Q1 FY26 Boost: Mahindra Finance Business Assets Up 15%, Shares Up 2.67%
By Shishta Dutta | Published at: Jul 3, 2025 11:30 AM IST
Mumbai, July 3, 2025 – The shares of Mahindra & Mahindra Financial Services Ltd (NSE: M&MFIN, BSE: 532720) witnessed a rise during the early trade on Thursday. The increased investor interest is attributed to the company’s financial highlights (Q1 FY26), which demonstrated stellar asset growth, stable collection efficiency and improved liquidity. The company’s total business assets demonstrated ~15% YoY (Year on Year) growth, and the liquidity chest was valued at ₹9600 crores.
At 10:15 AM, the stock was up 2.67% to ₹268.75 per share.
Key Q1 FY26 Highlights
According to the company’s latest filing, Mahindra Finance reported a YoY growth of ~15% in Business Assets, which stood at approximately ₹1,21,800 crore as of June 30, 2025. Disbursements for the quarter reached ₹12,800 crore, marking a modest 1% YoY increase (excluding finance lease).
| Particulars | Q1 FY26 | Q1 FY25 / Comparison |
|---|---|---|
| Disbursement | ₹12,800 crore (approx.) | ~1% YoY growth |
| Business Assets | ₹1,21,800 crore | ~15% YoY growth |
| Collection Efficiency (CE) | 95% | 94% in Q1 FY25 |
| Stage-3 Assets Estimate | 3.8%–3.9% | 3.7% (Mar ’25), 3.6% (Jun ’24) |
| Stage-2 Assets Estimate | 5.8%–5.9% | 5.4% (Mar ’25), 6.1% (Jun ’24) |
| Liquidity Chest | ₹9,600+ crore | Comfortable position |
Management highlighted continued balance sheet strength, stating the company “continued to enjoy a comfortable liquidity position” with over ₹9,600 crore in reserves.
Market Reaction and Valuation Metrics
On the NSE, the stock opened higher at ₹263.00 and reached an intraday high of ₹268.75 before settling at ₹267.40, up ₹5.65 from its previous close of ₹261.75. The traded volume was 13.19 lakh shares with a traded value of ₹35.11 crore. VWAP stood at ₹266.26.
Market Snapshot
| Metric | Value |
|---|---|
| Last Traded Price | ₹268.72 |
| % Change | +2.67% |
| 52-Week High / Low | ₹333.01 / ₹231.02 |
| Market Cap | ₹37,167.83 crore |
| Free Float Market Cap | ₹17,658.64 crore |
| P/E Ratio (Adjusted/Symbol) | 16.57 |
| Index Inclusion | NIFTY MIDCAP 100 |
| Trading Status | Active |
| Industry Classification | Non-Banking Financial Company (NBFC) |
Strategic Outlook
Despite marginal stress build-up in asset quality (Stage 3 and Stage 2), Mahindra Finance’s stable collections and comfortable liquidity position it well among NBFCs. The stock’s steady uptrend reflects confidence in its growth trajectory and asset quality management heading into FY26.
About the Company
Mahindra & Mahindra Financial Services Ltd, listed since March 2006, is a leading NBFC engaged in vehicle financing, SME lending, and rural financing. It is a part of the Mahindra Group and is included in the NIFTY MIDCAP 100 index.
REF: https://nsearchives.nseindia.com/corporate/M_MFIN_02072025212318_Q4businessupdatesigned.pdf
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