Shares of Mahindra & Mahindra (M&M) Ltd fell 1% on 28th August after touching a day’s high of Rs 3,375. This occurred despite the company announcing that its subsidiary, Mahindra Aerostructures Pvt Ltd, had secured a contract from Airbus Helicopters. They will manufacture the main fuselage of its best-selling H125 helicopter, strengthening India’s role in Airbus’s global supply chain.

Mahindra Aerostructures will manufacture the fuselage of Airbus’s H125 helicopter at its Bengaluru facility. The work is starting immediately, with the first delivery planned for 2027.

This order comes after a similar April contract for the H130 fuselage. It is part of Airbus’s increasing sourcing from India, now valued at $1.4 billion annually.

Mahindra Group CEO Anish Shah said the deal strengthens the company’s long-term partnership with Airbus. It highlights their role in developing India’s aerospace ecosystem.

The contract aligns with Airbus’s broader India strategy, which also includes final assembly lines for the H125 helicopter and the C295 military aircraft. Together, these initiatives aim to establish a comprehensive aerospace ecosystem in India. This includes design, manufacturing, assembly, maintenance, and training.

Airbus India chief Jurgen Westermeier said the agreement shows Airbus’s confidence in India as a global aerospace hub. He noted it will support the rotorcraft market as well as sectors like emergency medical services and disaster management.

The H125 is one of the world’s top-selling single-engine helicopters. It is widely used for passenger transport, law enforcement, medical evacuation, and rescue operations.

At 3:14 PM, the shares of M&M were trading 1.08% lower at Rs 3,294.90 on NSE.

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