Net interest income (NII) for the quarter rose 24.8% to ₹2,709.3 crore from ₹2,171.2 crore a year ago. Assets under management (AUM) increased 12% year-on-year, while disbursements rose 11% during the quarter. Net interest margin (NIM) expanded about 101 basis points year-on-year to 7.5%, and credit cost stood at 1.5% in Q4F26 versus 1.4% in Q4F25, including overlays.
For the full year, profit after tax grew 19% year-on-year after accounting for labour code impact and management overlays. Annual disbursements rose 6% year-on-year, while NIMs expanded, supported by higher fee income and lower cost of funds.
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Credit cost stood at 1.7% for FY26, reflecting provisioning along with overlays. Asset quality remained within the guided range, with GS3 at 3.4% and GS2 plus GS3 at 8.2%, supported by sourcing standards and collection efficiency.
The company maintained a capital adequacy ratio of 18.8%, with Tier-1 capital at 16.7%. Provision coverage on GS3 stood at 59% through management overlays, while liquidity buffers were comfortable at over ₹9,100 crore.
On overall business performance, quarterly disbursements stood at ₹17,184 crore, up 11% year-on-year, despite geopolitical headwinds, with demand supported by GST rate cuts. Tractor disbursements rose 63% year-on-year in the quarter, reflecting a shift towards profitable growth. Business assets reached ₹1,34,096 crore, growing 12% year-on-year, driven by tractors, passenger vehicles, and MSME-led secured lending.
Asset quality improved both sequentially and year-on-year, with Stage 3 assets at 3.4% and Stage 2 at 4.8%, indicating better slippage control. Collection efficiency improved to 98% in Q4FY26 from 97% in Q4FY25, supported by digital workflows, data-led prioritisation, and focus on early delinquencies.
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In the SME segment, the asset book stood at ₹8,090 crore as of March 31, 2026, growing 32% year-on-year, led by Loan Against Property, which increased 41% year-on-year.
Consolidated Results
The company reported consolidated total income growth of 14% year-on-year to ₹5,560 crore for the quarter ended March 31, 2026, compared with ₹4,897 crore in the corresponding quarter last year. Net profit for the quarter stood at ₹940 crore, against ₹456 crore a year earlier.
For FY26, consolidated total income rose 14% year-on-year to ₹21,087 crore from ₹18,530 crore in the previous year. Net profit for the year increased 27% to ₹2,861 crore, compared with ₹2,261 crore in FY25.
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The company has recommended a dividend of ₹7.50 per equity share of face value ₹2 each, equivalent to 375%, for the financial year ended March 31, 2026. The dividend, if approved by shareholders at the Annual General Meeting scheduled on July 21, 2026, will be paid after the meeting date through permitted modes to eligible shareholders or their mandates.
Shares of Mahindra & Mahindra Financial Services Ltd ended at ₹295.00, down by ₹1.90, or 0.64%, on the BSE.
