Mahindra Logistics Limited has received an ESG (Environmental, Social, and Governance) score of 63 under the 'Strong' category from ESG Risk Assessments & Insights Limited, a SEBI-registered ESG Rating Provider. The company disclosed this development to stock exchanges on 28 January 2026 in compliance with regulatory requirements.

ESG Rating Details

The rating agency communicated the ESG assessment to Mahindra Logistics on 28 January 2026 at 12:49 p.m. (IST). The evaluation was conducted independently by the rating agency without any engagement from the company.

Independent Assessment Process

Mahindra Logistics emphasized that it did not engage the rating agency for this ESG evaluation. The assessment was prepared independently by ESG Risk Assessments & Insights Limited based on publicly available data pertaining to the company's FY 2024-25 performance. The rating agency issued the report voluntarily as part of their assessment process.

Regulatory Compliance

The company disclosed this information to both BSE Limited and National Stock Exchange of India Limited pursuant to Regulation 30(6) read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation has also been uploaded on the company's official website under the disclosures section for stakeholder access.

Transparency and Disclosure

The rating published by the agency is available for public viewing through the link provided in the company's disclosure. This transparency aligns with corporate governance practices and provides stakeholders with insights into the company's ESG performance across environmental, social, and governance parameters based on publicly available information.

Mahindra Logistics Limited has demonstrated exemplary compliance in its rights issue fund utilization, receiving a clean monitoring agency report from CARE Ratings Limited for the quarter ended December 31, 2025. The comprehensive review confirms zero deviations from the stated objectives of the ₹749.27 crore rights issue completed in August 2025.

Rights Issue Overview and Compliance Status

Mahindra Logistics Limited successfully completed its rights issue during July 31, 2025, to August 14, 2025, raising ₹749.27 crore for debt repayment and general corporate purposes. CARE Ratings Limited, serving as the monitoring agency, has confirmed that all fund utilizations align perfectly with the offer document disclosures.

Fund Utilization Progress During Q3FY26

The company deployed ₹93.16 crore during Q3FY26, bringing the cumulative utilization to ₹652.96 crore since the rights issue completion. The quarterly deployment focused on strategic investments and debt optimization initiatives.

Strategic Deployment Under General Corporate Purpose

The company strategically allocated ₹90.46 crore under general corporate purpose during the reporting period. The deployment included multiple value-creating initiatives across the organization and its subsidiaries.

Key Deployment Areas:

• Investment in MLL Express Services Private Limited: ₹50.00 crore
• Inter-corporate deposit with 2X2 Logistics Private Limited: ₹7.24 crore
• Capital expenditure payments to vendors: ₹4.85 crore
• Working capital demand loan repayment: ₹28.37 crore

Monitoring Agency Assessment

CARE Ratings Limited conducted a comprehensive review using bank statements, management certificates, and CA certificates verified by Deloitte Haskins & Sells LLP dated January 22, 2026. The monitoring agency confirmed no material deviations from the offer document objectives and no unfavorable events affecting project viability.

Unutilized Proceeds Management

The company maintains ₹96.31 crore in unutilized proceeds, primarily from the general corporate purpose allocation. These funds are strategically invested in fixed deposits with Kotak Mahindra Bank, earning 6.25% quarterly returns with maturity on August 28, 2026.

Investment Details:

• Fixed deposit amount: ₹98.70 crore
• Interest earned: ₹2.51 crore
• Return rate: 6.25% (quarterly payout)
• Remaining balance in monitoring account: ₹0.12 crore

Implementation Timeline and Future Deployment

The company has successfully met all implementation timelines without delays. Debt repayment objectives were completed ahead of schedule by August 25, 2025, against the March 31, 2026 target. The remaining general corporate purpose funds will be deployed through March 31, 2027, as per business requirements and board approvals.

The monitoring report reinforces Mahindra Logistics' commitment to transparent fund utilization and regulatory compliance, providing stakeholders with confidence in the company's capital allocation efficiency and strategic execution capabilities.