28thOctober 2025
To, BSE Limited (Scrip Code: 532720)Phiroze Jeejeebhoy Towers, Dalal Street, Fort,
Mumbai - 400 001
National Stock Exchange of India Ltd. (Symbol: M&MFIN)Exchange Plaza, 5thFloor, Plot No. C/1, "G" Block, Bandra - Kurla Complex, Bandra (East),
Mumbai - 400 051
Dear Sir/ Madam,
Sub: Press Release -Financial results for the second quarter and half year ended 30thSeptember 2025Please find enclosed Press Release on the unaudited standalone and consolidated financial results of the Company for the second quarter and half year ended 30thSeptember 2025, which have been subjected to limited review by the Joint Statutory Auditors of the Company.
The meeting of the Board of Directors of the Company concluded at 16:05 p.m. (IST) for the aforesaid agenda matter.
This intimation along with the press Release is also being uploaded on the Company's website:
https://www.mahindrafinance.com/investor-relations/regulatory-filings
Kindly take the same on record. Thanking you,
For Mahindra & Mahindra Financial Services Limited
BRIJBALA MOHANLAL BATWAL
Digitally signed by BRIJBALA MOHANLAL BATWAL Date: 2025.10.28
16:37:23 +05'30'
Brijbala Batwal Company Secretary FCS No.: 5220PRESS RELEASE
Financial Results - Quarter 2 FY26, Standalone & Consolidated Results
Mumbai, October 28, 2025: The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance / MMFSL), a leading provider of financial services in Emerging India, at its meeting held today, announced the unaudited financial results for the quarter ended September 30, 2025 (Q2 FY26). Standalone: Key Highlights:MMFSL reported a 54% year-on-year (YoY) growth in Profit After Tax (PAT) for the quarter ended September 30, 2025. The Company's loan book grew by 13% YoY and disbursements grew at 3% YoY. MMFSL's Asset quality remained within the guided range, with GS3 at 3.9% and GS2+GS3 at 9.7%. The credit cost for quarter ended September 30, 2025, was at 2.2%.
Q2FY26 Standalone Results:Results (₹. Crores) | Q2 FY26 | Q2 FY25 | YoY % | Q1 FY26 | QoQ % | H1 FY26 | H1 FY25 | YoY % | |
Disbursements | 13,514 | 13,162 | 3% | 12,808 | 6% | 26,323 | 25,903 | 2% | |
Gross Loan Book (Closing) | 1,27,246 | 1,12,454 | 13% | 1,22,008 | 4% | 1,27,246 | 1,12,454 | 13% | |
Total Income (TI) | 4,489 | 3,925 | 14% | 4,438 | 1% | 8,927 | 7,685 | 16% | |
Net Interest Income (NII)* | 2,423 | 1991 | 22% | 2,285 | 6% | 4,708 | 3,922 | 20% | |
NII Margin (as % of Avg. Total Assets) | 7.0% | 6.5% | 6.7% | 6.8% | 6.5% | ||||
Pre-Provisioning Operating Profit (PPOP) | 1499 | 1,196 | 25% | 1,353 | 11% | 2,852 | 2,331 | 22% | |
Credit Costs | 751 | 703 | 7% | 660 | 14% | 1,411 | 1,152 | 23% | |
Credit Costs (as % of Avg. Total Assets) | 2.2% | 2.3% | 1.9% | 2.0% | 1.9% | ||||
Profit After Tax | 569 | 369 | 54% | 530 | 8% | 1,099 | 882 | 25% | |
ROA (as % of Avg. Total Assets) | 1.6% | 1.2% | 1.6% | 1.6% | 1.5% |
*Including Dividend and Other Income
Capital Adequacy healthy at 19.5%, Tier-1 Capital @16.9%. Provision coverage on Stage 3 loans prudent at 53%. Total liquidity buffer comfortable at ~ ₹8,572 crores.
Mahindra Finance recorded disbursements of ₹13,514 crore, reflecting a 3% YoY growth. While the overall disbursement growth was relatively subdued, tractor disbursements grew 41% YoY. The company's business assets grew by ~13% YoY, reaching ₹1,27,246 crore as of September 30, 2025. Collection efficiency was at 96%, similar to Q2 FY25, indicating continued resilience in customer repayments.
Asset quality remained broadly stable during the quarter. The company continues to maintain GS2 + GS3 levels below 10%, reflecting disciplined portfolio management. Liquidity remained healthy ensuring ample flexibility for future growth and risk mitigation.
CORE
Wheels Business:Mahindra Finance continues to maintain its leadership position in tractor financing and is amongst the leading NBFCs for financing passenger vehicles (PVs), light commercial vehicles (LCVs), small commercial vehicles (SCVs), tractors and used PVs.
Building on the transformation journey digitally enabled field operations, AI-driven early warning systems, and self-service platforms are playing a pivotal role in improving delinquency management and enhancing customer engagement.
To drive greater operational efficiency, Mahindra Finance has evolved its operating model to include migration to a new Cloud based Loan Management system (LMS), the establishment of 2 fully operational centralized processing centers, bolstered fraud control units, and a more streamlined retail branch structure, all of which are designed to unlock cross-sell opportunities and deliver a more consistent customer experience
NEW ENGINES
Diversification beyond vehicle finance remains a key strategic priority for Mahindra Finance. The company is steadily expanding its presence across SME lending, leasing through Quiklyz, fee-based income through insurance and investment products -underpinned by robust investments in technology, analytics, and channel development. The non-vehicle finance portfolio continues to grow by 33% YoY 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. Asset book expanded by 34% on a YoY basis and was at ₹6,911 crore as of September 30, 2025. The growth is driven by secured offerings through Loan Against Property (LAP). Asset quality in this segment remains strong, with Stage 3 assets at 1.4% as of the quarter-end.
Leasing:The leasing business continued to gain momentum, driven by reasonable growth in the B2B segment and a measured expansion in the B2C space. Mahindra Finance remained focused on enhancing customer engagement through digitized platforms, dedicated account managers, and deeper integration with ecosystem partners.
Insurance:In the insurance segment, the company witnessed encouraging adoption of its digital insurance portal, launched in the previous quarter. Covering life, health, and general insurance categories, the portal now allows customers to generate quotes, submit proposals, and make digital payments seamlessly. Strengthening employee training on regulatory compliance and responsible insurance selling remains a key focus area.
On the ESG front, CFC Finlease Private Limited, a SEBI-registered ESG Rating Provider, has assigned the company an ESG Score of 83 (Category - "Excellent") with an ESG Rating of "A", underscoring its commitment to sustainable and responsible business practices.
Consolidated: Q2FY26 Consolidated ResultsQ2FY26 Results (₹ Crores) | Q2 FY26 | Q2 FY25 | YoY % | H1FY26 | H1FY25 | YoY% | |
Total Income (TI) | 5,049 | 4,479 | 13% | 10,063 | 8,834 | 14% | |
Profit After Tax | 566 | 390 | 45% | 1,095 | 887 | 23% | |
Disbursements | 14,491 | 13,873 | 4% | 28,114 | 27,253 | 3% |
Subsidiaries:
Mahindra Rural Housing Finance Limited (MRHFL) MMFSL holding 98.43%Q2FY26 Results (in crores) | Q2 FY26 | Q2 FY25 | YoY % | H1FY26 | H1FY25 | YoY% | |
Total Income | 282.7 | 301.7 | (6%) | 572.0 | 604.2 | (5%) | |
Profit Before Tax | 14.6 | 9.5 | 54% | 17.0 | (65.5) | - | |
Profit After Tax | 10.9 | 7.3 | 50% | 12.8 | (49.3) | - | |
Loans & Advances (net) | 7,106 | 7,010 | 1% | 7,106 | 7,010 | 1% | |
Gross Stage 3 % | 2.86% | 9.14% | 2.86% | 9.14% |
Q2FY26 Results (in crores) | Q2 FY26 | Q2 FY25 | YoY % | H1FY26 | H1FY25 | YoY% | |
Total Income | 308.3 | 260.6 | 18% | 627.7 | 547.1 | 15% | |
Profit Before Tax | 28.1 | 18.9 | 49% | 57.0 | 49.0 | 16% | |
Profit After Tax | 20.2 | 12.9 | 57% | 41.0 | 34.2 | 20% | |
Gross Premium | 1,109 | 974 | 14% | 2,263 | 1,983 | 14% |
MMFSL holding 100%
MMFSL holding 51%
Q2FY26 Results (in crores) | Q2 FY26 | Q2 FY25 | YoY % | H1FY26 | H1FY25 | YoY% | |
Total Income | 25.4 | 24.2 | 5% | 54.0 | 43.5 | 24% | |
Profit After Tax | 0.2 | (2.3) | - | 2.2 | (7.3) | - | |
Average Overall AUM | 31,673 | 28,150 | 13% | 30,640 | 25,376 | 21% | |
Average Equity AUM | 29,286 | 25,620 | 14% | 28,161 | 22,957 | 23% |