Shares of Mahindra & Mahindra were trading higher on Friday on entering into a pact with the Telangana government for its proposed expansion plans at its existing manufacturing facility at the Zaheerabad plant, ahead of the December quarter earnings.

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The stock opened on a positive note on the BSE and hit a high of Rs 1,387 during the session. The stock has gained 100 percent from its 52-week low of Rs 671.

According to a filing to the stock exchanges, the automaker said that the proposed expansion would mainly be towards setting up of manufacturing facility, including the development and production of electric three and four-wheelers pertaining to last mile mobility business at the current plant situated at Zaheerabad.

The estimated investment for the proposed expansion is expected to be about Rs 1,000 crore, which would be made over eight years.

Considering the size of the proposed investment, the project is expected to fall under the Mega Projects category under the EV (electric vehicle) Investment Policy of the Telangana government.

The automaker is also scheduled to announce its December quarter earnings on Friday.

The company is expected to post a 30 percent year-on-year jump in profit after tax (PAT) to Rs 1,762 crore in the December quarter vs Rs 1,353 crore in the year-ago period.

As per the CNBC-TV18 poll estimates, the company is expected to post strong earnings and robust volume growth in the auto and tractor segments. Total volumes may go up 32 percent YoY at 282,000 units in the December quarter of FY23 vs 214,000 units in the same quarter preceding the fiscal.

Shares of Mahindra and Mahindra were trading at Rs 1379, up 0.47 percent apiece on BSE at 10.48 am.