Bengaluru, July 3 -- Once touted as a jewel in Tech Mahindra Ltd's crown, Pininfarina S.p.A. has become a drag on the company's finances, weighed down by an expensive lawsuit, hefty severance payouts and a shrinking business as automakers increasingly bring vehicle design in-house.

Tech Mahindra's corporate guarantees for the former Ferrari design house quadrupled year-on-year to Rs.735 crore (about $80 million) in 2025-26, meaning India's fifth-largest information technology (IT) services firm would have to repay the Italian company's lenders if it failed to meet its debt obligations.

According to its annual report for FY25, Pininfarina currently has outstanding external debt of €5.9 million, and a loan of €10 million from ...