Mahindra Finance Disburses ₹12,800 Crore in Q1FY26, Business Assets Jump 15% YoY
By Shishta Dutta | Updated at: Oct 15, 2025 06:25 PM IST
Mumbai, July 3, 2025 — Mahindra & Mahindra Financial Services Ltd (NSE: M&MFIN | BSE: 532720) reported a modest performance for Q1FY26, with disbursements estimated at ₹12,800 crore, marking a marginal year-on-year (YoY) growth of approximately 1% (excluding finance lease).
Q1FY26 Key Business Metrics
| Metric | Q1FY26 Estimate | Q1FY25 / Earlier | YoY / Comparative Growth |
|---|---|---|---|
| Disbursement | ₹12,800 crore | ~₹12,670 crore* | ~1% YoY |
| Business Assets | ₹1,21,800 crore | ~₹1,05,913 crore | ~15% YoY |
| Collection Efficiency (CE) | 95% | 94% | +100 bps |
| Stage-3 Asset Quality | 3.8% – 3.9% | 3.6% (June ’24) | Up 20–30 bps YoY |
| Stage-2 Asset Quality | 5.8% – 5.9% | 6.1% (June ’24) | Down 20–30 bps YoY |
| Liquidity Chest | ₹9,600+ crore | Not disclosed | Comfortable position |
*Back-calculated for comparison based on 1% growth guidance.
Asset Quality & Liquidity Position
The company reported a stable Q1FY26 with disbursements at ₹12,800 crore, up 1% YoY. Business assets rose 15% to ₹1,21,800 crore, while collection efficiency improved by 100 bps to 95%. Stage-3 assets rose marginally to a range of 3.8–3.9% as of June 30, 2025, compared to 3.6% in the same period last year. Meanwhile, Stage-2 assets showed improvement, estimated at between 5.8% and 5.9%, which is better than the 6.1% recorded in June 2024.
Despite a slight rise in delinquencies this quarter, the company has shown clear year-on-year progress in improving asset quality. It also continues to hold a strong liquidity chest of over ₹9,600 crore, underscoring its solid financial footing and ability to comfortably support its lending operations.
Strategic Outlook
The company has maintained operational stability despite muted disbursement growth, bolstered by its enhanced collection efficiency and balance sheet resilience. The steady expansion in business assets and improved Stage-2 metrics reflect a prudent credit underwriting approach amid dynamic rural demand conditions.
M&MFIN Stock Performance
As of 10:00 am on July 3, 2025, M&MFIN shares have gained 2.46% trading at ₹268.20. Note that M&MFIN shares have dipped 10% in the last year, gained 2.31% in the year-to-date, and are up 0.13% in the previous month.
About Mahindra & Mahindra Financial Services
Mahindra & Mahindra Financial Services Ltd (M&MFIN) is a leading non-banking financial company (NBFC) listed on NSE and BSE. It primarily caters to rural and semi-urban markets, offering vehicle finance, SME loans, and other financial products. The company is part of the Mahindra Group and continues to play a pivotal role in driving rural credit penetration across India.
REF: https://nsearchives.nseindia.com/corporate/M_MFIN_02072025212318_Q4businessupdatesigned.pdf
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