Mahindra & Mahindra Financial Services Ltd.Mahindra Finance: PAT +55% to ₹882 Cr, stress at record low

Mahindra & Mahindra Financial Services' Q2 FY27 call, held on 21 October 2026, showed a lender turning steady growth into profit.

Profit after tax rose 55% to ₹882 crore on 22% disbursement growth and 15% growth in assets under management, now about ₹1,56,000 crore. Asset quality reached an all-time low, with GS2 plus GS3 assets at 8.1% and credit cost at 1.6%, inside the 1.3% to 1.7% range. Non-wheels lending grew 52% and the housing finance subsidiary earned ₹35 crore. Management held an ₹852 crore overlay and doubled its liquidity buffer, which weighs on returns.

Return on assets was 2.2% in the quarter and 2.3% for the half. It warned that the cost of funds will rise after a rate hike, that a draft insurance rule could cut fee income, and that drought in 282 districts is being watched, with tractors the category to watch. It said 70% profit growth is not sustainable and kept its 16% to 18% growth aim. No earlier promises were on file for comparison.