M&M Financial Services announced that its board has given in-principle approval to evaluate a merger proposal with its subsidiary company. The decision was made during a board meeting held on January 28, 2026, marking a significant step toward potential corporate restructuring.

Board Decision Details

The board meeting, which commenced at 2:00 p.m. (IST) and concluded at 5:05 p.m. (IST), focused on evaluating the consolidation proposal. The company has authorized its management to engage various consultants, advisors, and intermediaries to facilitate the evaluation process.

Merger Proposal Structure

The proposed consolidation involves a scheme of merger by absorption of Mahindra Rural Housing Finance Limited (MRHFL) with M&M Financial Services. MRHFL is a 98.43% owned subsidiary of the parent company, making this an internal restructuring initiative.

Regulatory Compliance and Next Steps

The announcement was made pursuant to Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The in-principle approval comes with specific conditions that must be fulfilled before proceeding.

Key Conditions:

• Further evaluation by the Committee of Independent Directors
• Review and assessment by the Audit Committee of the Board
• Necessary recommendations from both committees
• Final consideration of the consolidation plan by the Board

Future Announcements

The company has committed to making necessary announcements in accordance with SEBI Listing Regulations following the completion of further evaluation and consideration of the final consolidation plan by the board. This information has been uploaded on the company's website under investor relations and regulatory filings section.

The merger evaluation represents a strategic move toward corporate consolidation, though the final decision remains pending comprehensive committee reviews and regulatory compliance procedures.

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