Mahindra & Mahindra Financial Services (M&MFIN) investor relations material

Executive summary

• Core wheels business achieved 20% YoY growth, with strong performance in PV, tractor, and three-wheeler segments; new growth engines saw 46% YoY growth.

• Non-wheels business (SME, mortgage, PL) grew 79% YoY, driving diversification and resilience.

• Standalone PAT grew 70% YoY to ₹899 crore; consolidated PAT up 75% YoY to ₹927 crore.

• Asset quality improved, with GS3 at 3.45%-3.5% and GS2+GS3 at 8.3%, both at multi-year lows.

• Subsidiaries, especially housing finance and insurance broking, contributed meaningfully to profits; Board is evaluating a merger of the housing finance subsidiary.

Financial highlights

• AUM grew 13% YoY to ₹1,37,449 crore, with secular growth across asset categories.

• NIM improved to 7.3%, targeting above 7.1% medium-term, aided by product mix, pricing, and lower cost of funds.

• Credit cost for Q1 at 1.5%, with guidance maintained at 1.3%-1.7%.

• ROA reached 2.4% for the quarter; ROE/RONW at 14.3%-15%.

• Standalone revenue from operations grew 13% YoY to ₹4,972 crore; consolidated revenue up 15% YoY to ₹5,718 crore.

Outlook and guidance

• AUM CAGR guidance of 16%-18% through FY 2031, with core wheels at 12% and non-wheels at 30%+.

• Credit cost expected to remain within 1.3%-1.7% range across cycles.

• Continued focus on digital and AI to drive productivity, cost efficiency, and collections.

• Liquidity buffer of INR 5,000-5,500 crore to be dynamically managed; robust liquidity buffer of ₹14,650 crore reported.

• Board has given in-principle approval for evaluating a merger of Mahindra Rural Housing Finance Limited.