When he failed to reach his reserve price the Aga Khan decided to race him[5] and sent him to England to be trained by Frank Butters at the Fitzroy House stable in Newmarket, Suffolk.

He was the first foal of Mah Mahal, who made little impact as a racehorse,[6] winning two unimportant contests, but was an influential broodmare, with her descendants including Migoli and Petite Etoile.

[7] Mahmoud began his career by running a race at Newmarket in the spring which was declared void after thirteen of the sixteen jockeys failed to notice a false start and completed the full course.

He finished third, beaten by two lengths and a head by Abjer and the Bossover colt, but appeared an unlucky loser, having lost a great deal of ground at the start.

After this defeat, his status as a potential Derby winner was questioned by some commentators who believed that his pedigree and performances suggested that he would struggle to stay one and a half miles.

[12] In the Free Handicap, a ranking of the year's best two-year-olds, he was rated equal second, one pound behind his stable companion Bala Hissar, the winner of the Dewhurst Stakes, who some commentators felt had been overrated.

Once in the clear, Mahmoud showed good acceleration to take the lead a furlong out but was caught in the closing strides and beaten by a short head in a "thrilling finish" by Pay Up.

Smirke held Mahmoud up towards the rear of the field in the early stages, moved him steadily forward to fifth place at Tattenham Corner and did not make his challenge until the straight.

[17] Mahmoud reappeared in the St James's Palace Stakes over one mile at Royal Ascot in which he was beaten five lengths by Rhodes Scholar, a colt who had been withdrawn from the Derby on account of the hard ground.

[19] At Newmarket two weeks later, the Derby form did receive a boost however, when Taj Akbar defeated the American Triple Crown winner Omaha in the Princess of Wales's Stakes.

He looked a likely winner early in the straight but faded in the closing stages of the mile and three quarter race and finished third behind the 20/1 outsider Boswell, beaten three and three-quarter lengths.

Mahmoud was sent to stand at Whitney's stud near Lexington, Kentucky where he sired seventy stakes winners, including First Flight, Oil Capitol, The Axe II, Cohoes, and Vulcan's Forge.