M&M Financial Services announced its unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025. The Board of Directors approved these results at their meeting held on January 28, 2026, following recommendations from the Audit Committee.

Standalone Financial Performance

The company's standalone financial results for Q3FY26 showed mixed performance compared to the previous year. Total revenue from operations reached ₹4,753.59 crore for the quarter, representing an increase from ₹4,143.00 crore in Q3FY25.

For the nine months ended December 31, 2025, the company reported total revenue from operations of ₹13,645.63 crore compared to ₹11,778.15 crore in the corresponding period of the previous year, marking a significant growth of 15.9%.

Impact of New Labour Codes

A significant development affecting the results was the implementation of new Labour Codes. On November 21, 2025, the Government of India notified provisions of four Labour Codes that consolidate 29 existing labour laws into a unified framework.

This exceptional item was presented separately in the financial results and impacted the company's profit before tax for both the quarter and nine months ended December 31, 2025.

Consolidated Results

On a consolidated basis, the company demonstrated stronger performance. The consolidated profit after tax for Q3FY26 was ₹825.60 crore compared to ₹917.64 crore in Q3FY25. Total consolidated revenue from operations reached ₹5,449.84 crore for the quarter, up from ₹4,796.80 crore in the previous year.

Key Financial Highlights

The company's interest income, which forms the core of its revenue, showed consistent growth across both standalone and consolidated results. Standalone interest income increased to ₹4,407.12 crore in Q3FY26 from ₹3,957.16 crore in Q3FY25.

Impairment on financial instruments was a notable expense item, with the company reporting ₹469.88 crore for the quarter on a standalone basis, compared to ₹9.14 crore in the corresponding quarter of the previous year. This increase was attributed to a comprehensive review of the Expected Credit Loss (ECL) model undertaken during the quarter.

Rights Issue and Capital Structure

The company had successfully completed a rights issue during the first quarter of FY26, issuing 15,44,41,240 fully paid-up equity shares at ₹194 per share, raising ₹2,996.16 crore. This resulted in an increase in equity share capital by ₹30.89 crore and securities premium by ₹2,965.27 crore.

Regulatory Compliance and Auditor Review

The financial results were reviewed by joint statutory auditors M M Nissim & Co. LLP and M. P. Chitale & Co., who issued unmodified limited review reports. The results comply with Regulation 33, Regulation 52, and Regulation 54 read with Regulation 63(2) of the SEBI Listing Regulations.

Source: Company Filing

The International Financial Services Centres Authority (IFSCA), the financial services regulator for India's Gujarat International Finance Tech (GIFT) City, has unveiled comprehensive proposals to regulate algorithmic trading on local exchanges. The measures, detailed in a consultation paper published on Tuesday, January 20, aim to establish robust safeguards around automated trading strategies that have gained significant traction among retail investors.

Algorithmic trading, which enables investors to execute automated strategies through computer programmes, has experienced substantial growth in recent years. The popularity stems from its ability to offer faster execution speeds and reduced costs compared to traditional trading methods, making it particularly attractive to retail investors seeking efficient market participation.

Mandatory Exchange Permissions and Algorithm Audits

The proposed regulatory framework introduces several key requirements for market participants. Under the new rules, any market participant seeking to undertake algorithmic trading would need prior permission from the relevant exchange before commencing operations.

IFSCA has also proposed that exchanges conduct comprehensive audits of algorithms used by both existing and prospective participants. According to the authority, this measure is designed "to ensure that the risk control checks… are in place and that the market participant's algorithmic trading system facilitates orderly trading and market integrity."

Risk Management and Market Integrity Measures

The consultation paper outlines additional safeguards to prevent market manipulation and maintain trading stability. IFSCA proposes establishing "dummy filters" specifically for securities that lack price bands but attract significant algorithmic trading interest. This mechanism would provide an additional layer of protection for volatile securities.

The proposed framework grants exchanges flexibility to impose financial disincentives, including penalties, in cases where market participants place orders that significantly outnumber executed trades. IFSCA stated this approach would "provide sufficient deterrence against order flooding or any other form of market manipulation."

Regulatory Response to Market Evolution

These proposals represent IFSCA's proactive approach to managing the evolving landscape of algorithmic trading within GIFT City's financial ecosystem. The measures balance the need to accommodate technological advancement in trading while ensuring robust risk management and market integrity standards.

The consultation paper reflects the regulator's commitment to creating a well-supervised environment that supports innovation while protecting market participants from potential risks associated with automated trading systems. The proposed rules aim to establish clear guidelines for algorithmic trading operations while maintaining the flexibility necessary for market development.