Mahindra & Mahindra Financial Services Limited Earnings Summary — Q3 FY2026

• Standalone Net Profit for Q3 FY2026 reached ₹810.44 crore, a 21% sequential increase but a 9.9% year-on-year decline.
• The Company completed a significant Rights Issue during the fiscal year, issuing over 15.4 crore shares and raising ₹2,996.16 crore, boosting the Parent's stake to 52.49%.
• Asset quality remains stable with Gross Stage 3 assets at 3.80% and Net Stage 3 at 1.82%, supported by a Provision Coverage Ratio of 53.02%.
• A one-time exceptional charge of ₹117.33 crore (₹87.80 crore net of tax) was recognized due to the impact of new Labour Codes on Gratuity and Leave Encashment.
• The Company undertook a comprehensive annual refresh of its Expected Credit Loss (ECL) model, calibrating default and loss parameters based on historical data and macro-economic growth estimates.
• Standalone Capital Adequacy Ratio improved to 19.82% as of December 31, 2025, up from 18.33% in March 2025 following the capital infusion.

Management is prioritizing digital transformation and premiumization to improve asset quality. The company continues to monitor regulatory developments regarding the new unified Labour Codes framework and its implications for employee benefits.

Improving

Sequential profitability has surged 21% despite high impairment costs. Capital adequacy is significantly bolstered by the recent ₹2,996 Cr rights issue, providing a strong runway for rural lending growth.

The outlook remains steady with a focus on rural lending compound growth, supported by a strong AAA credit rating and robust liquidity (LCR of 293%). The annual refreshing of the ECL model suggests a conservative approach to risk management.