MMFSL’s Interest Income Advances 15%
FinTech BizNews Service
Mumbai, July 22, 2025: The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance / MMFSL), a leading provider of financial services in Emerging India, at its meeting held today, announced the unaudited financial results for the quarter ended June 30, 2025 (Q1 FY26).
Standalone:
Key Highlights: MMFSL reported a 3% year-on-year (YoY) growth in Profit After Tax (PAT) for the quarter ended June 30, 2025. The Company’s loan book grew by 15% YoY and disbursements grew at 1% YoY with underlying wheels business seeing a moderate growth in the current quarter. MMFSL’s Asset quality remained within the guided range, with GS3 at 3.8% and GS2+GS3 at 9.7%. The credit cost for quarter ended June 30, 2025, was at 1.9%.
Capital Adequacy healthy at 20.6%, Tier-1 Capital @17.9%. Provision coverage on Stage 3 loans prudent at 51.4 %. Total liquidity buffer comfortable at over ~ Rs10,100 crores.
Operations:
Mahindra Finance recorded disbursements of Rs12,808 crore, reflecting a 1% YoY growth. While the overall
disbursement growth was relatively subdued, tractor disbursements grew 21% YoY. The company’s business
assets grew by 15% YoY, reaching Rs1,22,008 crore as of June 30, 2025, demonstrating strength in the
underlying portfolio. Collection efficiency marginally improved to 95%, up from 94% in Q1 FY25, indicating
stability in customer repayments.
The company continued to maintain underwriting discipline and a proactive approach to early-stage
delinquencies. Stage 3 assets stood at 3.8%, slightly higher than the 3.7% reported in March 2025, while Stage
2 assets were contained at 5.85%. As targeted, the Company has been able to maintain GS3+GS2 below 10%.
Liquidity remained strong, with a liquidity chest of over Rs10,100 crore ensuring financial flexibility.
CORE
Wheels Business:
Mahindra Finance continues to maintain its leadership position in tractor financing and is ranked among the
top five NBFCs for financing passenger vehicles (PVs), light commercial vehicles (LCVs), small commercial
vehicles (SCVs), tractors, used PVs, and three-wheelers.
Building on the transformation journey initiated in FY25, the company is further strengthening its product-
led collections strategy, with a sharper focus on reducing high-risk portfolios. Digitally enabled field
operations, AI-driven early warning systems, and self-service platforms are playing a pivotal role in improving
delinquency management and enhancing customer engagement.
To drive greater operational efficiency, Mahindra Finance has evolved its operating model to include
migration to a new Cloud based Loan Management system (LMS), the establishment of 2 fully operational
centralized processing centers, and a more streamlined retail branch structure, all of which are designed to
deliver a more smooth and consistent customer experience.
NEW ENGINES
Diversification beyond vehicle finance remains a key strategic priority for Mahindra Finance. The company is
steadily expanding its presence across SME lending, leasing through Quiklyz, and fee-based income through
insurance and investment products by robust investments in technology, analytics, and channel
development. The non-vehicle finance portfolio continues to grow by 30% YoY further diversifying its asset
base.
SME:
The company recognizes the growth potential within the MSME sector in India, with specific focus on the
micro and small enterprises segment. Asset book expanded by 28% on a YoY basis and was at Rs6,523 crore
as of June 30, 2025. The growth is driven by secured offerings such as Loan Against Property (LAP), which
now accounts for 44% of total SME assets as compared to 33% last year. Asset quality in this segment remains
strong, with Stage 3 assets at 1.4% as of the quarter-end.
Leasing:
The leasing business continued to gain momentum, driven by strong growth in the B2B segment and a
measured expansion in the B2C space. Mahindra Finance remained focused on enhancing customer
engagement through digitized platforms, dedicated account managers, and deeper integration with
ecosystem partners.
Insurance:
The company has partnered with ten leading insurance providers across life, non-life, and health categories
with the objective of offering comprehensive insurance solutions to customers. The company witnessed
encouraging adoption of its digital insurance portal launched in the previous quarter. Covering life, health,
and general insurance categories, the portal now allows customers to generate quotes, submit proposals,
and make digital payments seamlessly. Strengthening employee training on regulatory compliance and
responsible insurance selling remains a key focus area.
Mahindra Finance is one of the few deposit taking NBFCs. The company’s FDs are an attractive investment
avenue, with a AAA Rating by CRISIL & India Ratings indicating highest safety standards.
Looking ahead, Mahindra Finance remains committed to sustaining growth in its core vehicle finance
portfolio while accelerating its expansion across non-vehicle segments. With a focused push on MSME and
LAP financing, continued digital transformation, and a strong emphasis on enhancing customer experience,
the company is well-positioned to drive balanced and sustainable growth through FY26 and beyond
Consolidated:
Q1FY26 Consolidated Results
Subsidiaries:
Mahindra Rural Housing Finance Limited (MRHFL)
Mahindra Insurance Brokers Limited (MIBL)
Mahindra Manulife Investment Management Private Limited (MMIMPL)
