Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) on Friday reported a 55 per cent year-on-year jump in profit after tax (PAT) for the March quarter, driven by margin expansion and steady asset quality, even as credit costs inched up.
Standalone PAT for Q4 FY26 rose to ₹873 crore from ₹563 crore a year earlier. Disbursements grew 11 per cent to ₹17,184 crore, while assets under management (AUM) increased 12 per cent to ₹1.34 lakh crore. Net interest margins expanded by about 101 basis points to 7.5 per cent, reflecting improved yields and lower cost of funds
Credit cost stood at 1.5 per cent for the quarter
For the full year FY26, PAT rose 19 per cent to ₹2,782 crore, supported by higher margins and operating leverage, even as credit costs rose to 1.7 per cent following management overlays. Asset quality remained within guidance, with gross stage 3 assets at 3.4 per cent and stage 2 and 3 assets at 8.2 per centThe board has proposed a final dividend of ₹7.50 per share, up from ₹6.50 last year.
“This year’s progress across growth, margins and risk was driven by disciplined execution and resulted in a tangible step-up in profitability,” said Raul Rebello, MD & CEO, Mahindra Finance. He added that continued investments in the core vehicle financing franchise, new growth categories and technology will support sustainable growth.
Business momentum remained strong across segments
The company is also accelerating diversification beyond its core vehicle finance business, with the non-vehicle portfolio growing 32 per cent year-on-year, led by SME lending and loan-against-property products. At the same time, Mahindra Finance remains adequately capitalised, with a capital adequacy ratio of 18.8 per cent and a liquidity buffer of over ₹9,100 crore, providing headroom for growth.
On a consolidated basis, Q4 PAT rose to ₹940 crore, while full-year PAT increased 27 per cent to ₹2,861 crore. The company said its focus on disciplined execution, portfolio diversification and digital adoption will help sustain growth, even as it navigates evolving macroeconomic conditions
Published on April 24, 2026