Motor & General Finance to Sell Delhi Property for Rs. 183 Crores, Boosting Asset Value

Motor & General Finance Limited (MGF) has announced a significant property sale agreement, marking a strategic move that could substantially impact its financial position. The company's Board of Directors has approved an agreement to sell a property in New Delhi to Haldiram Marketing Private Limited for approximately Rs. 183.00 crores, net of stamp duty.

Key Details of the Transaction

Aspect	Details
Property Location	A-30, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi
Buyer	Haldiram Marketing Private Limited
Sale Amount	Approx. Rs. 183.00 crores (net of stamp duty)
Expected Completion Date	On or before April 30, 2026
Buyer's Relation to MGF	Not part of the promoter group

Potential Impact on MGF's Financials

The sale of this property could have a significant positive impact on MGF's balance sheet. As of March 2025, the company's total assets stood at Rs. 176.90 crores. The infusion of Rs. 183.00 crores from this sale could potentially double the company's asset base, depending on the property's current book value and how the proceeds are utilized.

Current Financial Position

Financial Metric	Value (as of March 2025)
Total Assets	Rs. 176.90 crores
Fixed Assets	Rs. 50.80 crores
Current Assets	Rs. 115.20 crores
Total Equity	Rs. 79.70 crores

The sale amount of Rs. 183.00 crores is notably higher than the company's current fixed assets of Rs. 50.80 crores, suggesting that this transaction could significantly boost MGF's liquidity and potentially its market value.

Strategic Implications

This move by Motor & General Finance Limited appears to be a strategic decision to unlock value from its real estate holdings. The substantial cash inflow could provide the company with opportunities for debt reduction, reinvestment in core operations, or exploration of new business avenues.

The choice of Haldiram Marketing Private Limited as the buyer, a company not related to MGF's promoter group, indicates a transparent, arm's length transaction that could be viewed positively by shareholders and market analysts.

As the transaction is set to conclude by April 30, 2026, investors and stakeholders will be keenly watching how MGF plans to utilize this significant cash inflow to drive growth and enhance shareholder value in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.15%	-5.53%	-9.61%	-11.31%	-25.08%	+26.07%

Motor & General Finance Limited (MGF) has announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with notable changes in its investment portfolio.

Consolidated Performance

MGF reported a consolidated net profit of ₹110.63 crore for Q2 FY2026, a significant improvement from the ₹23.01 crore profit in the previous quarter. The company's revenue from operations remained relatively stable at ₹168.04 crore.

Standalone Results

On a standalone basis, however, the company faced challenges, reporting a net loss of ₹205.57 crore for the quarter, compared to a profit of ₹24.76 crore in the previous quarter.

Key Financial Highlights

Particulars (₹ in crore)	Q2 FY2026 (Consolidated)	Q2 FY2026 (Standalone)	Q1 FY2026 (Standalone)
Revenue from Operations	168.04	168.04	178.61
Net Profit/(Loss)	110.63	(205.57)	24.74
Other Income	155.52	101.22	57.72

Divestment of Associate Company

A significant development during the quarter was the sale of MGF's equity shareholding in its associate company, Jayabharat Credit Limited. This transaction was based on an independent valuation and resulted in:

A loss of ₹248.95 crore on a standalone basis
A gain of ₹54.31 crore on a consolidated basis

The company noted that the sale was executed at a price lower than the quoted market price due to the thin trading volume of Jayabharat Credit Limited's shares on the stock exchange.

Other Notable Points

Other income for the quarter included ₹42.00 crore as enhancement compensation received.
The company primarily operates in the lease/renting/sale of immovable property business.
The trading window for the company's shares remains closed until November 17, 2025.

Financial Impact

The divestment of Jayabharat Credit Limited has had a significant impact on MGF's financial results:

The standalone net loss of ₹205.57 crore can be largely attributed to the ₹248.95 crore loss from the sale.
On a consolidated basis, the transaction contributed to the improved net profit of ₹110.63 crore, reflecting a gain of ₹54.31 crore.

The contrasting effects of this divestment on standalone and consolidated results highlight the complexity of MGF's financial structure and investment strategy.

Motor & General Finance's mixed results reflect the current dynamics in the real estate and financial services sectors. The significant difference between standalone and consolidated figures underscores the impact of the company's investment decisions and market conditions on its overall financial health.