Non-banking financial company Mahindra and Mahindra Financial Services reported a more than twofold rise in consolidated net profit to ₹940 crore in Q4 FY26, compared to ₹456 crore in the same quarter last year.
On a standalone basis, the company’s profit after tax (PAT) grew 55% to ₹873 crore, reflecting strong operational performance.
According to Managing Director and CEO Raul Rebello, the growth was driven by improved operating metrics, including controlled funding costs, which expanded the net interest margin (NIM) by 1% to 7.5%, along with 12% asset growth, a doubling of fee income, and tighter control over operating and credit costs.
Amid global uncertainties, particularly the ongoing Middle East conflict, the company has set aside ₹217 crore as a precautionary provision to account for potential risks.
Rebello clarified that the provision is a prudential measure rather than a sign of stress, noting that collection efficiencies remain stable. He added that without this provision, the company’s profit would have grown by 84% year-on-year.
The company indicated that it will adopt a cautious growth strategy, rebalancing disbursements to manage risks, especially in segments like unsecured lending and micro-loans against property, which may face headwinds.
Looking ahead, Mahindra Finance aims to maintain mid-teen AUM growth, while ensuring that growth does not come at the expense of margins or asset quality.
The company has also strengthened its liquidity position to navigate potential economic uncertainties.
Shares of the company closed 0.88% lower at ₹294.30 on the BSE, compared to a 1.29% decline in the broader market.
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