Mahindra & Mahindra Financial Services Limited reported a 4% reduction in absolute scope emissions for the financial year ended March 31, 2026, according to its Business Responsibility and Sustainability Report (BRSR). The company achieved a significant reduction in Scope 2 emissions by 12% year-on-year and Scope 3 emissions by 43% compared to the baseline values determined in FY2023. SGS India Private Limited provided reasonable assurance for the core indicators and limited assurance for the non-core indicators in the report.

Emissions and Energy

The company recorded Scope 1 emissions of 3,679.35 tCO2e and Scope 2 emissions of 11,545.23 tCO2e for FY2026. While Scope 1 emissions increased by 83% since the FY2023 baseline, the report attributes this to higher employee uptake of car reimbursements and an updated methodology. Scope 3 emissions were reported at 0.318 tCO2e per capita. The company has declared targets with the Science Based Targets Initiative (SBTi) to reduce Scope 1 and Scope 2 emissions by 50.4% and Scope 3 emissions by 58.1% per employee by FY2032.

Total energy consumption for the current financial year was 97,874.96 GJ, with 26.03% sourced from renewable energy. This represents a reduction in grid-based electricity consumption by 10% compared to the previous financial year, supported by the implementation of energy-efficient equipment and an increase in renewable energy procurement.

Financial and Operational Metrics

The company reported a turnover of ₹18,445.59 crore and a net worth of ₹24,758.70 crore for the reporting period. The paid-up capital stood at ₹277.91 crore. Mahindra Finance operates 1,348 office locations across India, serving 27 states and 7 union territories. The company does not engage in exports, contributing zero to the total turnover.

Workforce and Diversity

The total workforce comprised 27,117 employees, including 22,637 permanent employees and 4,480 other than permanent employees. Women represented 5.9% of the total employee strength, an increase from 3.7% in FY2023. The Board of Directors included 2 female members out of 10, representing 20% of the board.

Regulatory Compliance and Governance

During the financial year, the company faced monetary penalties from the Reserve Bank of India (RBI). A penalty of ₹71.30 lakh was levied for non-adherence to certain provisions in relation to the Fair Practice Code (FPC) and KYC norms in an order dated April 25, 2025. Additionally, a penalty of ₹11.50 lakh was imposed for non-adherence to provisions under FPC and Internal Ombudsman in an order dated February 27, 2026. The company stated that it has implemented corrective actions and does not expect these orders to have a material financial impact.

The Corporate Social Responsibility (CSR) Board Sub-Committee oversees the governance and strategic alignment of the company's sustainability objectives. The company has identified eight material topics aligned with Environment, Social, and Governance (ESG) pillars, including Emissions and Climate Change, Human Capital, and Business Ethics.

Mahindra & Mahindra Financial Services Limited has changed the director representing Life Insurance Corporation of India (LIC) on its Board, effective June 22, 2026. Mr. Ashwani Ghai has ceased to be a Non-Executive (Non-Independent) Director, following the nomination of a new representative by LIC. This transition ensures continued representation for LIC, which holds a significant stake in the non-banking financial company.

Board Composition Change

The Board appointed Mr. Krishna Kumar Sukumaran Nair as a Non-Executive (Non-Independent) Director representing LIC, effective June 23, 2026. This appointment was made on the recommendation of the Nomination and Remuneration Committee and is based on a nomination by LIC under Section 160 of the Companies Act 2013. The appointment is subject to the approval of the Members of the Company at the ensuing Annual General Meeting.

Consequently, Mr. Ashwani Ghai ceased to be a Director effective June 22, 2026. Mr. Ghai had been serving on the Board since June 23, 2023.

Incoming Director Profile

Mr. Krishna Kumar Sukumaran Nair is a seasoned financial services sector professional with over 36 years of managerial expertise. He superannuated from LIC on May 31, 2026, where he previously served as Executive Director – Corporate Governance and Chief Compliance Officer. His career includes leadership roles across regulatory compliance, ESG matters, information technology, and housing finance.

Shareholding Pattern

LIC holds 14,26,25,702 equity shares in the company. This constitutes 10.26% of the paid-up share capital of Mahindra & Mahindra Financial Services Limited as of March 31, 2026.