Mahindra & Mahindra Financial Services (M&MFIN) Q4 25/26 earnings summary

Executive summary

• Achieved 19% YoY growth in PAT for FY26 and 55% YoY in Q4FY26; adjusted PAT up 30% for FY26 and 84% for Q4FY26 after labor code and overlays.

• Audited standalone and consolidated financial results for Q4 and FY ended March 31, 2026, were approved, showing strong growth in revenue and profitability year-over-year.

• Digital and AI transformation fully integrated, with 100% onboarding and collections digitized, driving productivity and efficiency.

• Asset quality stabilized; GS3 at 3.4%, GS2+GS3 at 8.2%, both at multi-year lows.

• A dividend of Rs. 7.50 per equity share (375%) was recommended for FY 2026, subject to AGM approval.

Financial highlights

• Standalone revenue from operations for FY 2026 was Rs. 18,445.59 crore, up from Rs. 16,018.95 crore in FY 2025.

• PAT for FY26 at ₹2,782 crore, up 19% YoY; Q4FY26 PAT at ₹873 crore, up 55% YoY.

• NIM expanded to 7.1% for FY26 (vs 6.5% FY25); Q4FY26 NIM at 7.5%.

• Fee and other income increased to 1.4% of assets.

• Capital adequacy at 18.8% (Tier I: 16.7%).

Outlook and guidance

• Management targets medium-term AUM growth CAGR of 16%-18%.

• SME and mortgage businesses expected to grow 30%-40% due to low base.

• Credit cost guidance remains at 1.3%-1.7%.

• ROE aspiration set at 15% in the near term, with leverage and ROA expansion as key levers.

• Ongoing monitoring of regulatory changes, including new Labour Codes and potential merger with Mahindra Rural Housing Finance Limited.