Earnings Review
M&M Fincl Q2 PAT up 54% on year, beats Street view
This story was originally published at 19:12 IST on 28 October 2025
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--M&M Fincl Jul-Sept net profit INR 5.69 bln
--Analysts saw M&M Fincl Jul-Sept net profit at INR 5.32 bln
--M&M Fincl Jul-Sept net profit INR 5.69 bln vs INR 3.69 bln year ago
--M&M Fincl Jul-Sept revenue INR 44.73 bln vs INR 39.13 bln year ago
--M&M Fincl Apr-Sept net profit INR 10.99 bln vs INR 8.82 bln year ago
--M&M Fincl Apr-Sept net profit INR 10.99 bln vs INR 8.82 bln year ago
--M&M Fincl Apr-Sept revenue INR 88.92 bln vs INR 76.35 bln year ago
--M&M Fincl gross stage 3 asset ratio 3.94% as on Sept 30 vs 3.85% qtr ago
--M&M Fincl net stage 3 asset ratio 1.89% as on Sept 30 vs 1.91% qtr ago
--M&M Fincl capital adequacy ratio at 19.50% as on Sept 30
--M&M Fincl provision coverage ratio for stage 3 assets at 53% as on Sept 30
--M&M Fincl liquidity coverage ratio at 346% as on Sept 30
--M&M Fincl Jul-Sept net interest income INR 24.06 bln, up 22% on year
--M&M Fincl Jul-Sept net interest margin 7.0% vs 6.5% year ago
--M&M Fincl disbursements INR 135.14 bln as on Sept 30, up 3% on year
--M&M Fincl business AUM INR 1.27 tln as on Sept 30, up 13% on year
By Shakshi Jain
NEW DELHI – Mahindra & Mahindra Financial Services Ltd. Tuesday reported better-than-expected earnings for the September quarter, driven by a double-digit rise in interest income and a sharp uptick in income from fees, charges, and commissions. It was the company's best year-on-year bottom-line performance in three quarters, but the lowest top-line growth in 11 quarters.
The vehicle financier's net profit for the September quarter grew 54% on year to INR 5.69 billion. Analysts had expected the company to report a bottom line of INR 5.32 billion. On a sequential basis, the company's net profit grew almost 8%.
The company's revenue from operations grew over 14% on year and marginally on a sequential basis to INR 44.73 billion in Jul-Sept.
Mahindra & Mahindra Financial's total income grew 14% on year and just over 1% sequentially in Jul-Sept to INR 44.89 billion. Of this, the company's interest income was INR 41.78 billion, up nearly 12% on year but 0.3% sequentially. The shadow bank's income from fees, charges, and commissions grew over 70% on year and nearly 23% sequentially to INR 1.96 billion in the reporting quarter. Its dividend income for the quarter rose more than threefold on year to INR 536.1 billion. On a sequential basis, the dividend income was up 16%.
The company's disbursements rose 3% on year and 6% sequentially to INR 135.14 billion in the September quarter. Within this, disbursements for passenger vehicles grew marginally on year to INR 53.48 billion and for tractors grew 41% on year to INR 17.46 billion. Meanwhile, loans to the three-wheeler segment fell 22% on year to INR 5.03 billion and those for commercial vehicles declined 13% year-on-year to INR 22.93 billion.
The company's net interest income for the September quarter grew 22% on year and 6% sequentially to INR 24.06 billion. This is much higher than the INR 22.32 billion that analysts had pegged. Its collection efficiency remained unchanged year-on-year at 96% in the reporting quarter, but was marginally higher than 95% in the June quarter.
Mahindra & Mahindra Financial's gross stage 3 asset ratio stood at 3.94% as on Sept. 30, compared with 3.85% a quarter ago. The net stage 3 asset ratio was at 1.89% as on Sept 30, compared with 1.91% at the end of the June quarter.
The company's credit cost fell slightly to 2.2% in the September quarter from 2.3% a year ago. The non-banking financial company reported a 50 basis-point year-on-year improvement in net interest margin for the reporting quarter at 7%.
Mahindra & Mahindra Financial's business assets under management grew to INR 1.27 trillion in the September quarter, up 13% on year. The company reported a capital adequacy ratio of 19.5% and a liquidity coverage ratio of 346% as of Sept. 30.
The company's provision coverage on Stage 3 loans was 53% as of Sept. 30. Its impairment on financial instruments in the September quarter was INR 7.51 billion, up from INR 7.03 billion a year ago.
During Apr-Sept, the company's net profit grew 25% on year to INR 10.99 billion and total revenue from operations rose 16% to INR 88.92 billion. Tuesday, shares of Mahindra & Mahindra Financial closed 0.3% higher on the National Stock Exchange at INR 299.90. The company announced its results after market hours. End
Edited by Saji George Titus
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