Mahindra & Mahindra Financial Services Limited (Mahindra Finance) has reported a standalone profit after tax (PAT) of Rs 899 crore for the quarter ended June 30, 2026, registering a growth of 70 per cent compared to the corresponding quarter last year.
The company’s assets under management (AUM) grew 13 per cent year-on-year to Rs 1,37,449 crore, while disbursements rose 22 per cent to Rs 15,564 crore, marking the highest-ever first-quarter disbursements. Net interest margin (NIM) expanded to 7.3 per cent from 6.7 per cent a year ago, while credit cost improved to 1.5 per cent from 1.9 per cent.
Total standalone income increased 12 per cent to Rs 4,974 crore during the quarter. Pre-Provisioning Operating Profit (PPOP) stood at Rs 1,756 crore, up 30 per cent year-on-year.
Raul Rebello, MD and CEO, Mahindra Finance, said the company’s performance reflected the strength of its business, supported by higher profitability, resilient asset quality and progress in its growth strategy. He said continued investments in the core vehicle finance business, new growth engines and technology are supporting profitable and disciplined growth.
The company maintained a capital adequacy ratio of 18.5 per cent, with Tier-1 capital at 16.5 per cent. Provision coverage on Stage 3 assets stood at 58 per cent, while the liquidity buffer remained above Rs 14,650 crore.
On a consolidated basis, total income increased 14 per cent to Rs 5,725 crore in Q1 FY27 from Rs 5,013 crore in the corresponding period last year. Consolidated PAT rose 75 per cent to Rs 927 crore from Rs 529 crore.
Mahindra Finance said quarterly disbursements were supported by strong growth in tractor financing, which rose 45 per cent year-on-year, and passenger vehicle financing, which grew 24 per cent. Stage 3 assets improved to 3.5 per cent from 3.8 per cent a year earlier, while Stage 2 assets declined to 4.9 per cent from 5.9 per cent, reflecting improved portfolio quality and slippage control. Collection efficiency remained stable at 95 per cent.
The company said it continued to maintain its leadership in tractor financing and remained among the leading NBFCs in financing passenger vehicles, used passenger vehicles and light commercial vehicles. It also reported that non-vehicle finance disbursements, including MRHFL, grew 79 per cent year-on-year, while digital and AI capabilities continued to support customer acquisition, operational resilience and collection efficiency.
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