M&M Finance Q2 profit jumps 45% to ₹564 crore on strong NII, asset growth

Non-bank lender Mahindra & Mahindra Financial Services Ltd (M&M Fin) on Tuesday (October 28) reported a net profit of ₹564 crore for the second quarter, up 45% from ₹389 crore in the same period last year. Net Interest Income (NII) grew 14.6% year-on-year to ₹2,279 crore from ₹1,988 crore in Q2 FY25.

The company’s loan book expanded by 13% YoY, while total disbursements grew 3% to ₹13,514 crore. Tractor disbursements, however, surged 41% YoY, reflecting strong performance in this segment.

M&M Fin’s asset quality remained within the guided range, with Stage 3 (GS3) loans at 3.9% and Stage 2 plus Stage 3 (GS2+GS3) at 9.7%. The credit cost for the quarter ended September 30, 2025, was 2.2%.

Also Read: Mahindra Group eyes 5x expansion across core businesses, CEO tells shareholders

Capital adequacy remained healthy at 19.5%, with Tier-1 capital at 16.9%. Provision coverage on Stage 3 loans was prudent at 53%, and the total liquidity buffer stood at approximately ₹8,572 crore, ensuring flexibility for growth and risk mitigation. Collection efficiency remained strong at 96%, unchanged from Q2 FY25.

In the wheels business, M&M Fin continues to maintain its leadership in tractor financing and remains among the top NBFCs for financing passenger vehicles (PVs), light commercial vehicles (LCVs), small commercial vehicles (SCVs), tractors, and used PVs.

The company is steadily expanding its presence across SME lending, leasing through Quiklyz, and fee-based income from insurance and investment products, supported by robust investments in technology, analytics, and channel development. The non-vehicle finance portfolio grew 33% YoY, further diversifying the company’s asset base.

Also Read: Mahindra & Mahindra invests ₹1,652 crore in Mahindra Finance rights issue, raises stake to 52.49%

In the SME segment, M&M Fin focused on micro and small enterprises, with the asset book expanding 34% YoY to ₹6,911 crore as of September 30, 2025. The growth was primarily driven by secured offerings through Loan Against Property (LAP), with asset quality remaining strong—Stage 3 assets stood at 1.4% at quarter-end.

Shares of Mahindra & Mahindra Financial Services Ltd ended at ₹299.70, up by ₹0.75, or 0.25%, on the BSE.