Mahindra offers one-time Esops to 14,000 staff, includes factory workers

Business Standard

3 days ago

Mahindra Group is rolling out a one-time Employee Stock Ownership Plan (Esop) for a large section of its workforce — 12,000 to 14,000 employees — including factory floor workers, according to a report by The Economic Times. The initiative spans across three of its key subsidiaries: Mahindra & Mahindra (auto and farm sectors), Mahindra Electric Automobile, and Mahindra Last Mile Mobility.
According to an internal circular seen by The Economic Times, this is the first instance where Mahindra is offering Esops to shop floor workers — a move rarely seen among Indian conglomerates. The shares will be given in the form of restricted stock units (RSUs).
Employees eligible for this stock grant must be on permanent payroll and have completed at least 12 months of service with the group as of the announcement date. The goal of the plan, according to the company, is to reward long-term contributions and align employee efforts with wealth creation, the news report said.
Mahindra & Mahindra records 24 per cent profit jump in Q1FY26
Mahindra & Mahindra on Wednesday posted a 24 per cent year-on-year increase in consolidated net profit to ₹4,083 crore, compared to ₹3,283 crore during the same period last year. The total income from operations also rose significantly to ₹45,529 crore, up from ₹37,218 crore.
The company attributed the growth to robust performance in its core auto and farm businesses, which saw a 20 per cent rise in profits. Tech Mahindra continued its focus on margin expansion, while its financial services arm recorded a 15 per cent growth in assets under management.
SUV and tractor sales maintain upward trend
The auto giant also saw impressive vehicle sales in July, with a 26 per cent year-on-year rise to 83,691 units, up from 66,444 units in the same month last year. Sales in the utility vehicle category grew 20 per cent, supported by new launches such as the XUV 3XO 'REVX' Series and the delivery of Pack Two variants for the BE 6 and XEV 9E models.
In the tractor segment, Mahindra sold 26,990 units domestically in July 2025 — a 5 per cent increase over the 25,587 units sold in July 2024. Total tractor sales, including exports, stood at 28,708 units.
Razorpay's similar Esop move
In December last year, fintech firm Razorpay offered an Esop package worth ₹1 lakh each to over 3,000 employees to mark its 10th anniversary. That initiative totalled over ₹30 crore and followed a $75 million buyback for 650 staffers announced earlier.
Razorpay, which is in the process of shifting its base from the US to India, said the Esop move was meant to ensure all employees benefited from the firm's ongoing success. CEO Harshil Mathur noted that this would help create shared value as the company scales further.