M&M Financial Q3 Results: Profit beats estimates, asset quality improves

Mahindra & Mahindra Financial Services Ltd reported a mixed but resilient set of numbers for the December quarter, with net profit coming in above Street expectations even as it declined year-on-year.

Net profit stood at ₹810.4 crore, ahead of the CNBC-TV18 poll estimate of ₹728 crore, though lower than ₹899.5 crore reported in the same quarter last year.

Net interest income rose a strong 20.6% year-on-year to ₹2,304 crore, supported by steady loan growth, but fell short of the estimated ₹2,425 crore.

As per the NBFC's Q3 business update, earlier in January, disbursements during the quarter were around ₹17,600 crore, marking a 7% year-on-year increase. Business assets grew about 12% to nearly ₹1.29 lakh crore as of December 31, 2025.

For the nine months ended December, disbursements came in at around ₹43,900 crore, up 4% year-on-year, excluding finance leases.

Asset quality showed signs of improvement. Collection efficiency remained stable at 95%, while Stage-3 assets were at 3.9–4.0%, largely unchanged sequentially. Early delinquencies eased, with Stage-2 assets declining to an estimated 5.4–5.5% from 5.8% in the September quarter and 6.3% a year earlier.

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The NBFC also reported a strong liquidity position, with a buffer of over ₹8,850 crore on its balance sheet as of December-end.

Ahead of the earnings announcement, shares of Mahindra & Mahindra Financial Services closed at ₹370.05 on the BSE, up 1.69%.