Mahindra Finance Posts ₹5.3 Billion Profit In Q1, Interest Income Surges To ₹41.65 Billion

Mahindra & Mahindra Financial Services Ltd (MMFSL) has reported a consolidated net profit of ₹5.3 billion for the June quarter of FY26, narrowly missing the IBES estimate of ₹5.34 billion. The company’s interest income rose to ₹41.65 billion, reflecting strong loan book growth and stable asset quality.

 

Key Highlights From The Quarterly Performance

 

- Total income reached ₹41.65 billion, driven by a 23 percent year-on-year expansion in assets under management, which stood at ₹1.06 trillion.

- Net profit of ₹5.3 billion marks a 45 percent increase over the same quarter last year, supported by lower credit costs and improved operational efficiency.

- Disbursements grew 5 percent year-on-year to ₹12,741 crore, with strong traction in passenger vehicles, commercial equipment, and SME lending.

- Stage 3 assets remained contained at 3.6 percent, while GS2+GS3 stayed below 10 percent, indicating prudent risk management.

- Capital adequacy stood at 18.5 percent, with Tier I capital at 16.4 percent, ensuring financial resilience.

 

Strategic Developments And Segmental Trends

 

- SME disbursements surged 68 percent year-on-year, with Loan Against Property now forming 43 percent of SME assets.

- The company invested ₹600 million in expanding Bistro kitchens and digital platforms, aiming to boost fee income and customer retention.

- Mahindra Finance continues to diversify beyond vehicle financing, with leasing, insurance, and mortgage segments showing steady growth.

 

Outlook

 

With a robust liquidity buffer and continued focus on digital transformation, MMFSL is well-positioned to sustain growth across core and emerging segments.

 

Sources: Economic Times, Screener.in, NDTV Profit, Business Standard, MahindraFinance.com.