Loan growth, lower cost targets positive for M&M Financial Services

Mahindra & Mahindra Financial Services or M&MFS may enjoy favourable tailwinds in the second half of financial year 2026 (H1FY26) with rising demand for its core line of vehicle finance and also lower cost of finance.

 

Also, while it has high credit costs, the asset quality has improved with accelerated write offs.  

 

MMFS has a deep rural presence across 500,000 villages, and a 12 million customer base.

 

It is ideally positioned to benefit from stronger rural demand. The long-term target is to push assets under management or AUM to over ₹3 trillion by 2030 from the current ₹1.27 trillion.

 

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