Mumbai - The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading provider of financial services in Emerging India, at its meeting held today, announced the audited financial results for the quarter and year ended March 31, 2025. The Board has proposed a final dividend of Rs. 6.50 per fully paid equity share of face value of Rs 2/- each i.e. 325% Vs Rs 6.30 per share in the last fiscal year.
Standalone:
Key Highlights:
MMFSL reported a 33% year-on-year growth in Profit After Tax (PAT) for FY25. The company's loan book grew by 17% and annual disbursements grew at 3% with underlying wheels business seeing a moderate FY25. MMFSL's Asset quality remained within a comfortable range, with GS3 at 3.7% and GS2+GS3 at 9.1%. The credit cost for FY25 was at 1.3% underscoring prudent risk management.
Q4FY25 and FY25 Standalone Results:
Results (INR. Crores) Q4 FY25 Q4 FY24 YoY % FY25 FY24 YoY %
Disbursements 15,530 15,292 2% 57,900 56,208 3%
Gross Loan Book (Closing) 1,19,673 1,02,597 17% 1,19,673 1,02,597 17%
Total Income (TI) 4,245 3,706 15% 16,075 13,562 19%
Net Interest Income (NII) 2,156 1,971 9% 8,176 7,135 15%
NII Margin (as % of Avg. Total Assets) 6.5% 7.1% 6.5% 6.8%
Pre-Provisioning Operating Profit (PPOP) 1,213 1,173 3% 4,765 4,178 14%
Credit Costs 457 341 34% 1,618 1,823 (11%)
Credit Costs (as % of Avg. Total Assets) 1.4% 1.2% 1.3% 1.7%
Profit After Tax 563 619 (9%) 2,345 1,760 33%
ROA (as % of Avg. Total Assets) 1.7% 2.2% 1.9% 1.7%
Asset quality: GS2+GS3 @ 9.1%. Stage-3 @ 3.7%.
Capital Adequacy healthy at 18.3%, Tier-1 Capital @15.2%. Provision coverage on Stage 3 loans prudent at 51.2 %. Total liquidity buffer comfortable at ~ INR10,400 crores.
Operations:
Mahindra Finance recorded disbursements of INR15,530 crore, reflecting a 2% YoY growth. For the full financial year, disbursements stood at approximately INR57,900 crore, a 3% increase over the previous year. While the overall disbursement growth was relatively subdued, SME disbursements grew 48% compared to FY24. The company's gross assets under management (AUM) grew by 17% YoY, reaching INR1,19,673 crore.
Collection efficiency remained stable at 97% in Q4 FY25 compared to 98% in Q4 FY24. The company continued to maintain underwriting discipline and a proactive approach to early-stage delinquencies. As of March 31, 2025, Stage 3 assets stood at 3.7%, down from 3.9% in December 2024, while Stage 2 assets decreased to 5.4% from 6.3% in the previous quarter. As targeted, the Company has been able to maintain the GS3+GS2 below 10%. Liquidity remained strong, with a liquidity chest of over INR10,400 crore ensuring financial flexibility.
CORE
Wheels Business:
Mahindra Finance continues to be the market leader in tractor financing and remains among the top five NBFCs for financing three-wheelers, passenger vehicles (PVs), commercial vehicles (CVs), light commercial vehicles (LCVs), and small commercial vehicles (SCVs).
Mahindra Finance has undertaken multiple strategic initiatives during FY25 to enhance portfolio quality and operational efficiency. The company realigned its collection structure to a product-based model, with a continuesfocus on high-risk portfolios. This restructuring has enabled quicker response mechanisms and better customer connect.
Further, Mahindra Finance has accelerated its digital transformation agenda, deploying AI-based early warning systems, digitized field collections, and self-service platforms for customers. These initiatives have resulted in improved resolution rates & better controls over delinquent customers.
During the year the company stabilized the operating model changes through 100% implementation of Centralized processing center (CPC), FCU & revamping the retail branch structure. These changes drove improvements on efficiency, standardization, controls, customer service, and cross-sell.
NEW ENGINES
The company continues to expand into new categories beyond vehicle financing through a focus on SME lending, leasing (Quiklyz), insurance and mortgages. The company is driving these new engines by broadening its product offering, improving its technology stack, strategic partnerships, data analytics, and equipping its workforce to meet customer requirements. The non-vehicle finance portfolio grew by 30% over the past year further diversifying its asset base.
SME:
The company recognizes the growth potential within the MSME sector in India, with specific focus on the micro and small enterprises segment. Disbursements in this category grew by 30% YoY in Q4 (FY25 YoY growth: 48%), which drove asset book expansion by 28% on a YoY basis and was at INR6,148 crore as of March 31, 2025. The growth is driven by secured offerings such as Loan Against Property (LAP), which now accounts for 43% of total SME assets. Asset quality in this segment remains strong, with Stage 3 assets at 1.1% as of the quarter-end.
Leasing:
The leasing business also continued its growth momentum, with 18% YoY growth in Q4FY25 and 31% YoY growth in FY25 disbursements. The company has shown strong growth in the B2B business, calibrated B2C subscription business and is continuously working on strengthening processes and system to enable business at scale. The company is working to increase customer engagement through dedicated Account Managers, customized portal & cross-sell.
Insurance:
The company has increased its number of partners to ten leading insurance providers across life, non-life, and health categories with the objective of offering comprehensive insurance offering solutions to customers. The company has launched phase 1 of digital portal for generating insurance quotation, proposal form and payment. As part of its commitment to be a responsible financial services provider, the company is training its employees as per regulatory guidelines on insurance cover selling.
Mortgage:
The company is in investment mode, and is currently focused on recruitment, infrastructure build out, and technology setup towards building up its mortgage capabilities.
Recognitions
Mahindra Finance received multiple recognitions during the year. The company was named among the best workplaces in the categories of 'Top Rated Large Company' and 'Top Rated Financial Services Company' at the AmbitionBox Employee Choice Awards 2024. It also won the 'Best Learning & Development Program of the Year - NBFC/HFC/MFI' for its Transformational Leadership Development Program at the ETBFSI Exceller Awards 2024. Additionally, it was awarded 'Best NBFC in Talent & Workforce' at the Business Today Banking and Economy Summit 2025.
On the digital front, Mahindra Finance launched its new mobile app with an improved user experience, enabling customers to manage their finances seamlessly.
During the quarter, the company strengthened its leadership team, onboarding experienced professionals from banking, technology, and financial services to drive strategic growth and operational efficiencies. Internally, it successfully concluded the Emerging Leadership Development Program (ELDP) 2024-25, designed to develop future leaders.
Looking ahead, Mahindra Finance remains focused on strengthening its core vehicle finance business while accelerating growth in non-vehicle finance segments. The company aims to expand MSME and LAP financing, enhance digital transformation efforts, and improve overall customer experience. With a continued emphasis on cost optimization, risk management, and governance, the company is well- positioned for sustainable growth in the coming year.
https://www.mahindra.com/news-room/press-release/en/financial-results%E2%80%93quarter-4-FY25-standalone-and-consolidated-results
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