Date: 21st October 2026

Financial Performance Overview

Mahindra & Mahindra Financial Services Limited (Mahindra Finance) announced its unaudited standalone and consolidated financial results for Q2 FY27 and H1 FY27, ended September 30, 2026.

Standalone Q2 FY27 Performance

  • Profit After Tax (PAT) stood at ₹882 crore, a 55% increase year-over-year (YoY).
  • Return on Assets (ROA) expanded by approximately 53 basis points to 2.2%.
  • Assets Under Management (AUM) grew by 15% YoY to ₹1,46,512 crore.
  • Disbursements increased by 22% YoY to ₹16,499 crore.
  • Total Income was ₹5,175 crore, up 15% YoY.
  • Net Interest Margins (NIM) amounted to ₹2,834 crore, a 17% YoY increase, with the NIM margin percentage stable at 7.0%.
  • Pre-Provisioning Operating Profit (PPOP) was ₹1,791 crore, up 20% YoY.
  • Credit Costs were ₹630 crore, a 16% decrease YoY, with the credit cost percentage moderating to 1.6% from 2.2% in Q2 FY26.

Standalone H1 FY27 Performance

  • PAT for the half-year was ₹1,780 crore, a 62% increase YoY.
  • ROA for H1 stood at 2.3%, compared to 1.6% in H1 FY26.
  • Disbursements for H1 were ₹32,063 crore, up 22% YoY.
  • Total Income was ₹10,149 crore, up 14% YoY.
  • NIM was ₹5,600 crore, a 19% YoY increase, with the margin at 7.1% compared to 6.8% in H1 FY26.
  • PPOP was ₹3,547 crore, up 24% YoY.
  • Credit Costs were ₹1,199 crore, a 15% decrease YoY, with the credit cost percentage at 1.5% compared to 2.0% in H1 FY26.

Capital and Liquidity Position (Standalone)

  • Capital Adequacy Ratio was healthy at 18.0%, with Tier-1 Capital at 16.2%.
  • Prudent Provision Coverage on GS3 (Stage 3 assets) stood at 56.6%.
  • Total liquidity buffer was comfortable at over ₹16,150 crores.

Consolidated Q2 FY27 Performance

  • Total Assets increased by 21% YoY to ₹1,80,292 crore.
  • Total Income was ₹5,962 crore, an 18% increase YoY from ₹5,049 crore in Q2 FY26.
  • PAT was ₹911 crore, a 61% increase YoY from ₹566 crore in Q2 FY26.

Asset Quality and Collections

  • Stage 3 assets improved to 3.4% from 3.9% in Q2 FY26.
  • Stage 2 assets improved to 4.7% from 5.8% in Q2 FY26.
  • Collection efficiency was 97%, compared to 96% in Q2 FY26.

Business Segment Update

Vehicle Business: The company maintained its leadership position in tractor financing and remained among the leading NBFCs for financing passenger vehicles (PVs), used passenger vehicles, and light commercial vehicles (LCVs). The Udaan transformation program is now fully embedded across vehicle lending and collections.

New Engines: Diversification beyond vehicle finance remained a key strategic priority. Non-vehicle finance disbursements grew 52% YoY, including SME, Personal Loans (PL), Others, and Mahindra Rural Housing Finance Limited (MRHFL).

Digital and AI capabilities continued to power customer acquisitions, operational resilience, and collections.

Management Commentary

Raul Rebello, MD & CEO, stated: '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.'