Mahindra and Mahindra Financial Services Ltd

Mahindra & Mahindra Financial Services Ltd announced reaffirmations of its credit ratings received on September 7th, 2026, from CRISIL Ratings Limited, India Ratings & Research Private Limited, and CARE Ratings Limited. CRISIL Ratings Limited reaffirmed ‘CRISIL AAA'/ Stable and ‘CRISIL A1+’ for Bank Loans (INR 20,000 Crore), ‘CRISIL A1+’ for Commercial Paper (INR 20,000 Crore), ‘CRISIL AAA'/ Stable for Fixed Deposit (INR 20,000 Crore), ‘CRISIL AAA'/ Stable for Non-Convertible Debentures (INR 30,980 Crore), and ‘CRISIL AAA'/ Stable for Subordinated Debt (INR 6,000.5 Crore); India Ratings & Research Private Limited reaffirmed ‘IND AAA/Stable/IND A1+’ for Bank Loans (INR 800,000 mn), ‘IND AAA/Stable’ for Fixed Deposits (INR 200,000 mn), ‘IND AAA'/ Outlook Stable for Non-convertible Debentures (INR 490 bn), ‘IND AAA'/ Outlook Stable for Retail Non-convertible Debentures (INR 80 bn), ‘IND AAA'/ Outlook Stable for Private Sub Debt (INR 104.5 bn), ‘IND PP -MLD AAA/Stable’ for Principal protected Market Linked Debentures (INR 15 bn), ‘IND AAA'/ Outlook Stable for Retail Subordinate Debt (INR 30 bn), and ‘IND A1+’ for Commercial Paper (INR 200,000 mn); CARE Ratings Limited reaffirmed CARE AAA; Stable / CARE A1+ for Long Term / Short Term Bank facilities (INR 50,000 Crore), CARE AAA; Stable for Secured non-convertible debenture (NCD Privately Placed) (INR 11,686.50 Crore), CARE AAA; Stable for Unsecured non-convertible debenture (NCD privately placed) (INR 1,000 Crore), CARE AAA; Stable for Subordinated debt (privately placed) (INR 2,385 Crore), and CARE AAA; Stable for Long -term debt programme (public issue non -convertible debentures/subordinated debt) (INR 4,059.03 Crore), with no enhancements, assignments, or withdrawals noted.

Mahindra & Mahindra Financial Services Ltd share price slipped 0.29% to Rs 388.7 after the company's net profit slipped by 1.38% to Rs 927.48 crore, while revenue from operations improved marginally 3.24% to Rs 5717.91 crore in Q2FY26 over Q1FY26. The market capitalization of Non Banking Financial Company (NBFC) industry group stocks on BSE stood at Rs 17.07 lakh crore, rising 7.10%. It has eased by 0.75% over last one week and soared by 15.14% in last one month while the market capitalization of Mahindra & Mahindra Financial Services Ltd has softened by 2.53% and 25.85% in the same period respectively. Profit before tax (PBT) of Mahindra & Mahindra Financial Services Ltd stood at Rs 1242.22 crore in Q2 FY26, jumping 76.56% year-on-year, and declining 1.34% quarter-on-quarter. EBITDA came in at Rs 1305 crore, surging by 80.39% YoY and slipping 0.47% sequentially. Total expenses grew marginally by 4.36% to Rs 4504.81 crore in Q2FY26 over Q2FY25. During the quarter, employee benefits expense was at Rs 672.89 crore, inching up 4.91% YoY. For the TTM ended FY26, revenue from operations improved 13.77% to Rs 21005.37 crore, while net profit jumped 26.55% to Rs 2861.11 crore, compared to previous TTM. EBITDA witnessed a strong improvement of 321204% to Rs 4112.57 crore, and PBT witnessed a strong rise of 26.40% to Rs 3825.9 crore compared to previous TTM. Mahindra & Mahindra Financial Services Ltd surged by 45.94% in last one year, significantly outperforming the benchmark BSE Sensex which has eased by 4.36% during the same period.

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.