Mahindra & Mahindra Financial Services reported a year-on-year increase in net profit and net interest income (NII) for the second quarter of FY27, with both key financial metrics registering growth compared with the corresponding period last year.
Net profit rose 55% to ₹882 crore in Q2 FY27 from ₹569 crore in the year-ago period. Net interest income increased 13.2% to ₹2,391 crore from ₹2,112 crore in the corresponding quarter last year.
Total income rose 18% year-on-year to ₹5,962 crore in Q2 FY27, compared with ₹5,049 crore in the corresponding quarter last year. Total assets increased 21% to ₹1,80,292 crore.
Disbursements rise 22% year-on-year
Mahindra Finance recorded quarterly disbursements of ₹16,499 crore, up 22% year-on-year. Business assets grew 15% to ₹1,46,512 crore.
The company’s asset quality indicators improved during the quarter. Stage 3 assets declined to 3.4% from 3.9% in Q2 FY26, while Stage 2 assets fell to 4.7% from 5.8% a year earlier.
Collection efficiency improved to 97% from 96% in the year-ago quarter.
Non-vehicle finance disbursements grow 52%
The company said it continued to focus on its vehicle finance business, including tractor, passenger vehicle, used passenger vehicle and light commercial vehicle financing.
Mahindra Finance’s non-vehicle finance disbursements grew 52% year-on-year. This segment includes small and medium enterprise (SME) loans, personal loans, other businesses and Mahindra Rural Housing Finance Limited (MRHFL).
The company also said its Udaan transformation programme was fully embedded across vehicle lending and collections, while digital and artificial intelligence capabilities continued to support customer acquisition, operations and collections.
Speaking on the results, Raul Rebello, MD & CEO, Mahindra Finance said: “Our Q2 performance gives us further confidence that the changes we have been making are translating into stronger and more consistent business outcomes.”
He added that with disbursements up 22% on broad-based growth, credit costs contained at 1.6%, and profit growth of 55%, they are encouraged by the momentum and remain focused on disciplined execution towards their FY31 ambitions.
Mahindra & Mahindra Financial Services shares fell 2.26% to ₹298, down ₹6.90, on Wednesday ahead of the company’s Q2 earnings announcement.
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