FINANCIAL SERVICES · NSE/BSE: M&MFIN

Mahindra & Mahindra Financial Services Limited Earnings Summary — Q2 FY2027

Sentiment: Positive

AI-generated summary

Generated 2026-10-22

Generated using: Official Earnings Press Release

Business Intelligence Report

Mahindra Finance Q2 FY2027 PAT Surges 55% YoY to ₹882 Cr on 15% Revenue Growth and Controlled Impairments

Quarterly Business Intelligence

Q2 FY2027

Financials from Financial Intelligence · data as of 2026-09-30

Revenue

₹5,936 Cr

QoQ +3.8%YoY +18.1%

Net Profit

₹909 Cr

QoQ -1.8%YoY +61.1%

Operating Profit

₹3,807 Cr

QoQ +3.3%YoY +26.4%

Operating Margin

64.1%

QoQ -29 bpsYoY +422 bps

AI Quarterly Scorecard™

/ 100

Strong

Revenue Momentum85

Profit Growth81

Margin Expansion87

Growth Consistency100

Operating Efficiency83

Financial Stability55

Computed deterministically from the last 10 reported quarters.

Quarterly Business Momentum

Revenue & Growth

Revenue has increased for 10 consecutive quarters.
Revenue of ₹5,936 Cr is 18.1% higher year-on-year.
Revenue has compounded at 15.2% annualised over the last 10 quarters.
Revenue is at its highest level in 10 quarters.

Profitability

Net profit of ₹909 Cr is 61.1% above the same quarter last year.
Profit growth is outpacing revenue growth, pointing to positive operating leverage.
Net profit has compounded at 30.7% annualised across the period.

Margins

Operating margin stands at 64.1% in Q2 FY2027.
Operating margin expanded by 422 bps year-on-year.
Over the last two years operating margin has expanded by 511 bps.
PBT margin is 20.6%.

Operating Efficiency

Expense growth of 5.6% remained below revenue growth of 18.1%.
Operating profit of ₹3,807 Cr is 26.4% higher year-on-year.
Operating leverage continues to improve.

Overall Momentum

6 of the last 6 measured quarters delivered year-on-year revenue growth.
Overall quarterly business momentum scores 82/100 (Strong) on the latest 10 quarters.
Business momentum remains positive heading into the next quarter.

Quarterly Financials

Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %

Metric	Trend	Latest Q2 FY2027	Q1 FY2027	Q4 FY2026	Q3 FY2026	Q2 FY2026	Q1 FY2026	Q4 FY2025	Q3 FY2025	Q2 FY2025	Q1 FY2025
Revenue	Improving	5,936	5,718	5,539	5,450	5,026	4,991	4,886	4,797	4,465	4,316
Expenses	Improving	2,128	2,034	1,987	1,913	2,015	1,964	2,001	1,325	1,830	1,676
Operating Profit	Improving	3,807	3,684	3,552	3,537	3,012	3,026	2,885	3,472	2,636	2,639
Operating Margin	Stable	64.1%	64.4%	64.1%	64.9%	59.9%	60.6%	59.0%	72.4%	59.0%	61.1%
Other Income	Volatile	48	29	37	-100	39	43	27	19	28	58
Interest	Stable	2,523	2,372	2,220	2,236	2,198	2,280	2,218	2,175	2,062	1,960
Depreciation	Improving	109	99	110	96	94	86	85	82	79	76
Profit Before Tax	Volatile	1,223	1,242	1,259	1,105	759	704	609	1,233	523	661
Tax	Volatile	313	315	319	279	193	175	153	315	133	164
Net Profit	Volatile	909	926	938	824	564	528	457	918	389	498
Net Margin	Improving	15.3%	16.2%	16.9%	15.1%	11.2%	10.6%	9.4%	19.1%	8.7%	11.5%

Source: Financial Intelligence (Structured Quarterly Data)•Latest Quarter: Q2 FY2027•Figures in ₹ Crore • Margins in %•Automatically updated from Financial Intelligence · 2026-09-30

Key Takeaways

Standalone Net Profit for Q2 FY2027 jumped 54.8% YoY to ₹881.52 Cr, primarily driven by loan book expansion, higher fee income, and a decline in credit costs.
Total revenue from operations rose 15.5% YoY to ₹5,163.51 Cr, with interest income increasing 13.3% YoY to ₹4,732.46 Cr.
Asset quality showed solid YoY strengthening: Gross Stage-3 assets declined to 3.42% from 3.94% in Q2 FY2026 (3.45% in Q1 FY2027), while Net Stage-3 stood at 1.51% compared to 1.89% a year ago.
Impairment on financial instruments dropped 16.2% YoY to ₹629.51 Cr compared to ₹751.38 Cr in Q2 FY2026; Stage-3 provision coverage ratio improved to 56.64% from 53.00% YoY.
Total loan assets expanded to ₹1,42,361.56 Cr as of September 30, 2026, up 9.4% from ₹1,30,160.14 Cr at the end of March 2026.
Board approved the scheme of amalgamation to merge subsidiary Mahindra Rural Housing Finance Limited (MRHFL) into MMFSL, with an appointed date of April 1, 2027, subject to regulatory clearances.
Capital Adequacy Ratio remained well-capitalized at 17.98%, with a healthy Liquidity Coverage Ratio of 287%.

Management Guidance

Management is advancing its strategic integration by absorbing Mahindra Rural Housing Finance to consolidate lending capabilities across rural ecosystems, while sustaining strict underwriting and ECL provisioning standards to keep net slippages subdued.

Sentiment Shift

Improving

A sharp 55% YoY increase in profit, coupled with sustained asset quality improvements (Gross Stage-3 down 52 bps YoY) and reduced impairment charges, highlights improving credit cycle execution.

Resilient

Prudent

Expansionary

Outlook

Mahindra Finance remains well-positioned for balanced balance sheet expansion supported by solid rural footprint, sound capital adequacy (17.98%), and operational synergies expected from the MRHFL absorption.

From the Annual Report (Key Quotes)

“The Company holds provision towards expected credit loss as at September 30, 2026 aggregating to Rs.4,150.27 crore, including above referred management overlay provision.”

“The Board of Directors... approved the Scheme of Merger by Absorption amongst Mahindra Rural Housing Finance Limited and Mahindra & Mahindra Financial Services Limited... The Appointed date for the Scheme is April 01, 2027.”

Official Quarterly Documents

Earnings Press Release

Official quarterly earnings release published by the company.

Download

Earnings Call Transcript

Management discussion and analyst Q&A.

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This summary is AI-generated from Mahindra & Mahindra Financial Services Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.