Mahindra Logistics Limited has demonstrated exemplary compliance in its rights issue fund utilization, receiving a clean monitoring agency report from CARE Ratings Limited for the quarter ended December 31, 2025. The comprehensive review confirms zero deviations from the stated objectives of the ₹749.27 crore rights issue completed in August 2025.

Rights Issue Overview and Compliance Status

Mahindra Logistics Limited successfully completed its rights issue during July 31, 2025, to August 14, 2025, raising ₹749.27 crore for debt repayment and general corporate purposes. CARE Ratings Limited, serving as the monitoring agency, has confirmed that all fund utilizations align perfectly with the offer document disclosures.

Fund Utilization Progress During Q3FY26

The company deployed ₹93.16 crore during Q3FY26, bringing the cumulative utilization to ₹652.96 crore since the rights issue completion. The quarterly deployment focused on strategic investments and debt optimization initiatives.

Strategic Deployment Under General Corporate Purpose

The company strategically allocated ₹90.46 crore under general corporate purpose during the reporting period. The deployment included multiple value-creating initiatives across the organization and its subsidiaries.

Key Deployment Areas:

• Investment in MLL Express Services Private Limited: ₹50.00 crore
• Inter-corporate deposit with 2X2 Logistics Private Limited: ₹7.24 crore
• Capital expenditure payments to vendors: ₹4.85 crore
• Working capital demand loan repayment: ₹28.37 crore

Monitoring Agency Assessment

CARE Ratings Limited conducted a comprehensive review using bank statements, management certificates, and CA certificates verified by Deloitte Haskins & Sells LLP dated January 22, 2026. The monitoring agency confirmed no material deviations from the offer document objectives and no unfavorable events affecting project viability.

Unutilized Proceeds Management

The company maintains ₹96.31 crore in unutilized proceeds, primarily from the general corporate purpose allocation. These funds are strategically invested in fixed deposits with Kotak Mahindra Bank, earning 6.25% quarterly returns with maturity on August 28, 2026.

Investment Details:

• Fixed deposit amount: ₹98.70 crore
• Interest earned: ₹2.51 crore
• Return rate: 6.25% (quarterly payout)
• Remaining balance in monitoring account: ₹0.12 crore

Implementation Timeline and Future Deployment

The company has successfully met all implementation timelines without delays. Debt repayment objectives were completed ahead of schedule by August 25, 2025, against the March 31, 2026 target. The remaining general corporate purpose funds will be deployed through March 31, 2027, as per business requirements and board approvals.

The monitoring report reinforces Mahindra Logistics' commitment to transparent fund utilization and regulatory compliance, providing stakeholders with confidence in the company's capital allocation efficiency and strategic execution capabilities.

Mahindra Logistics Limited announced its unaudited consolidated financial results for the third quarter and nine months ended 31 December 2025, demonstrating a strong operational recovery with significant revenue growth and return to profitability in the quarter.

Financial Performance Highlights

The company delivered impressive quarterly results with consolidated revenue from operations reaching ₹1,898.03 crores in Q3FY26, representing a robust 19.05% year-on-year growth from ₹1,594.20 crores in Q3FY25. This growth momentum was supported by strong performance across both business segments.

Segment-wise Performance

The Supply Chain Management segment, the company's core business, generated revenue of ₹1,791.92 crores in Q3FY26 compared to ₹1,517.30 crores in Q3FY25, showing strong growth of 18.11%. The Enterprise Mobility Services segment also performed well with revenue of ₹110.65 crores against ₹78.09 crores in the previous year.

Nine-Month Performance

For the nine-month period ended 31 December 2025, the company reported consolidated revenue of ₹5,207.89 crores compared to ₹4,535.32 crores in the corresponding period of the previous year, marking a growth of 14.83%. Despite reporting a net loss of ₹11.79 crores for the nine-month period, this represents a significant improvement from the ₹24.71 crores loss in the previous year.

Corporate Developments

During the quarter, the company undertook several strategic initiatives. On 11 November 2025, Mahindra Logistics acquired the remaining 0.95% stake in Lords Freight (India) Private Limited, making it a wholly-owned subsidiary. The company also granted 1,70,836 Performance Stock Units under the Mahindra Logistics Employee Performance Stock Unit Plan 2025.

Impact of New Labour Codes

The company recognized an exceptional charge of ₹7.36 crores in the consolidated results due to the implementation of new Labour Codes notified by the Government of India on 21 November 2025. These codes consolidate 29 existing labour laws and have resulted in incremental impact on retirement benefits.

Standalone Results

On a standalone basis, the company reported revenue of ₹1,545.30 crores for Q3FY26 compared to ₹1,326.85 crores in Q3FY25, with net profit of ₹11.40 crores against ₹11.62 crores in the previous year. The standalone nine-month revenue stood at ₹4,258.03 crores with net profit of ₹21.63 crores.