Mahindra Finance Q1FY26 results: Net profit rises 3% to ₹530 crore

Mahindra Finance posted a 3% increase in net profit for Q1 FY26, but a 6% decline on a sequential basis. Total income grew by 18% YoY to Rs 4,438 crore

Mahindra & Mahindra Financial Services reported a 3 per cent increase in net profit for the quarter ended June, reaching Rs 530 crore. However, on a sequential basis, the net profit declined by 6 per cent, the company said in a regulatory filing.

 

The total income of the non-banking financial company (NBFC) increased by 18 per cent YoY to Rs 4,438 crore in the quarter ended June 2025, while total expenses rose by 22 per cent to Rs 3,744 crore.

 

Net interest income (NII) in Q1 FY26 stood at Rs 2,285 crore, up 18 per cent YoY. Credit costs increased to Rs 660 crore in Q1 from Rs 448 crore.

 

 

Disbursements during the quarter were Rs 12,808 crore, registering a 1 per cent YoY growth. However, disbursements declined by 18 per cent on a sequential basis.

 

The company’s asset book for micro, small, and medium enterprises (MSMEs) expanded by 28 per cent YoY to Rs 6,523 crore as of June 30, 2025. “The growth is driven by secured offerings such as Loan Against Property (LAP), which now accounts for 44 per cent of total SME assets, compared to 33 per cent last year. Asset quality in this segment remains strong, with Stage 3 assets at 1.4 per cent as of the quarter-end,” the company said.

 

Collection efficiency improved marginally to 95 per cent, up from 94 per cent in Q1 FY25, indicating stability in customer repayments.

 

The gross loan book stood at Rs 1.22 trillion as of June 30, 2025, up 15 per cent YoY, and up by just 2 per cent on a quarter-to-quarter basis. The slowdown in disbursements was attributed to moderate growth in the underlying wheels business, the company added.

 

On Tuesday, the company’s shares closed 1 per cent higher at Rs 265.60 per equity share.