Mahindra and Mahindra Financial Services Ltd

On a standalone basis, profit after tax increased 69.6% YoY to Rs 899 crore in Q1 FY27. Total income rose 12.1% YoY to Rs 4,974 crore in the quarter ended 30 June 2026. Pre-Provisioning Operating Profit (PPOP) increased 29.8% YoY to Rs 1,756 crore. Net interest margin (NIM) increased 21.1% YoY to Rs 2,766 crore, while the NIM margin expanded to 7.3% from 6.7% a year ago. Credit costs declined 13.6% YoY to Rs 570 crore, while the credit cost ratio improved to 1.5% from 1.9% in Q1 FY26. Business assets under management (AUM) grew 12.7% YoY to Rs 1,37,449 crore, while quarterly disbursements rose 21.5% YoY to a record Rs 15,564 crore, driven by strong growth in tractor financing and passenger vehicles. The company said tractor disbursements increased 45% YoY, while passenger vehicle disbursements grew 24% YoY. Non-vehicle finance disbursements, including Mahindra Rural Housing Finance (MRHFL), surged 79% YoY as the company continued to diversify beyond its core vehicle financing business. It added that digital and AI capabilities are improving customer acquisition, operational resilience and collection efficiency. Asset quality improved during the quarter, with Stage 3 assets declining to 3.5% from 3.8% a year ago and Stage 2 assets improving to 4.9% from 5.9%. Collection efficiency remained steady at 95%. Capital adequacy remained healthy at 18.5%, including Tier-I capital of 16.5%. The company maintained a prudent 58% provision coverage on Stage 3 assets and ended the quarter with a liquidity buffer exceeding Rs 14,650 crore. Managing director and CEO Raul Rebello said the company's performance reflected the strength of its franchise, with continued expansion in profitability, resilient asset quality and progress on its growth strategy. He said investments in the core vehicle finance business, new growth engines and technology continue to support profitable and disciplined growth. On a consolidated basis, total income increased 14.2% YoY to Rs 5,725 crore, while profit after tax rose 75.2% YoY to Rs 927 crore. Mahindra & Mahindra Financial Services is one of India's leading non-banking finance companies, offering vehicle and tractor financing, SME lending, home loans, insurance and investment solutions, with a strong presence across rural and semi-urban India. Powered by Capital Market - Live

Mahindra & Mahindra Financial Services has received credit ratings from India Ratings and Research as under: Bank loan (Rs 80,000 crore) - IND AAA/ Stable/ IND A1+ Fixed deposits (Rs 20,000 crore) - IND AAA/Stable

Mahindra Stable / CARE A1+ for long and short term bank facilities aggregating to Rs 50,000 crore.

Net profit of Mahindra & Mahindra Financial Services rose 75.43% to Rs 926.03 crore in the quarter ended June 2026 as against Rs 527.87 crore during the previous quarter ended June 2025. Sales rose 14.57% to Rs 5717.91 crore in the quarter ended June 2026 as against Rs 4990.61 crore during the previous quarter ended June 2025. ParticularsQuarter EndedJun. 2026Jun. 2025% Var. Sales5717.914990.61 15 OPM %64.4360.64 - PBDT1341.36789.45 70 PBT1242.22703.58 77 NP926.03527.87 75 Powered by Capital Market - Live

The NBFC's business assets jumped around 12% Yo Y at approximately Rs 1,37,300 crore. The Collection Efficiency (CE) is estimated at 95% for Q1 FY27 (In Q1 FY26, CE was 95%). The company's liquidity position stood at Rs 14,600 crore as on 30th June 2026. As at June 30, 2026, Stage-3 is estimated in the range of 3.4% to 3.5% (3.4% as at March 31, 2026, and 3.8% as at June 30, 2025) and Stage-2 is estimated in the range of 4.9 % to 5.0% (4.8% as at March 31, 2026, and 5.9% as at June 30, 2025). Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 12 million customers. The company is a leading vehicle and tractor financier, provides loans to SMEs, and also offers fixed deposits. The company has 1,348 offices and reaches out to customers spread over 518,000 villages and 8,000 towns across the country, transforming more than 1.2 crore lives. The NBFC's consolidated net profit surged 105.16% to Rs 938.02 crore in Q4 FY26, compared with Rs 457.22 crore in Q4 FY25. Revenue from operations jumped 13.37% YoY to Rs 5,538.73 crore in Q4 March 2026.Powered by Capital Market - Live

Mahindra & Mahindra Financial Services has received affirmation in credit ratings for non convertible debentures and subordinate debt of the company at CARE AAA; Stable.

Mahindra & Mahindra Financial Serv. will hold a meeting of the Board of Directors of the Company on 21 July 2026.

Mahindra & Mahindra Financial Services has allotted 2,20,000 secured, rated, floating, listed, redeemable non convertible debentures of face value of Rs 1 lakh per debenture aggregating to Rs 2200 crore on private placement basis on 19 May 2026.

Mahindra & Mahindra Financial Services has allotted 50,000 Listed, Secured, Rated, Redeemable Non-convertible Debentures of the face value of Rs. 1,00,000 per debenture, issued at par, aggregating to subscription amount of Rs. 500 crore on private placement basis.

Total income increased by 13.30% year on year to Rs 4,810.07 crore in the quarter ended 31 March 2026. Profit before tax was at Rs 1,161.34 crore in Q4 FY26, up 53.68% from Rs 755.66 crore posted in Q4 FY25. Net interest margin (NIM) in Q4 FY26 stood at Rs 2,739 crore, up 27% YoY. The NIM margin was at 7.5% in Q4 FY26, compared with 6.5% for Q4 FY25. Disbursement during the quarter was at Rs 17,184 crore, registering a growth of 11% YoY. The collection efficiency improved to 98% in Q4 FY26 as against 97% in Q4 FY25, driven by renewed momentum in collection on account of new stack adoption, digital workflows, data-led prioritization, and sharper focus on early delinquencies. The company's capital adequacy remained healthy at 18.8%, with Tier-1 capital at 16.7%. Provision coverage on GS3 stood at 59%, supported by the creation of management overlays. The total liquidity buffer remained comfortable at over Rs 9,100 crore. Asset quality improved both sequentially and on a YoY basis, with Stage 3 assets at 3.4% and Stage 2 assets at 4.8%, indicating gradual portfolio normalization and better slippage control. Quarterly disbursements remained healthy at Rs 17,184 crore, registering 11% YoY growth amid geopolitical headwinds, while demand momentum remained positive following GST rate cuts. Tractor disbursements grew 63% YoY during the quarter, driven by the company's focus on profitable growth. Business assets grew 12% YoY to Rs 134,096 crore, led by tractors, passenger vehicles (PVs), and MSME-led secured lending products. On a consolidated basis, profit after tax (PAT) stood at Rs 940 crore for the quarter, as against Rs 456 crore in the year-ago period. Total income increased by 14% to Rs 5,560 crore for the quarter ended March 31, 2026, compared with Rs 4,897 crore in the corresponding quarter last year. Raul Rebello, MD & CEO, Mahindra Finance said: This year's progress across growth, margins, and risk was driven by disciplined execution and resulted in a tangible step-up in profitability. Continued investments in our core vehicle franchise, new growth categories, and technology will support sustainable growth and profitability. Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) has recommended a dividend of Rs 7.50 per equity share of face value Rs 2 each (375%) for the financial year ended 31 March 2026. The dividend, if approved by shareholders at the annual general meeting (AGM) scheduled for Tuesday, 21 July 2026, will be paid thereafter through permitted modes to eligible shareholders or their authorized mandates. Mahindra & Mahindra Financial Services (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 12 million customers. The company is a leading vehicle and tractor financier, provides loans to SMEs, and also offers fixed deposits. The company has 1,348 offices and reaches out to customers spread over 518,000 villages and 8,000 towns across the country, transforming more than 1.2 crore lives.