Mahindra & Mahindra Financial Services reported higher standalone profit and lower credit costs for Q2 FY27, as growth in non-vehicle finance disbursements accompanied a 22% rise in total lending disbursements. The quarter ended Sept. 30, 2026, and the company’s unaudited results are subject to limited review.
Standalone profit after tax reached ₹881.52 crore (₹8.82 billion), up from ₹569.31 crore a year earlier. Revenue from operations rose 15% to ₹5,163.51 crore. The company reported consolidated profit of ₹910.73 crore, a 61% increase from ₹566.07 crore in Q2 FY26.
Total disbursements were ₹16,499 crore. Business assets under management grew 15% year over year to ₹146,512 crore, or about ₹1.47 trillion. The company said disbursements across its non-vehicle finance businesses—including SME, personal loans, other and housing finance—rose 52%. It has identified diversification beyond vehicle finance as a strategic priority.
Credit costs declined to 1.6% of average total assets from 2.2% in the year-earlier quarter. Provisions and write-offs fell 16% to ₹629.51 crore. Net interest income increased 17% to ₹2,822 crore, and pre-provisioning operating profit rose 20% to ₹1,791 crore. Net interest margin was unchanged at 7.0%.
Asset-quality measures improved year over year. Stage 3 assets were 3.4%, compared with 3.9%, while Stage 2 assets fell to 4.7% from 5.8%. Collection efficiency edged up to 97% from 96%.
The company’s investor presentation sets FY31 milestones of 2.2% to 2.5% return on assets, credit costs between 1.3% and 1.7%, and combined Stage 2 and Stage 3 assets below 10%. Standalone return on assets was 2.2% in Q2 FY27.
