Mahindra & Mahindra Financial Services
The income from operation of Mahindra & Mahindra Financial Services increased 13.37% to Rs 5538.73 crore in Q4FY2026. The revenue of Financing Activities (91.85% of total revenues) segment has gone up 12.64% to Rs 5,140.86 crore. The revenue of Others (8.15% of total revenues) segment has gone up 32.55% to Rs 455.95 crore.
PBIT of Financing Activities segment rose 107.43% to Rs 1,185.34 crore (accounting for 94.14% of total PBIT). PBIT of Others segment rose 93.87% to Rs 73.73 crore (accounting for 5.86% of total PBIT).
The Capital employed for Financing Activities (97.08% of total) segment has gone up 27.20% to Rs 24,670.62 crore. The Capital employed for Others (2.92% of total) segment has gone up 6.51% to Rs 741.03 crore.
Overall OPM has increased to 73.94% in Q4FY2026 from 73.31% in Q4FY2025, leading to 14.35% rise in operating profit to Rs 4,095.49 crore. Other expenditure as a percentage of total income moved up to 14.48% from 14.25% in Q4FY2026. The staff cost as a percentage of total income declined to 11.58% from 12.45% in Q4FY2026.
Other income increased 85.46% to Rs 20.79 crore. Interest cost increased 0.10% to Rs 2219.88 crore. Depreciation moved up 30.27% to Rs 110.1 crore. Provisions declined 22.02% to Rs 543.30 crore. PBT moved up 109.40% to Rs 1,243.00 crore.
The effective tax rate declined to 25.63% in Q4FY2026 compared to 25.82% in Q4FY2025. Provision for tax was expense of Rs 318.59 crore, compared to Rs 153.28 crore. Profit after tax rose 109.94% to Rs 924.41 crore.
Profit attributable to non-controlling interest of Rs 2.46 crore as compared to Loss of Rs 1.03 crore. The share of profit of associate companies increased 1.32% to Rs 16.07 crore. Finally, Net profit attributable to owners moved up 105.16% to Rs 938.02 crore.
Business highlights
The company recorded disbursements of Rs 17184 crore in Q4FY26, reflecting a 11% YoY growth.
The gross loan book grew by 12% YoY, reaching Rs 134096 crore at end March 2026.
Asset quality improved with reduction in GS3 to 3.4% and GS2+GS3 at 8.20%. The credit cost for Q3FY2026 was at 1.5%
Capital Adequacy healthy at 18.8%, Tier-1 Capital at 16.7%. Provision coverage on Stage 3 loans prudent at 58.6%.
Financial performance FY2026
The income from operation of Mahindra & Mahindra Financial Services increased 13.77% to Rs 21005.37 crore in FY2026.
The revenue of Financing Activities (92.84% of total revenues) segment has gone up 13.98% to Rs 19,774.61 crore. The revenue of Others (7.16% of total revenues) segment has gone up 22.63% to Rs 1,524.08 crore.
PBIT of Financing Activities segment rose 25.57% to Rs 3,641.94 crore (accounting for 95.19% of total PBIT). PBIT of Others segment rose 45.40% to Rs 183.96 crore (accounting for 4.81% of total PBIT).
The Capital employed for Financing Activities (97.08% of total) segment has gone up 27.20% to Rs 24,670.62 crore. The Capital employed for Others (2.92% of total) segment has gone up 6.51% to Rs 741.03 crore.
Overall OPM has increased to 74.32% in FY2026 from 74.29% in FY2025, leading to 13.81% rise in operating profit to Rs 15,610.34 crore. Other expenditure as a percentage of total income moved up to 13.74% from 12.95% in FY2026. The staff cost as a percentage of total income declined to 11.95% from 12.75% in FY2026.
Other income increased 20.78% to Rs 81.36 crore. There is 6.16% rise in interest cost at Rs 8933.56 crore and 20.20% rise in depreciation to Rs 386.08 crore. Provisions increased 19.06% to Rs 2,482.85 crore. Profit before tax increased 31.32% to Rs 3,889.21 crore. There was an extraordinary expense of 132.95 crore against nil in previous year. After which, PBT increased 26.83% to Rs 3,756.26 crore.
The effective tax rate declined to 25.68% in FY2026 compared to 25.87% in FY2025. Provision for tax was expense of Rs 964.79 crore, compared to Rs 766.04 crore. Profit after tax rose 27.14% to Rs 2,791.47 crore.
Profit attributable to non-controlling interest of Rs 6.58 crore as compared to Loss of Rs 1.00 crore. The share of profit of associate companies increased 6.76% to Rs 69.64 crore. Finally, Net profit attributable to owners rose 26.20% yoy to Rs 2,854.53 crore in FY2026.
| Mahindra & Mahindra Financial Services: Consolidated Results | ||||||
| Particulars | 2603 (3) | 2503 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Income from Operations | 5538.73 | 4885.63 | 13.37 | 21005.37 | 18463.10 | 13.77 |
| OPM (%) | 73.94 | 73.31 | 64 bps | 74.32 | 74.29 | 3 bps |
| OP | 4095.49 | 3581.44 | 14.35 | 15610.34 | 13716.32 | 13.81 |
| Other Inc. | 20.79 | 11.21 | 85.46 | 81.36 | 67.36 | 20.78 |
| PBDIT | 4116.28 | 3592.65 | 14.58 | 15691.70 | 13783.68 | 13.84 |
| Interest | 2219.88 | 2217.77 | 0.1 | 8933.56 | 8415.43 | 6.16 |
| PBDT | 1896.40 | 1374.88 | 37.93 | 6758.14 | 5368.25 | 25.89 |
| Depreciation | 110.10 | 84.52 | 30.27 | 386.08 | 321.21 | 20.2 |
| Profit before Tax & Provisions | 1786.30 | 1290.36 | 38.43 | 6372.06 | 5047.04 | 26.25 |
| Provisions | 543.30 | 696.75 | -22.02 | 2482.85 | 2085.36 | 19.06 |
| PBT before EO | 1243.00 | 593.61 | 109.4 | 3889.21 | 2961.68 | 31.32 |
| EO | 0.00 | 0.00 | - | -132.95 | 0.00 | - |
| PBT after EO | 1243.00 | 593.61 | 109.4 | 3756.26 | 2961.68 | 26.83 |
| Tax Expenses | 318.59 | 153.28 | 107.85 | 964.79 | 766.04 | 25.95 |
| PAT | 924.41 | 440.33 | 109.94 | 2791.47 | 2195.64 | 27.14 |
| Profit attributable to non-controlling interest | 2.46 | -1.03 | PL | 6.58 | -1.00 | PL |
| Share of Profit/(Loss) from Associates | 16.07 | 15.86 | 1.32 | 69.64 | 65.23 | 6.76 |
| Net profit attributable to owners | 938.02 | 457.22 | 105.16 | 2854.53 | 2261.87 | 26.2 |
| EPS (Rs)* | 27.0 | 14.8 | ? | 21.3 | 18.3 | ? |
| Equity | 277.9 | 247.0 | ? | 277.9 | 247.0 | ? |
| Adj BV (Rs) | 177.5 | 156.0 | ? | 177.5 | 156.0 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year, excluding EO and relevant tax. Face Value: Rs 2, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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