More Stories

Informist, Monday, Jul. 20, 2026

 

By Diksha Tripathy

 

MUMBAI – Mahindra and Mahindra Financial Services Ltd. is expected to report a sharp on-year rise in its net profit for the June quarter, driven by a robust rise in disbursements and assets under management, brokerages tracking the non-banking financial company said.

 

The Mumbai-based lender is expected to post a net profit of INR 7.94 billion for the June quarter, up nearly 50% on year, but down over 9% on quarter, according to an average of estimates from 15 brokerages. The highest estimate for net profit is INR 8.95 billion from Kotak Securities Ltd. and the lowest is INR 7.11 billion from Elara Securities (India) Pvt. Ltd. For the March quarter, the company had posted a net profit of INR 8.73 billion, up 55% on year, on the back of healthy growth in net interest income.

 

M&M Financial Services' net interest income -- the difference between interest earned and interest expended -- is expected to rise nearly 25% on year and over 5% on quarter to INR 25.11 billion for the June quarter. The highest estimate for net interest income is INR 27.95 billion from Antique Stock Broking Ltd. and the lowest estimate is INR 23.35 billion from Bank of America Global Research. For the March quarter, the company's net interest income had risen to INR 23.91 billion, up almost 4% on quarter and 24% on year.

 

Brokerages attributed the expected rise in the net interest income to sustained business momentum and healthy growth in assets under management of M&M Financial Services. For the June quarter, the assets grew over 12% on year to INR 1.37 trillion, according to the provisional figures released by the company. Total disbursements, excluding finance leases, rose 21% on year to INR 155.60 billion.

 

For the June quarter, the non-banking financial company's collection efficiency was around 95%, unchanged from a year ago. Its liquidity chest at the end of the quarter was over INR 146 billion, which was comfortable, M&M Financial Services had said in a filing.

 

As of Jun. 30, the company's stage-3 assets – the share of loans which are overdue for over 90 days – inched up to 3.4-3.5% from 3.4% as on Mar. 31. Stage-2 assets also rose marginally to 4.9-5.0% as on Jun. 30 from 4.8% as on Mar. 31. However, the asset quality was much better on year, the filing showed. Stage-3 and stage-2 assets were 3.8% and 5.9%, respectively, as of Jun. 30, 2025.

 

Some brokerages expect M&M Financial Services' credit costs to rise between 12 basis points and 40 bps on quarter to nearly 1.9-2.1% of assets under management. However, Prabhudas Lilladher Pvt. Ltd. and IDBI Capital Market Services Ltd. expect credit costs to ease for the June quarter. For the March quarter, M&M Financial Services' credit cost was 1.5%, up from 1.4% a year ago.

 

The company's net interest margin for the June quarter is expected to decline 6-15 bps, brokerages said. In the trailing quarter, the net interest margin had risen nearly 101 bps on year to 7.5%. Market participants will closely watch the management's comments on net interest margin sustainability, growth diversification across small and medium enterprises, used vehicles, and mortgages.

 

The company will detail its earnings on Tuesday. M&M Financial Services' shares have risen 1.3% since its March quarter earnings were announced on Apr. 24.  At 1115 IST, its shares were at INR 320.80 on the National Stock Exchange, down over 1% from Friday.

 

Of the 17 brokerage reports on the company available with Informist, 16 have a "buy" recommendation on the stock with an average target price of INR 354 per share. This is nearly 10% higher than the current market price. One brokerage has a "hold" recommendation with a target price of INR 335 per share.

 

Following are the Apr-Jun earnings estimates, in INR billion, for M&M Financial Services from 15 brokerages, in descending order of net profit estimate:

 

Brokerage	NII	Net profit
Kotak Securities Ltd.	24.77	8.95
ICICI Securities Ltd.	24.60	8.87
PhillipCapital (India) Pvt. Ltd.	25.32	8.83
IDBI Capital Market Services Ltd.	24.19	8.83
Nirmal Bang Equities Pvt. Ltd.	24.35	8.80
Antique Stock Broking Ltd.	27.95	8.04
Prabhudas Lilladher Pvt Ltd.	23.92	7.93
Anand Rathi Share and Stock Brokers Ltd.	25.95	7.76
YES Securities (India) Ltd.	27.46	7.67
Motilal Oswal Financial Services Ltd.	24.31	7.49
Bank of America Global Research	23.35	7.23
Nuvama Wealth Management Ltd.	24.08	7.21
Nomura Financial Advisory and Securities (India) Pvt. Ltd.	23.90	7.17
JM Financial Institutional Securities Pvt. Ltd.	26.94	7.15
Elara Securities (India) Pvt. Ltd.	25.92	7.11
Average	25.13	7.94

 

End

 

Edited by Himanshi Gupta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.