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Mahindra Finance Share Price Target 2026: Q4 earnings season is at the peak. With investors keeping an eye on the ongoing earnings cycle, a host of industries, including pharma, FMCG, infrastructure and media announced major regulatory updates, strategic developments and corporate actions, setting the momentum high for market sentiment. While some stocks are expected to maintain their positions because of fundamentals and structural tailwinds, others are going into a tailspin. One such homegrown stock, Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), a leading non-banking financial company (NBFC) has received bullish outlooks from a clutch of brokerages.
The coverages were initiated after the Mahindra Finance reported its Q4 results last week. At 9:19 AM today, shares of the company were trading at Rs 326.75, up 11.03 per cent from the previous close.
Emkay on Mahindra Finance
- Upgraded to ADD from REDUCE, with TP of Rs 340 (Upside ~15.6%).
– Exemplary Q4 FY26 performance –> numbers much ahead of expectations.
– Company well positioned to withstand any challenges due to external environment.
– Margins expansions driven by better asset mix, rising fee income, and moderation in CoFs.
– NIM + Fee is showing improvement and credit cost is contained.
– Growth expected to improve led by tractors, used vehicles, PVs, and gradual scaling up of MSME and mortgages.
Nuvama on Mahindra Finance
– Maintain HOLD with a TP of Rs 330.
– Q4 PAT beat estimates driven by higher other income and lower operating costs.
– AUM growth improved led by SME, used vehicles and passenger vehicle segments.
– Asset quality improved sharply with GS3 at 3.4% and NS3 at 1.4%.
– Macro-prudential overlays of ₹2.17bn created due to future risk uncertainties.
– NIM and spreads improved YoY supported by better pricing and portfolio mix.
– Disbursements grew YoY led by tractors, SME and pre-owned vehicle financing.
– Credit cost declined; reported at 1.5% including overlays, lower excluding them.
– Management guides 16–18% AUM growth with 15% RoE over medium term.
HDFC Securities on Mahindra Finance
– Target price Rs350 (revised).
– Healthy profitability with improving NIM and strong fee income.
– Credit costs elevated due to management overlay.
– AUM growth moderate but disbursements improving.
– Focus on portfolio diversification and digital efficiency.
– RoA expected at ~2.1–2.2% with 15–16% growth CAGR.
– Value the stock at ~1.7x Mar-28 ABVPS.
Mahindra Finance Q4 PAT Jumps 55%
Mahindra & Mahindra Financial Services Ltd reported a 55 per cent year-on-year increase in standalone profit after tax (PAT) at Rs 873 crore for the quarter ended March 31, 2026, aided by higher disbursements and improved margins.
The company’s assets under management (AUM) grew 12 per cent year-on-year to Rs 1,34,096 crore, while disbursements rose 11 per cent to Rs 17,184 crore during the quarter, according to its earnings statement.
Net interest margin expanded to 7.5 per cent from 6.5 per cent a year earlier, while credit cost stood at 1.5 per cent, broadly stable compared with the previous year.
For the full financial year 2025 – 26, standalone PAT increased 19 per cent to Rs 2,782 crore. The company attributed the growth to higher fee income, lower cost of funds and steady performance in its core vehicle financing business.
On a consolidated basis, total income for the quarter rose 14 per cent to Rs 5,560 crore, while FY26 PAT increased 27 per cent to Rs 2,861 crore.
Managing Director and CEO Raul Rebello said the company’s performance was driven by “disciplined execution” and investments across core and emerging businesses aimed at sustaining growth and profitability.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
