Mahindra & Mahindra Financial Services Limited – Investor Presentation Summary

Key Operational Highlights

  • Total disbursals of ₹15,564 crore in Q1 FY27, representing 22% YoY growth
  • Core business disbursals grew 20% YoY while new growth engines grew 46% YoY
  • Collection efficiency remained strong at 95% for Q1 FY27
  • Number of employees: 22,662 (standalone) as of June 2026

Key drivers of operational performance: Growth driven by strong performance in tractor financing (45% YoY increase), SME loans (30% YoY increase), and personal loans/others category (77% YoY increase).

Segment-wise Performance

  • Passenger vehicles: ₹6,525 crore disbursals (42% of total), 24% YoY growth
  • Pre-owned vehicles: ₹2,526 crore disbursals (16% of total), 16% YoY growth
  • CV & CE: ₹2,292 crore disbursals (15% of total), -3% YoY decline
  • Tractors: ₹2,480 crore disbursals (16% of total), 45% YoY growth
  • 3-Wheeler: ₹539 crore disbursals (3% of total), 9% YoY growth
  • SME: ₹683 crore disbursals (4% of total), 30% YoY growth
  • Others (Farm implements, Gensets, Personal Loans): ₹520 crore disbursals (3% of total), 77% YoY growth

Explanation of significant changes in segment performance: Tractor segment showed strongest growth at 45% YoY, while CV & CE segment declined slightly by 3% YoY. Personal loans and other categories showed exceptional growth of 77% YoY.

Financial Highlights

Revenue: ₹4,972 crore

NII: ₹2,764 crore

PAT: ₹899 crore

EPS: ₹6.47 (Basic)

Margins: ROA at 2.4%, RONW at 14.3% (annualized)

YoY/QoQ comparison: PAT up 70% YoY (from ₹530 crore in Q1 FY26) and up 3% QoQ (from ₹873 crore in Q4 FY26)

Drivers of financial performance: Higher revenue growth (13% YoY), controlled expenses (8% YoY increase), and lower provisions (-14% YoY)

Geographical Revenue Split

Business assets distribution across regions:

  • Delhi region (Chandigarh, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Punjab, Uttarakhand): Not specified percentage
  • Jaipur region (Rajasthan, Gujarat, Dadra & Nagar Haveli): Not specified percentage
  • Lucknow region (Uttar Pradesh, Bihar): Not specified percentage
  • Thane region (Maharashtra, Goa, Madhya Pradesh): Not specified percentage
  • Chennai region (Andaman & Nicobar Island, Karnataka, Kerala, Puducherry, Tamil Nadu): Not specified percentage
  • Hyderabad region (Andhra Pradesh, Telangana, Orissa, Chhattisgarh): Not specified percentage
  • Kolkata region (Arunachal Pradesh, Assam, Meghalaya, Mizoram, Manipur, Sikkim, Tripura, West Bengal, Jharkhand): Not specified percentage

Balance Sheet Snapshot

Net Debt/Equity: 5.00:1

Capital Adequacy: 18.5% (Tier I: 16.5%, Tier II: 2.1%)

Book Value: ₹184.7 per share

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Strong capital adequacy at 18.5%, adequate liquidity with cash/liquid investments over ₹14,650 crore

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not specified

Investment Rationale: Focus on expanding digital and phygital customer convenience, AI-powered reach

Strategic & R&D Initiatives

Investments in Innovation: Digital + AI powered reach expansion, phygital customer convenience platforms

Expected impact on growth: Not specified

Strategic Rationale: Expanding deep local presence to serve Bharat market more effectively

Industry Trends & Business Environment

Macro/Industry Trends: Not specified

Impact on Company: Not specified

Management Commentary & Growth Outlook

Strategic Outlook: "Pivoting to growth" with core business disbursals up 20% YoY and new growth engines up 46% YoY

FY Guidance: Not specified

Market Share Targets: Not specified

Risks and Opportunities: Company notes forward-looking statements are subject to various risks and uncertainties including economic and political conditions in India, interest rate volatility, new regulations and government policies

Subsidiary Performance

Mahindra Rural Housing Finance Limited:

  • Loans disbursed: ₹1,143 crore in Q1 FY27 vs ₹501 crore in Q1 FY26
  • Loans & Advances (net): ₹8,976 crore
  • PAT: ₹30 crore vs ₹2 crore in Q1 FY26
  • Gross Stage 3: 2.41% vs 8.26% in Q1 FY26
  • Operating in 16 States & 3 Union Territories

Mahindra Insurance Brokers Limited:

  • Net Premium: ₹1,161 crore in Q1 FY27 vs ₹977 crore in Q1 FY26
  • Total income: ₹463 crore vs ₹319 crore in Q1 FY26
  • PAT: ₹38 crore vs ₹21 crore in Q1 FY26
  • Wholly owned subsidiary (100%)

Mahindra Ideal Finance PLC (Sri Lanka):

  • Loans disbursed: LKR 9,423 Mn in Q1 FY27 vs LKR 11,228 Mn in Q1 FY26
  • Loans & Advances (net): LKR 28,447 Mn
  • PAT: LKR 98 Mn vs LKR 90 Mn in Q1 FY26
  • Gross Stage 3: 2.2% vs 1.8% in Q1 FY26
  • 38 branches across Sri Lanka
  • MMFSL holds 58.2% stake

Credit Ratings

  • Short term Bank Facility & Commercial Paper: CRISIL A1+
  • Long term Bank Facility; Non-Convertible Debenture and Subordinated debt; Fixed Deposit: CRISIL AAA/Stable
  • Long term Non-Convertible Debenture and Subordinated debt: CARE AAA/Stable
  • Long term Subordinated debt: BWR AAA/Stable

CSR Initiatives

  • Dhan Samvaad: >2,40,000 beneficiaries - financial literacy program
  • Mahindra Pride: >1,14,000 female students - skills enhancement
  • Nanhi Kali: >26,500 underprivileged girl students educated
  • Saksham Scholarship: >5,900 students provided financial assistance
  • Water Conservation Project: >3.74 Cr liters rainwater conserved annually

Awards & Recognitions (Q1 FY27)

  • ET Future Skills Awards 2026: Silver Award in Community Skilling & Societal Impact
  • Indian Tractor of the Year 2026: Best Digital Transformation in Tractor Finance
  • The Great Indian BFSI & Fintech Awards 2026: Supporting Rural/Bharat Adoption of the Year
  • TransUnion CIBIL: Operational Excellence & Improvement in Bureau Disputes