Mahindra & Mahindra Financial Services (Mahindra Finance) on Wednesday reported a 55 per cent year-on-year (YoY) rise in standalone net profit to ₹882 crore for the July-September quarter of FY27 (Q2FY27).
Total income rose 15 per cent YoY to ₹5,175 crore, while disbursements grew 22 per cent to ₹16,499 crore during the quarter.
Net interest margin (NIM) remained flat at 7 per cent in Q2FY27 compared with the year-ago quarter.
Business assets under management (AUM) increased 15 per cent YoY to ₹1.46 trillion. Credit costs declined to 1.6 per cent of average assets in Q2FY27 from 2.2 per cent a year ago.
The non-banking financial company’s (NBFC’s) asset quality improved during the quarter. Stage 3 assets declined to 3.4 per cent from 3.9 per cent a year ago, while Stage 2 assets fell to 4.7 per cent from 5.8 per cent. Collection efficiency improved to 97 per cent from 96 per cent in Q2FY26.
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The company’s capital adequacy ratio stood at 18 per cent, with Tier-I capital at 16.2 per cent.
Diversification beyond vehicle finance continued to gain traction, with disbursements in non-vehicle finance businesses growing 52 per cent YoY. These businesses include SME lending, personal loans, other segments and Mahindra Rural Housing Finance (MRHFL).
“Our Q2 performance gives us further confidence that the changes we have been making are translating into stronger and more consistent business outcomes. With disbursements up 22% on broad-based growth, credit costs contained at 1.6%, and profit growth of 55%, we are encouraged by the momentum and remain focused on disciplined execution towards our FY31 ambitions,” Raul Rebello, managing director and chief executive officer of Mahindra Finance, said.