M&M Financial Q2 Update: AUM up 13%, disbursements soft; Stage 2 assets improve

Mahindra & Mahindra Financial Services Ltd. reported its business update for the July-September period on Friday, October 3, which saw growth in its assets but no major change in asset quality.

At the end of the September quarter, the company anticipates disbursements of ₹13,500 crore, a growth of 3% compared to the same period last year. For the first half of the financial year, the disbursements grew by 2% from last year to ₹26,300 crore.

Business assets for the company increased by 13% from the September 2024 period to ₹1.26 lakh crore.

Collection efficiency remained constant at 96%, which was the same figure reported in the same quarter last year as well.

At the end of the September quarter, the company's gross stage 3 assets are expected to be in the range of 3.9% to 4%, compared to 3.8% at the end of the June quarter. At the same time, the stage 2 assets are estimated to be in the range of 5.75% to 5.85%, compared to 5.9% in June, and 6.4% during the same quarter last year.

M&M Financial currently has a liquidity chest of over ₹8,500 crore, it said in its business update.

Shares of Mahindra & Mahindra Financial Services are recovering from the lows of the day after the business update announcement, currently trading 0.6% higher at ₹275. The stock has risen 6% in the last one month.