Raul Rebello, Managing Director and Chief Executive Officer, Mahindra Finance
Mahindra & Mahindra Financial Services reported a 70 per cent year-on-year (y-o-y) increase in standalone profit after tax to ₹899 crore for the quarter ended June 30, as business AUM rose 13 per cent to ₹1,37,449 crore and disbursements reached a record first-quarter level.Disbursements increased 22 per cent to ₹15,564 crore from ₹12,808 crore a year earlier, while AUM grew from ₹1,22,008 crore. The net interest margin expanded to 7.3 per cent from 6.7 per cent and credit costs declined to 1.5 per cent from 1.9 per cent. Pre-provisioning operating profit rose 30 per cent to ₹1,756 crore, while return on assets improved to 2.4 per cent from 1.6 per cent.“Our performance this quarter underscores the strength of our franchise, with continued expansion in profitability, resilient asset quality and progress in our pivot towards growth agendas,” Raul Rebello, Managing Director and Chief Executive Officer, Mahindra Finance, said. “Our focused investments in our core vehicle franchise, new growth engines and technology are supporting profitable and disciplined growth.”Consolidated profit after tax increased 75 per cent to ₹927 crore, while total income rose 14 per cent to ₹5,725 crore.ASSET QUALITYThe company’s asset-quality indicators also improved. Stage 3 assets declined to 3.5 per cent in the first quarter from 3.8 per cent a year earlier, while Stage 2 assets fell to 4.9 per cent from 5.9 per cent. Collection efficiency remained steady at 95 per cent.The quarterly performance builds on the foundation highlighted by Mahindra Finance Chairman Anish Shah in his letter to shareholders for the company’s annual general meeting. He said the company had focused on enterprise management, internal controls, compliance and world-class risk processes during FY26.The AGM letter said Mahindra Finance’s gross Stage 3 assets had improved to 3.4 per cent during FY26, while AUM grew 12 per cent to ₹1.34 lakh crore and consolidated profitability rose 27 per cent for the year.DIVERSIFICATIONThe company is also attempting to reduce its dependence on vehicle finance.Non-vehicle finance disbursements, including Mahindra Rural Housing Finance, grew 79 per cent year-on-year during the quarter. Fee-based income also continued to expand.Vehicle finance remains the core business, with tractor disbursements rising 45 per cent and passenger-vehicle disbursements increasing 24 per cent. Mahindra Finance said its Udaan transformation programme is now embedded across vehicle lending, servicing and collections.Shah’s letter described Project Udaan as a key part of the company’s digital and operating transformation. Data analytics and artificial intelligence are being used to improve credit decisions, identify risks, increase productivity and strengthen customer experience.The company’s capital adequacy ratio stood at 18.5 per cent, with Tier-I capital at 16.5 per cent. Provision coverage on Stage 3 assets was 58 per cent, while the liquidity buffer remained comfortable at more than ₹14,650 crorePublished on July 21, 2026
