Mahindra & Mahindra Financial Services (M&MFIN) Q3 25/26 earnings summary

Executive summary

• Completed business transformation project with 95% channel adoption and 100% collections, resulting in a visible step-up in profitability and asset quality stabilization; unaudited Q3 and nine-month FY26 results approved with a clean review report.

• Achieved 76% YoY PAT growth for nine months FY26 (adjusted for provision releases and labor code impact), with GS3 ratio below 4% for eight consecutive quarters.

• Pivoting to growth phase, supported by investments in products, channels, systems, and strong capital adequacy (Tier 1 at 17.4%).

• Leadership in tractor financing further strengthened, with 65% YoY disbursement growth; MSME AUM grew 35% YoY.

• Group includes subsidiaries in insurance broking, rural housing finance, and joint ventures in asset management and trusteeship.

Financial highlights

• Q3FY26 standalone PAT at ₹907 crore, up 1% YoY (excluding labor code impact), and 59% QoQ; nine months PAT up 76% YoY (adjusted).

• Q3FY26 NIM at 7.5% (includes one-time benefits); nine months NIM at 7.1% vs 6.6% last year.

• Total income for Q3FY26 at ₹4,763 crore, up 15% YoY; AUM at ₹1,28,965 crore, up 12% YoY.

• Fee and other income expanded to 1.4% for nine months vs 1.1% last year.

• GS3 at 3.8% (down 14 bps sequentially, 13 bps YoY); GS2+GS3 at 9.2%, 101 bps lower YoY.

• Credit cost for Q3 at 1.3%; nine months at 1.8%.

• Standalone revenue from operations for Q3 FY26 was ₹4,753.69 crore; consolidated revenue at ₹5,449.84 crore.

• Standalone and consolidated net profit after tax for Q3 FY26 were ₹810.44 crore and ₹825.60 crore, respectively.

Outlook and guidance

• Confident in maintaining credit cost within 1.5%-1.7% range, with GS2 and GS3 stocks range-bound.

• Targeting mid- to high-teens CAGR loan book growth over the medium term, with Wheels share reducing to 70% by FY30 as SME and mortgage segments expand.

• ROA target remains at 2%, with long-term ambition to reach 15% ROE.

• Company continues to monitor regulatory changes, including new Labour Codes, and will assess accounting implications as further guidance emerges.