3M India Limited announced mixed quarterly results for Q3 FY26 ended December 31, 2025, showcasing strong revenue growth offset by significant exceptional charges that led to a quarterly loss. The diversified technology company demonstrated resilience across business segments while navigating regulatory changes and tax settlements.

Financial Performance Overview

The company delivered robust top-line growth with total income reaching Rs 1,237.50 crores in Q3 FY26, representing a 12.7% increase from Rs 1,106.78 crores in the corresponding quarter of the previous year. However, exceptional items significantly impacted profitability during the quarter.

Exceptional Items Impact Results

The company's quarterly performance was significantly affected by exceptional items totaling Rs 74.57 crores. These charges primarily stemmed from the implementation of India's new labour codes, which became effective on November 21, 2025. The incremental impact on gratuity provisions amounted to Rs 74.57 crores, arising mainly from changes in wage definitions under the consolidated labour legislation.

Additionally, 3M India recognized substantial tax expenses related to an Advance Pricing Agreement (APA) with tax authorities. The company recorded tax expense of Rs 139.47 crores and related interest of Rs 31.49 crores during the quarter, following acceptance of the final draft APA approved by the Central Board of Direct Taxes on January 6, 2026.

Nine-Month Performance Shows Growth

For the nine months ended December 31, 2025, 3M India demonstrated strong overall performance despite quarterly challenges:

Segment-Wise Performance

All business segments registered year-on-year growth in Q3 FY26, demonstrating broad-based demand across the company's diversified portfolio:

• Safety & Industrial: Rs 401.42 crores (+20.1% YoY)
• Transportation & Electronics: Rs 452.28 crores (+3.9% YoY)
• Health Care: Rs 225.64 crores (+13.5% YoY)
• Consumer: Rs 128.16 crores (+12.3% YoY)
• Others: Rs 20.56 crores (+173.6% YoY)

Leadership Transition Announced

The Board of Directors announced a planned leadership transition with Managing Director Ramesh Ramadurai retiring effective March 31, 2026, after serving the 3M Group for over 36 years, including nearly seven years as Managing Director of 3M India.

Aseem Kuldip Joshi brings extensive experience from IBM, McKinsey, Eaton, Honeywell, and most recently served as CEO, India Business, at GMM Pfaudler from 2021-2025. He holds degrees in mechanical engineering, industrial and systems engineering, and an MBA from INSEAD.

Regulatory and Tax Developments

The company successfully resolved long-standing transfer pricing disputes through the APA covering financial years 2014-15 to 2022-23. This agreement, filed originally in March 2018, provides certainty for future tax compliance while settling historical litigation matters.

The implementation of India's four consolidated Labour Codes represents a significant regulatory shift, consolidating 29 existing labour laws. 3M India has proactively assessed and disclosed the financial impact, treating it as an exceptional item due to its material and non-recurring nature.

Realty firm M3M India has announced a strategic partnership with global fashion and lifestyle brand ELIE SAAB to develop two ultra-luxury housing projects in Delhi-NCR with a total investment of ₹3,500 crore. The collaboration represents a significant expansion for both companies, with ELIE SAAB marking its entry into the Indian real estate market.

Project Overview and Investment Details

The partnership encompasses two major residential developments under the 'Signature Residences by ELIE SAAB' brand. M3M India will construct 300 premium apartments in Gurugram, while its group firm Smartworld Developers will develop approximately 650 units in Noida.

Gurugram Project Specifications

The Gurugram development will be located on Dwarka Expressway, featuring 300 premium homes across 1.30 million square feet of developable area. The project carries an investment commitment of ₹2,000 crore, with properties priced at ₹37,000 per square feet and starting prices of ₹15.00 crore.

Noida Development Details

The Noida project spans 6 acres and will accommodate around 650 units across 1.20 million square feet of total developable area. With an investment of ₹1,500 crore, the development will offer varied housing options:

Strategic Brand Partnerships

M3M India Group has been actively partnering with luxury brands to enhance its property portfolio and boost sales. The company has successfully completed a housing project in Gurugram under the Trump brand and established a partnership with Jacob & Co, a globally renowned luxury brand, for a project in Noida in October of the previous year.

ELIE SAAB Group Vice Chairman and CEO ELIE SAAB Jr highlighted the company's experience in branded residences, noting their entry into this segment in 2019 with their first project in Dubai. The group has completed more than 25 real estate projects globally and expressed optimism about the Indian market potential.

Future Expansion Plans

ELIE SAAB Jr announced plans to establish a ready-to-wear store in Delhi, with an estimated size of 3,000-4,000 square feet, though no specific timeline was provided for the store opening. M3M India promoter Pankaj Bansal confirmed the partnership during a press conference in Gurugram, emphasizing the strategic importance of the collaboration.

M3M India maintains its position as one of the leading real estate developers in North India, with an established presence in Gurugram, Noida, and Panipat.