Mahindra Logistics Limited (MLL) has reported the appropriate utilization of proceeds from its recent rights issue, as confirmed by a monitoring agency report from CARE Ratings for the quarter ended September 30, 2025.

Rights Issue Details

MLL successfully raised ₹749.27 crore through a rights issue conducted from July 31 to August 14, 2025. The company allocated the funds as follows:

Utilization of Funds

As of the reporting date, MLL has fully utilized ₹559.80 crore of the total proceeds:

The debt repayments were distributed across Mahindra Logistics and its subsidiaries:

• Mahindra Logistics Limited: ₹290.42 crore (including ₹150.00 crore towards an inter-corporate deposit from Mahindra & Mahindra Limited)
• MLL Express Services Private Limited: ₹263.86 crore (including ₹100.00 crore towards an inter-corporate deposit from Mahindra & Mahindra Limited)
• V-Link Freight Services Private Limited: ₹2.02 crore

Remaining Funds

The remaining ₹189.47 crore has been deployed as follows:

• ₹186.77 crore in fixed deposits with Kotak Mahindra Bank, earning 6.25% returns
• ₹2.70 crore in the allotment account

Monitoring Agency Report

CARE Ratings, acting as the monitoring agency, reported no deviations from the stated objectives of the rights issue. The agency confirmed that all utilization aligns with the rights issue objects as outlined in the offer document.

Corporate Actions

In addition to the rights issue, MLL has taken the following corporate actions:

1. Acquired 26,38,60,000 equity shares (₹10 each) of MLL Express Services Private Limited for ₹263.86 crore on August 18, 2025.
2. Acquired 20,20,000 equity shares (₹10 each) of V-Link Freight Services Private Limited for ₹2.02 crore on August 18, 2025.

These strategic moves, coupled with the debt repayment, indicate MLL's focus on strengthening its financial position and expanding its operational capabilities within the logistics sector.

The company's judicious use of the rights issue proceeds, as validated by the monitoring agency report, demonstrates its commitment to financial prudence and transparency in its operations.

Mahindra Logistics Limited (MLL), a leading third-party logistics (3PL) solution provider, has announced its financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance across its standalone and consolidated operations.

Standalone Performance

On a standalone basis, MLL demonstrated resilience in a challenging market environment:

The company's standalone performance shows a positive trend, with profitable operations in both the quarter and half-year periods.

Consolidated Results

However, the consolidated results paint a different picture:

Despite robust revenue generation, MLL faced challenges at the consolidated level, reporting losses for both the quarter and half-year.

Rights Issue and Capital Allocation

In a significant move to strengthen its financial position, Mahindra Logistics successfully completed a rights issue during the quarter:

• 2,70,49,301 equity shares issued
• Price: ₹277 per share (including a premium of ₹267)
• Total funds raised: ₹749.27 crores
• Allotment date: August 18, 2025

The proceeds from the rights issue are earmarked for debt repayment and general corporate purposes, potentially improving the company's balance sheet and financial flexibility.

Dividend Distribution

MLL maintained its commitment to shareholder returns by paying a final dividend of ₹2.50 per equity share for the financial year 2025, resulting in a total outflow of ₹18.03 crores.

Segment Performance

The company's financial results reveal contrasting performances across its business segments:

1. Supply Chain Management: This segment faced headwinds, reporting a loss of ₹6.93 crores for Q2 FY2026.
2. Enterprise Mobility Services: In contrast, this segment remained profitable, contributing ₹1.56 crores to the bottom line for the same period.

Strategic Investments

MLL continued to invest in its subsidiaries during the quarter:

• Acquired 26,38,60,000 equity shares of MLL Express Services Private Limited for ₹263.86 crores.
• Purchased 20,20,000 equity shares of V-Link Freight Services Private Limited for ₹2.02 crores.

These investments align with the company's strategy to strengthen its position in the logistics sector.

Outlook

While Mahindra Logistics faces challenges in its consolidated performance, the company's standalone profitability and successful capital raise through the rights issue provide a foundation for potential future growth. The management's focus on debt repayment and strategic investments in subsidiaries suggests a long-term approach to enhancing shareholder value.

Investors and market observers will likely keep a close watch on how MLL leverages its fresh capital infusion to navigate the current market conditions and drive improvements in its consolidated performance in the coming quarters.