Mahindra Finance Q1FY26 Results: Net Profit at ₹529.5 Cr, Rights Issue Lifts Net Worth to ₹23,346 Cr

Mumbai, July 22 — Mahindra & Mahindra Financial Services Ltd (NSE: M&MFIN | BSE: 532720) reported a standalone net profit of ₹529.5 crore for the quarter ended June 30, 2025 (Q1FY26), up from ₹512.96 crore in Q1FY25. The lender posted a steady 11.9% YoY growth in total income, supported by higher interest income and fee-based revenues.

The ₹2,996.16 crore rights issue in June 2025 significantly strengthened Mahindra Finance’s balance sheet, expanding equity capital and lifting the capital adequacy ratio to 20.62%. This enhanced capital base positions the company to scale lending operations, absorb credit risk, and support strategic expansion across rural and semi-urban markets.

Stock Performance 

As of 22-Jul-2025, the stock closed at ₹266.40, up 1.35% from the previous close of ₹262.85. It moved between an intraday high of ₹267.45 and low of ₹259.40. Volume traded stood at 62.46 lakh shares with turnover of ₹165.49 crore.

Key Financial Highlights

Standalone

Mahindra & Mahindra reported a standalone net profit of ₹529.50 crore in Q1FY26, up 3.2% year-on-year. Revenue from operations rose 18.7% to ₹4,419.37 crore, while total income reached ₹4,437.75 crore, reflecting improved business activity and higher volumes compared to Q1FY25.

Earnings per share stood at ₹4.07, adjusted for the recent rights issue. Net worth increased 24.9% YoY to ₹23,346.05 crore, indicating strengthened shareholder equity. The capital adequacy ratio improved to 20.62%, up from 18.50% last year, pointing to higher capital buffer for business expansion and lending.

Consolidated

Mahindra & Mahindra reported consolidated revenue from operations at ₹4,990.61 crore in Q1FY26, improving from ₹4,885.63 crore in the previous quarter and ₹4,315.52 crore a year ago. This steady topline growth reflects sustained business traction across its automotive and farm equipment segments.

Net profit stood at ₹528.96 crore, higher than ₹456.19 crore in Q4FY25 and ₹497.01 crore in Q1FY25, indicating improved margin performance and operating discipline. Total comprehensive income rose to ₹540.25 crore, underscoring gains beyond core operations.

Rights Issue Impact

The company successfully completed a rights issue of ₹2,996.16 crore in June 2025, issuing 15.44 crore equity shares at ₹194 each. This resulted in an increase in:

• Equity share capital by ₹30.89 crore
• Securities premium by ₹2,965.27 crore

Post-allotment, Mahindra & Mahindra Ltd’s stake rose from 52.16% to 52.49%.

Asset Quality & Regulatory Ratios (Standalone)

Segment Performance (Consolidated)

Management Commentary

Raul Rebello, Managing Director & CEO, said the quarter reflected robust growth in the company’s core lending operations and an improvement in asset quality. He noted that the rights issue had significantly strengthened Mahindra Finance’s capital base, enabling deeper outreach across rural and semi-urban markets.

Company Overview

Mahindra & Mahindra Financial Services Ltd, a listed NBFC and part of the Mahindra Group, primarily provides vehicle and rural financing. The company is listed on NSE and BSE and has subsidiaries engaged in housing finance, insurance broking, and asset management.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/00bc6547-e310-4078-8cb4-c8338d880569.pdf

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