manufacturing could once again take centre stage. Restrictions on China and high tariffs for other competing countries could open new markets for Indian goods. The potential exists, but achieving it will require a concerted focus on manufacturing and a palpable increase in private investment. Speed and agility are essential, as countries like the Philippines and Vietnam are already touting themselves as future manufacturing hubs. We must act swiftly and strategically to secure our share of the

Amrit.

In a scenario with so many moving parts, it isdifficult to predict outcomes. However, two signi cant implications of the current manthan offer opportunities that India must leverage:

Make (Your Country) Great Again

Inspired by the US, countries are likely to adopt a more self-centred approach, raising economic nationalism to unprecedented levels. Even before these shifts, India was moving in this direction through initiatives such as PLI and Make in India. Continued government support is vital to power our transition to a manufacturing economy.

Companies can greatly bene t from aligning their strategies with national objectives. Renewable energy, defence, and digital infrastructure are becoming sunrise industries in India.

At the Mahindra Group, we say that India's horoscope and ours are closely intertwined. From producing steel for Indian industries to vehicles for Indian roads, tractors to drive the Green Revolution, and IT services to power India's growth in the 1990s and 2000s, the Mahindra Group has always aligned national interest with business interest. Our current thrusts into EVs, defence, renewable energy, and logistics continue that tradition.

Globalisation 2.0

Economic nationalism does not spell the death of globalisation but heralds its rebirth. Globalisation is evolving: US market centrality and China-centric supply chains are being replaced by multi-polar, regional collaborations.

As structural and political uncertainties diminish US dominance, alternative capital destinations are emerging. Similarly, global supply chains are diversifying away from China, creating new trade partnerships. Lower tariff barriers among regional partners may emerge, boosting free trade and reshaping international trade centres of gravity. Ironically, the US shift toward de-globalisation may lead to a new avatar of globalisation multi-polar, regional, and driven by domestic imperatives.

In such shifting sands, I believe India is well-positioned to emerge as one of the new centres of gravity. We are a stable democracy, generally regarded as a trustworthy partner, and are bolstered by a strong military that is not politicised.

The situation with our provocative neighbour is always volatile, but I am optimistic that we can demonstrate the limits to our tolerance without impeding our path to economic ascendance.

These implications offer a portal to a stronger future for India and Indian companies. But the future remains uncertain. How, then, should we at Mahindra navigate these turbulent waters?

Whether it be a country or a business, the winners will be the ones who can successfully navigate uncertainty and ambiguity the ones who are resilient. Resilience has de ned the Mahindra Group for over eight decades. From switching to diesel engines during the oil crisis to thriving through liberalisation, the 2008 nancial crash, and COVID challenges, we have adapted, transformed, and evolved. Our federated structure, symbolised by the banyan tree (depicted on the cover), is key to this resilience. Mahindra & Mahindra's core businesses auto and tractor form the trunk, while the aerial roots represent new ventures that anchor themselves independently, expanding resilience and reach.

This structure provides agility and exibility to adapt swiftly to geopolitical and economic uncertainty. Independent decision-making within each business ensures alignment with shared values while leveraging synergies across the group. Success in one branch strengthens the entire tree, while failures are ring-fenced to protect the broader ecosystem. Like the banyan tree that endures storms and thrives in diverse conditions, the Mahindra Group is poised not just to survive but to ourish, even in turbulent times. As we embrace the opportunities and challenges ahead, I am con dent that your company, as an integral part of the Mahindra Group's banyan tree, will continue to grow and navigate this Samudra Manthan successfully.