Mahindra & Mahindra Financial Services (M&MFIN) Q2 26/27 earnings summary

Executive summary

• Standalone Q2FY27 PAT rose 55% YoY to ₹881.52 crore; disbursements increased 22% to ₹16,499 crore and AUM grew 15% to ₹1,46,512 crore.

• Standalone Q2 ROA was 2.2%; GS3 was 3.42%, GS2+GS3 was 8.1% and credit cost was 1.6%.

• Consolidated H1FY27 PAT increased 68% to ₹1,838.21 crore; standalone H1 PAT was ₹1,780.17 crore.

Financial highlights

• Standalone Q2 revenue from operations was ₹5,163.51 crore, up 15% YoY; NII grew 17% to ₹2,822 crore and pre-provisioning operating profit rose 20% to ₹1,791 crore.

• Consolidated Q2 revenue from operations increased 18% to ₹5,935.66 crore; NII rose 21% to ₹3,413 crore and PAT grew 61% to ₹910.73 crore.

• Standalone H1 revenue from operations was ₹10,135.63 crore and PAT was ₹1,780.17 crore; consolidated H1 revenue was ₹11,653.57 crore and PAT was ₹1,838.21 crore.

• Q2 standalone impairment expense was ₹629.51 crore versus ₹751.38 crore YoY; consolidated impairment expense was ₹628.50 crore versus ₹767.99 crore.

Outlook and guidance

• FY31 milestones include ROA of 2.2%-2.5%, credit cost of 1.3%-1.7%, GS2+GS3 below 10% and PPC of 3.2%-3.5%; medium- to long-term AUM growth target is 16%-18%.

• Priorities include defending wheels leadership, expanding mortgages, SME, leasing and fee income, and improving efficiency through data, digital and AI while sustaining asset quality.

• Management expects H2 disbursement growth, while noting a high prior-year base and a constrained environment require measured execution.

• Q2 loan-income compression reflected seasonal trade advances and elevated liquidity; management expects these non-earning balances to convert into earning assets.