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Embraer has said that Mahindra Group will be its Indian partner for the Indian Air Force’s programme

ICICIdirect Research 28 Sep 2026 DISCLAIMER

News: According to media sources, Embraer has said that Mahindra Group will be its Indian partner for the Indian Air Force’s programme to acquire 60 Multi-Role Transport Aircraft (MTA), with Embraer offering the KC-390 Millennium. The partnership follows Embraer’s assessment of the Indian market and its earlier KC-390 demonstration in India. The programme is intended to replace ageing transport aircraft, with an option for an additional 50% aircraft, and Embraer says Mahindra will support its pursuit of the opportunity. The partnership involves 48 aircraft being manufactured domestically.

View: From Mahindra’s standpoint, the partnership provides an opportunity to deepen its role in India’s aerospace and defence ecosystem by working with an established global aircraft manufacturer on a major IAF transport-aircraft programme. Its partnership with Embraer could position Mahindra as the Indian industrial partner for the C-390, potentially giving it access to advanced aircraft manufacturing, technology and a large defence order pipeline. The partnership has a potential lifetime opportunity size of ~₹90,000 crores, as cost of one airplane comes to ~₹1500 crores. This is an approximate number and hence we shall closely monitor developments in this space

Impact: Positive

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