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

Executive summary

• Completed business transformation project with 95% digital onboarding, 100% collections, and visible step-up in profitability and asset quality stabilization, with GS3 ratio below 4% for eight consecutive quarters.

• PAT up 76% year-over-year for nine months, with Q3 ROA at 2.5% and nine-month ROA at 1.9%.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, were approved by the Board on January 28, 2026, with a clean review report from joint statutory auditors.

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

• Pivoting to growth, supported by investments in products, channels, systems, and a strong capital base.

Financial highlights

• Q3FY26 standalone PAT at ₹907 crore, up 1% YoY (excluding labor code impact), and 59% QoQ; 9MFY26 PAT up 76% YoY (adjusted).

• Standalone revenue from operations for Q3 FY26 was ₹4,753.69 crore, up from ₹4,143.00 crore in Q3 FY25; nine-month revenue was ₹13,645.63 crore.

• NIM for nine months expanded to 7.1% from 6.6% last year; Q3 NIM at 7.5% (includes one-time items).

• Fee and other income rose to 1.4% of assets for nine months, up from 1.1% last year.

• Disbursements for Q3FY26 at ₹17,612 crore, up 7% YoY; 9MFY26 disbursements at ₹43,934 crore, up 4% YoY.

Outlook and guidance

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

• Targeting mid- to high-teens CAGR loan book growth over the medium term, with diversification into mortgages and SME.

• Aims to reduce Wheels business share from 88% to 70% by FY2030, increasing contribution from other asset categories.

• ROA target remains at 2%, with a long-term goal of 15% ROE.

• Focus on defending and growing leadership in vehicle finance, expanding SME, leasing, and fee income, and sustaining risk levels.