The Mahindra Group-backed NBFC reported a sharp 55% year-on-year (YoY) jump in standalone net profit to Rs 873 crore for the March quarter, compared to Rs 563 crore a year ago. The strong bottom-line performance was supported by steady business momentum, margin expansion, and disciplined cost management.
Operationally, the company remained on a solid footing. Assets under management (AUM) grew 12% YoY, while disbursements rose 11%. Net interest margins (NIM) expanded significantly by around 101 basis points to 7.5%, reflecting improved yields and a lower cost of funds. Credit costs remained largely stable at 1.5% for the quarter.
For the full financial year FY26, Mahindra Finance reported a 19% YoY increase in profit after tax to Rs 2,782 crore, up from Rs 2,345 crore. Annual disbursements grew 6%, while margins strengthened, supported by higher fee income and lower funding costs. Asset quality remained stable within guidance, with GS3 at 3.4% and GS2+GS3 at 8.2%, reflecting disciplined risk management.
Business momentum remained healthy despite external uncertainties. Quarterly disbursements stood at Rs 17,184 crore, up 11% YoY, aided by sustained demand following GST rate cuts. Notably, tractor financing emerged as a standout segment, with disbursements surging 63% YoY. Overall business assets climbed 12% to Rs 1.34 lakh crore, driven by growth across tractors, passenger vehicles, and MSME-focused secured lending.
Mahindra Finance also maintained its leadership in tractor financing and continued to rank among the top NBFCs in passenger vehicle, light commercial vehicle, and used vehicle financing.
A key highlight was the company’s ongoing diversification beyond vehicle financing. Its non-vehicle finance portfolio expanded 32% YoY, with growing contributions from SME lending, mortgages, leasing, and fee-based businesses such as insurance and investment products. Fee income, in particular, has been on an upward trajectory, aligning with the company’s strategy to strengthen non-interest revenue streams.Within the SME segment, the company is tapping into India’s MSME growth story. The SME loan book stood at Rs 8,090 crore as of March 31, 2026, marking a 32% YoY increase. Growth was largely driven by the Loan Against Property (LAP) portfolio, which surged 41% over the same period.
Overall, Mahindra Finance’s Q4 performance reflects a balanced mix of growth, profitability, and strategic diversification, factors that appear to have struck the right chord with investors.
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