M&M Financial Services jumps as Q2 FY27 disbursements rise 22%

Mahindra & Mahindra Financial Services rose 5.12% to Rs 336.50 after the company provided an update on its business performance for Q2 FY27.

The company estimated overall disbursements at approximately Rs 16,490 crore in Q2 FY27, registering growth of around 22% year-on-year. Disbursements for H1 FY27 are estimated at approximately Rs 32,050 crore, also representing growth of around 22% YoY, excluding finance leases. Disbursements refer to the loans that a financial institution releases to borrowers during a given period.

Business assets stood at approximately Rs 1,46,300 crore as of September 2026, registering growth of around 15% compared with September 2025. Business assets broadly represent the company's lending portfolio and other assets generated through its lending operations.

Collection efficiency improved to an estimated 97% in Q2 FY27 from 96% in Q2 FY26.

Collection efficiency measures the proportion of amounts due that the company successfully collects from borrowers. A higher collection efficiency generally indicates better repayment behaviour among borrowers and supports asset quality.

Asset quality also improved year-on-year. Stage-3 assets were estimated at 3.35%-3.45% as of 30 September 2026, compared with 3.45% as of 30 June 2026 and 3.94% as of 30 September 2025. Stage-2 assets were estimated at 4.7%-4.8%, compared with 4.9% at the end of June 2026 and 5.8% a year earlier.

Stage-3 assets broadly represent loans that have become credit-impaired and are associated with a significant risk of loss. Stage-2 assets are loans where credit risk has increased significantly since the loan was originated but which have not yet become credit-impaired. The decline in Stage-2 and Stage-3 assets compared with a year earlier indicates an improvement in the company's reported asset-quality metrics.

Mahindra & Mahindra Financial Services said it continued to maintain a comfortable liquidity position, with a liquidity chest of more than Rs 16,200 crore.

Mahindra & Mahindra Financial Services is an NBFC within the Mahindra Group, with a focus on vehicle and tractor financing. It also operates in SME lending, mortgages, insurance and investment solutions, primarily serving rural and semi-urban markets. The company has 1,348 offices and serves customers across 5.18 lakh villages and 8,000 towns in India.

On a consolidated basis, total income increased 14% year-on-year to Rs 5,725 crore in Q1 FY27 from Rs 5,013 crore in Q1 FY26. Profit after tax (PAT) rose 75% YoY to Rs 927 crore from Rs 529 crore.

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