Analyst Concall
M&M Financial plans to expand SME business
This story was originally published at 22:42 IST on 28 January 2026
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--M&M Fincl: Have much more prolific plans for SME business
--CONTEXT: Comments from M&M Fincl mgmt in post earnings analyst call
--M&M Fincl: See competition intensifying in declining interest rate cycle
--M&M Fincl: Fee-based income continues to be focus area
--M&M Fincl: Q4 may not show same level of growth as Q3
By Shruti Nair and Sagar Sen
MUMBAI – Mahindra and Mahindra Financial Services Ltd. plans to expand its mortgage and small and medium enterprises businesses in an effort to diversify, the management said in its post-earnings call Wednesday.
The financier's disbursements for the December quarter rose 30% sequentially and 7% on year to INR 176 billion. Of this, disbursements in the small and medium enterprise segment were INR 7.32 billion, down 1% sequentially but up 4% on year. The management highlighted disbursements in the tractor segment, which grew 65% to INR 32.42 billion.
The company's net profit for the December quarter was INR 8.10 billion, down nearly 10% on year but up over 42% on quarter. Analysts had estimated the bottom line to be INR 7.36 billion.
The management said they expect to see intensified competition in the declining interest rate environment as cost of funds fall. The company's loan income has fallen 20 basis points, but the increase in fee income by 30 basis points has offset the decline, the management said.
Fee-based income will continue to be a focus area, according to the management. They said that a major source of fee income is its wholly-owned subsidiary Mahindra Insurance Brokers Ltd. They highlighted that the subsidiary is looking at insurance distribution beyond the M&M ecosystem. "So, think about all the opportunities of insurance distribution which is available, not limited to the M&M ecosystem is basically being harnessed by MIBL (Mahindra Insurance Brokers Ltd.)," the management said.
The management is optimistic about the March quarter due to traction in the smaller vehicle segment and rural geographies. However, they do not expect the upcoming quarter to show the same levels of growth as the December quarter which enjoyed the tailwinds of pent-up demand for vehicles in September.
Wednesday, shares of M&M Financial closed nearly 2% higher at INR 370.15 on the National Stock Exchange. The company announced its results after market hours. End
Edited by Ashish Shirke
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