M&M Financial Services has received an upgraded Environmental, Social and Governance (ESG) rating, with its score improving to 79.6 from the previous rating of 76.2. The enhanced rating was assigned by SES ESG Research Private Limited, a SEBI registered Category II ESG rating provider.

ESG Rating Enhancement Details

The company informed stock exchanges about the rating upgrade through a regulatory filing on January 3rd, 2026. The ESG assessment was conducted independently by SES ESG Research Private Limited without any engagement from the company.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing referenced Part A, Para A (3) of Schedule III and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Key aspects of the rating process include:

• Independent assessment by SEBI registered ESG rating provider
• Based on publicly available company data for FY 2024-25
• No direct engagement between the company and rating agency
• Compliance with latest SEBI ESG rating guidelines

Rating Methodology and Significance

SES ESG Research Private Limited conducted the assessment using publicly available information from Mahindra & Mahindra Financial Services Limited pertaining to FY 2024-25. The rating reflects the company's performance across environmental sustainability, social responsibility, and governance practices.

The company has made the regulatory filing available on its official website under the investor relations section, ensuring transparency and accessibility for stakeholders. This ESG rating upgrade demonstrates the company's commitment to sustainable business practices and enhanced governance standards.

M&M Financial Services has reported significant business expansion with its total assets reaching ₹1,29,000 crore in December 2024, marking a robust 12% growth. The financial services company has demonstrated its ability to scale operations while maintaining operational efficiency across its lending portfolio.

Business Asset Performance

The company's asset base expansion reflects strong business momentum during the reporting period. The 12% growth in business assets indicates healthy demand for the company's financial services offerings and successful portfolio expansion strategies.

Collection Efficiency Remains Stable

Despite the significant asset growth, M&M Financial Services has maintained its collection efficiency at 95%, showing no change from the previous year. This stability in collection performance demonstrates the company's effective risk management practices and consistent operational standards.

The flat year-over-year collection efficiency indicates that the company has successfully managed its expanded portfolio without compromising on asset quality. This performance metric is particularly significant given the substantial growth in business assets, as it shows the company's ability to maintain collection standards while scaling operations.

Financial Services Sector Performance

The combination of strong asset growth and stable collection efficiency positions M&M Financial Services favorably within the financial services sector. The 12% asset expansion coupled with maintained collection standards reflects balanced growth strategy focused on both business expansion and operational excellence.