M&M Financial shares jumps 10% after Q4 profit surges 55% YoY to Rs 873 crore

Mahindra & Mahindra Financial Services shares surged 10% to Rs 325 in Monday’s trading session, as investors cheered a strong Q4 performance that highlighted the company’s growth momentum and resilience.

The Mahindra Group-backed NBFC reported a sharp 55% year-on-year (YoY) jump in standalone net profit to Rs 873 crore for the March quarter, compared to Rs 563 crore a year ago. The strong bottom-line performance was supported by steady business momentum, margin expansion, and disciplined cost management.

Operationally, the company remained on a solid footing. Assets under management (AUM) grew 12% YoY, while disbursements rose 11%. Net interest margins (NIM) expanded significantly by around 101 basis points to 7.5%, reflecting improved yields and a lower cost of funds. Credit costs remained largely stable at 1.5% for the quarter.


For the full financial year FY26, Mahindra Finance reported a 19% YoY increase in profit after tax to Rs 2,782 crore, up from Rs 2,345 crore. Annual disbursements grew 6%, while margins strengthened, supported by higher fee income and lower funding costs. Asset quality remained stable within guidance, with GS3 at 3.4% and GS2+GS3 at 8.2%, reflecting disciplined risk management.

Business momentum remained healthy despite external uncertainties. Quarterly disbursements stood at Rs 17,184 crore, up 11% YoY, aided by sustained demand following GST rate cuts. Notably, tractor financing emerged as a standout segment, with disbursements surging 63% YoY. Overall business assets climbed 12% to Rs 1.34 lakh crore, driven by growth across tractors, passenger vehicles, and MSME-focused secured lending.

Mahindra Finance also maintained its leadership in tractor financing and continued to rank among the top NBFCs in passenger vehicle, light commercial vehicle, and used vehicle financing.

A key highlight was the company’s ongoing diversification beyond vehicle financing. Its non-vehicle finance portfolio expanded 32% YoY, with growing contributions from SME lending, mortgages, leasing, and fee-based businesses such as insurance and investment products. Fee income, in particular, has been on an upward trajectory, aligning with the company’s strategy to strengthen non-interest revenue streams.

Within the SME segment, the company is tapping into India’s MSME growth story. The SME loan book stood at Rs 8,090 crore as of March 31, 2026, marking a 32% YoY increase. Growth was largely driven by the Loan Against Property (LAP) portfolio, which surged 41% over the same period.

Overall, Mahindra Finance’s Q4 performance reflects a balanced mix of growth, profitability, and strategic diversification, factors that appear to have struck the right chord with investors.

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