39

39   Fair value measurement

    

i)

Financial instruments by category

The Group measures financial instruments, such as, derivatives, at fair value at each balance sheet date. Investment in associates are measures at fair value at acquisition date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

•    In the principal market for the asset or liability, or

•    In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

     

(₹ In Crore)

Particulars

31 March 2026

31 March 2025

FVTPL

FVTOCI

Amortised Cost

FVTPL

FVTOCI

Amortised Cost

   

Financial assets

Investments

-     Equity

12.08

3,159.40

–

–

4,626.75

–

-     Bonds

–

–

4,200.36

460.45

–

1,433.63

-     Government securities

–

224.70

–

–

78.30

367.55

-     Fixed maturity plans

–

–

1,126.90

–

–

884.18

-     Exchange traded funds

–

–

6,369.20

–

–

7,640.05

-     Commercial paper

–

–

294.10

–

–

–

-     Fixed deposits

–

–

1,041.80

–

–

503.50

-     Short-term funds

5,744.52

–

–

4,985.22

–

–

-     Short duration bond funds

1,024.32

–

–

731.78

–

–

-     Liquid mutual funds

484.55

–

–

1,020.62

–

–

-     Arbitrage Funds

788.09

–

–

2,493.57

–

–

-     Alternative Investment Fund

–

2.98

–

–

–

–

Trade receivables

–

–

3,473.44

–

–

2,125.22

Loans

21.40

–

18,802.62

21.40

–

9,894.76

Other financial assets

–

–

2,843.57

–

–

2,288.91

Cash and cash equivalents

–

–

2,989.97

–

–

2,331.53

Other bank balances

–

–

81.92

–

–

516.07

Derivative financial assets

–

231.46

–

2.51

1.14

–

Total financial assets

8,074.96

3,618.54

41,223.88

9,715.55

4,706.19

27,985.40

   

Financial liabilities

Borrowings

–

–

21,980.59

–

–

9,236.52

Lease liabilities

–

–

659.26

–

–

–

Sales tax deferral

–

–

73.30

–

–

127.64

Trade payables

–

–

8,804.01

–

–

6,372.71

Derivative financial liability

10.49

14.62

–

–

18.56

–

Other financial liabilities

–

–

1,388.86

–

–

775.23

Total financial liabilities

10.49

14.62

32,906.02

–

18.56

16,512.10

ii)

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has grouped its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

    

Financial assets/liabilities measured at fair value – recurring fair value measurements At 31 March 2026

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Financial investments at FVTPL

-     Short-term funds

5

5,744.52

–

–

5,744.52

-     Short duration bond funds

5

1,024.32

–

–

1,024.32

-     Liquid mutual funds

5

484.55

–

–

484.55

-     Derivative Asset

7

–

–

–

–

-     Loans

6

–

21.40

–

21.40

-     Arbitrage funds

5

788.09

–

–

788.09

-     Equity investment

5

–

–

12.08

12.08

Financial investments at FVTOCI

-     Derivative Asset

7

–

231.46

–

231.46

-     Government securities

5

–

224.70

–

224.70

-     Equity investment

5

3,061.10

98.30

–

3,159.40

-     Alternative Investment Fund

–

–

2.98

2.98

Total financial assets

11,102.58

575.86

15.06

11,693.50

Financial liabilities at FVTPL

Derivative financial liability

18

10.49

–

–

10.49

   

Financial liabilities at FVTOCI

Derivative financial liability

18

–

14.62

–

14.62

   

Total financial liabilities

10.49

14.62

–

25.11

Assets disclosed at fair value – At 31 March 2026

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Investment property

3

–

238.78

–

238.78

Financial assets/liabilities measured at fair value – recurring fair value measurements At 31 March 2025

      

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Financial investments at FVTPL

– Short-term funds

5

4,985.22

–

–

4,985.22

– Short duration bond funds

5

731.78

–

–

731.78

– Liquid mutual funds

5

1,020.62

–

–

1,020.62

– Bonds

5

–

460.45

–

460.45

– Derivative Asset

7

–

2.51

–

2.51

– Loans

6

–

21.40

–

21.40

– Arbitrage funds

5

2,493.57

–

–

2,493.57

-Alternative Investment Fund

–

–

–

–

   

Financial investments at FVTOCI

– Derivative Asset

7

–

1.14

1.14

– Government securities

5

–

78.30

78.30

– Equity investment

5

4,365.57

261.18

–

4,626.75

Total financial assets

13,596.76

824.98

–

14,421.74

   

Financial liabilities at FVTOCI

Derivative financial liability

17

–

18.56

–

18.56

Total financial liabilities

–

18.56

–

18.56

Assets disclosed at fair value – At 31 March 2025

   

(₹ In Crore)

Particulars

Notes

Level 1

Level 2

Level 3

Total

   

Investment property

3

–

234.09

–

234.09

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Techniques used to determine fair value

Valuation Techniques used to determine fair value include

• Open ended mutual funds at NAV’s/rates declared and/or quoted

iii) Fair value of financial assets and liabilities measured at amortised cost

(₹ In Crore)

Particulars

31 March 2026

31 March 2025

Carrying Amount

Fair value

Carrying Amount

Fair value

   

Financial assets

Investments

Bonds

4,200.36

4,152.30

1,433.63

1,403.15

Government securities

–

–

367.55

362.30

Fixed maturity plans

1,126.89

1,149.47

884.18

891.68

Exchange traded funds

6,369.20

6,363.38

7,640.05

7,675.55

Total financial assets

11,696.45

11,665.15

10,325.41

10,332.68

The carrying amounts of commercial papers, fixed deposits, trade receivables, trade payables, other financial assets/liabilities, loans, other bank balances, short term borrowings, lease liabilities, sales tax deferral and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.