Mahindra Finance Shares Rise More Than 5% as Q2 Profit Jumps 45% to ₹566 Crore

Mumbai, October 29, 2025: Mahindra & Mahindra Financial Services Ltd share price (NSE: M&MFIN) jumped more than 5% in initial trade on Tuesday, hitting a new 52-week high. This rally came after a strong earnings report for the second quarter of FY26. This surge was on a positive note as investors welcomed strong growth in profitability and interest income.

Mahindra & Mahindra Financial Services Ltd is a subsidiary of the Mahindra Group and is among India’s top non-banking financial companies (NBFCs), providing vehicle financing, SME financing, and rural enterprise financing. The company has been listed since the year 2006 and is a prime mover in financial inclusion in India’s hinterlands, and is included in the Nifty India Corporate Group Index – Mahindra Group.

Strong Q2 Performance

The non-banking financial institution posted a 45.1% quarter-on-quarter increase in consolidated net profit at ₹566 crore for the quarter ended September 30, 2025, against ₹390 crore during Q2 FY25. Stronger disbursements, sustained collections, and a sound loan book in rural and semi-urban areas powered the sharp jump in earnings.

Net interest income (NII) increased 18% YoY to ₹2,829 crore from ₹2,403 crore during the corresponding quarter last year. This was aided by robust adoption of vehicle financing, small and mid-corporate business loans, and pre-owned asset segments.

Market Reaction and Stock Movement

After the earnings announcement, Mahindra Finance stock opened at ₹308.00, rising to ₹324.15 later, before trading at around ₹315.00, up 5.04% at 12:05 pm IST. The stock saw a traded volume of 70.30 lakh shares, with a VWAP of ₹313.80, reflecting heavy investor involvement.

The market capitalisation of the company was at ₹42,964 crore, while the free-float market cap was at ₹20,264 crore. The stock has risen more than 25% in the past half-year, outpacing the broader Nifty Financial Services Index in the backdrop of reviving rural credit sentiment.

Financial Snapshot

Mahindra Finance’s asset quality remains strong, supported by steady loan book growth and improved collection efficiency. However, the financial sector has seen a moderation in trading activity, with annualised volatility recorded at 34.20%.

REF: https://nsearchives.nseindia.com/corporate/M_MFIN_28102025163907_PressReleasesigned.pdf

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