Mahindra & Mahindra Financial Services Ltd. reported a 30-basis-point quarterly drop in net interest margin to 7% in Q2 FY27, even as annual profit climbed 54.9%, highlighting different trends in earnings and spreads. The company, also known as Mahindra Finance, focuses on vehicle and tractor financing, with lending in rural and semi-urban markets and businesses that include SME finance and mortgages.
Standalone profit after tax for the quarter ended Sept. 30, 2026, totaled Rs 881.52 crore. It was Rs 569.31 crore in Q2 FY26 and Rs 898.65 crore in Q1 FY27. Consolidated net profit reached Rs 910.73 crore, compared with Rs 566.07 crore in the year-earlier quarter. The board approved unaudited standalone and consolidated results for the quarter and half year, subject to a limited review by the joint statutory auditors.
The company’s investor presentation showed disbursements up 22% from a year earlier to Rs 16,499 crore. Business assets under management rose 15% to Rs 1,46,512 crore. Credit costs were 1.55% of average total assets, compared with 1.50% in Q1 FY27 and 2.17% in Q2 FY26. Gross Stage 3 assets edged down to 3.42% in September from 3.45% in June, while collection efficiency improved to 97% from 95% in Q1.
Raul Rebello, managing director and CEO of Mahindra Finance, said the company was “encouraged by the momentum,” citing growth in disbursements and profit. The results build on EconoTimes’ earlier coverage of Mahindra Finance’s profit growth and lower credit costs.
NDTV Profit reported that Citi kept its Buy rating and lowered its price target to Rs 420 per share from Rs 440. NDTV Profit said Jefferies left its Hold call unchanged and reset the target at Rs 330, compared with Rs 365 previously. Moneycontrol separately reported Citi’s Buy rating and Rs 420 target.
In its account of the brokerage views, NDTV Profit cited elevated liquidity and trade advances as pressures on spreads. It also reported concerns about interest rates, insurance-related fee income and potential credit stress following weak monsoon conditions.
