M&M Financial Services has announced significant updates to its insider trading policies, reported robust financial results for the second quarter, and made key changes to its senior management.

Senior Management Changes

M&M Financial Services Limited has announced important changes in its senior management:

• Ms. Aarti Nihalani has been appointed as Chief Operating Officer, effective December 1, 2025. She brings 16 years of consulting experience in financial services and is currently Partner of Financial Services for Oliver Wyman India. Ms. Nihalani holds a PG Diploma from IIM Ahmedabad and received the IIM Ahmedabad Young Alumni Achiever Award for Corporate Leadership in 2024.

• Ms. Padmaja Chunduru has been appointed as an Additional Director (Independent and Non-Executive) on the company's board, effective from November 10, 2025, for a term of 5 consecutive years until November 9, 2030, subject to shareholder approval within 3 months. Chunduru brings over 37 years of banking and capital markets experience in India and USA, having served as MD & CEO of NSDL and Indian Bank, and as Deputy Managing Director of State Bank of India. She currently serves as an Independent Director on multiple company boards including Bajaj Life and General Insurance Companies, Atul Ltd, and Brigade Enterprises Ltd.

• Mr. Shiv Kumar NV, Head of Small and Medium Enterprises, has resigned effective October 28, 2025, to pursue external opportunities.

Code of Practices Update

On October 28, M&M Financial's Board of Directors approved amendments to the company's Code of Practices and Procedure for Fair Disclosure of Unpublished Price Sensitive Information. These changes align with recent modifications to the SEBI (Prohibition of Insider Trading) Regulations, 2015, particularly addressing the revised definition of Unpublished Price Sensitive Information (UPSI) effective from June 10.

The updated code now incorporates certain 'material events' as per Regulation 30 of SEBI Listing Regulations within the UPSI definition. This marks the fourth revision of the code since its initial implementation in May 2015, reflecting the company's commitment to maintaining transparency and compliance with evolving regulatory standards.

Q2 Financial Highlights

M&M Financial has reported a strong financial performance for Q2:

The company's net profit saw a significant year-on-year growth of 54%, rising from Rs 369 crores in the previous Q2 to Rs 569 crores in the current Q2. This growth was supported by a 14% increase in total income, which reached Rs 4,489 crores.

Assets Under Management (AUM) grew by 13% to Rs 127,246 crores, indicating robust business expansion. Disbursements also showed a modest increase of 3%, totaling Rs 13,514 crores for the quarter.

Asset Quality and Capital Adequacy

M&M Financial maintained a stable asset quality profile:

• Gross Stage 3 assets stood at 3.9% as of September 30, compared to 3.8% a year ago.
• The Stage 3 coverage ratio improved to 53.0% from 51.4% in the previous quarter.

The company's capital position remained strong, with a Capital Adequacy Ratio of 19.5%, well above regulatory requirements. The Tier I capital stood at 16.9%, ensuring a solid foundation for future growth.

Management Commentary

Ramesh Iyer, Vice Chairman & Managing Director of M&M Financial Services, commented on the results: "Our Q2 performance reflects the resilience of our business model and the effectiveness of our strategic initiatives. The significant growth in net profit and the steady increase in AUM demonstrate our ability to capitalize on market opportunities while maintaining prudent risk management practices."

M&M Financial's updated insider trading code, strong financial results, and strategic management changes underscore the company's commitment to regulatory compliance and sustainable growth in the competitive financial services sector.

M&M Financial Services has announced the complete utilization of the Rs 2,996.16 crore raised through its rights issue conducted from May 22 to June 6, 2025. This development marks a significant milestone for the company in strengthening its capital base and supporting its business activities.

Utilization of Funds

According to the monitoring agency report by CARE Ratings Limited for the quarter ended September 30, 2025, the funds have been deployed as follows:

The report confirms that there has been no deviation from the stated objects of the rights issue. The company has utilized the proceeds in accordance with the Letter of Offer dated May 8, 2025, with no variations in fund utilization.

Breakdown of Fund Utilization

Long-term Capital (Rs 2,250 crore)

This significant portion of the funds has been allocated to meet the funding requirements for M&M Financial's business activities. This injection of capital is expected to strengthen the company's ability to expand its lending operations and support its growth initiatives.

General Corporate Purposes (Rs 738.17 crore)

This amount has been used for various corporate purposes, including repaying liabilities and interest payments. The flexibility of this allocation allows the company to address its immediate financial needs and optimize its balance sheet.

Issue-related Expenses (Rs 7.99 crore)

This amount covered the costs associated with the rights issue process.

Implications for Investors

The full utilization of the rights issue proceeds within the stipulated timeframe demonstrates M&M Financial's commitment to its growth strategy and efficient capital management. Investors can take confidence from the fact that the funds have been deployed as per the stated objectives, with no deviations reported by the monitoring agency.

Regulatory Compliance

The submission of the monitoring agency report complies with the regulatory requirements set by the Securities and Exchange Board of India (SEBI). This transparency in fund utilization helps maintain investor trust and adheres to good corporate governance practices.

Conclusion

The successful deployment of the Rs 2,996.16 crore raised through the rights issue positions M&M Financial Services well for its future growth plans. With a strengthened capital base, the company is better equipped to pursue its business objectives in the competitive financial services sector. Investors and stakeholders will likely keep a close watch on how this capital infusion translates into business performance and value creation in the coming quarters.