Mahindra & Mahindra Financial Services Ltd logo

Mahindra & Mahindra Financial Services Ltd

M%26MFIN NSE

Mahindra & Mahindra Financial Services Limited (MMFSL), a part of the Mahindra Group,is a NBFC primarily engaged in the business of financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment and SME Financing. [1]

AI Verdict: HOLD Confidence: 5%

M&M Financial Services trades at a reasonable PE of 14.4x with strong profit growth of 31% TTM, but persistently low ROE of 11% over 3 years and low interest coverage ratio limit upside. The 60.6% buy rating from analysts suggests moderate optimism, but asset quality risks in rural lending warrant caution.

Key Fundamentals

Volatility
Moderate
P/E Ratio
16
EBITDA
₹12,995 Cr
Return on Equity
9.73%
Debt to Equity
5.29
EPS
₹16.77
52W High
₹412.2
52W Low
₹246.35

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 37.4%

Weaknesses

3
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 11.1% over last 3 years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
13.36% ↗
Net Income Growth
25.78% ↗
Cash Flow Change
15.43% ↗
ROE
7.71% ↘
ROCE
-0.12% ↘
EBITDA Margin (Avg.)
-2.71% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

M&M Financial Services trades at a reasonable PE of 14.4x with strong profit growth of 31% TTM, but persistently low ROE of 11% over 3 years and low interest coverage ratio limit upside. The 60.6% buy rating from analysts suggests moderate optimism, but asset quality risks in rural lending warrant caution.

Bull Case 7
  • Strong TTM profit growth of 31% indicates improving earnings momentum and operational leverage
  • Attractive valuation at PE of 14.4x, below typical NBFC peers trading at 18-22x, offering margin of safety
  • Healthy dividend payout of 37.4% with current yield of 2.53%, providing income support to investors
  • Consistent revenue growth with 10-year compounded sales CAGR of 12% demonstrating stable business franchise
  • 60.6% of analysts recommend Buy (20 out of 33 ratings), reflecting consensus confidence in near-term performance
  • 5-year compounded profit CAGR of 35% shows strong long-term earnings recovery from COVID-era stress
  • Price-to-book of 1.55x is reasonable for a financial services company with Rs 40,796 crore market cap and rural franchise value
Bear Case 8
  • Low 3-year average ROE of 11% indicates suboptimal capital efficiency for a lending business
  • Low interest coverage ratio signals vulnerability to rising borrowing costs and margin compression
  • Potential capitalisation of interest costs raises concerns about true profitability and accounting quality
  • 3-year stock CAGR of -1% shows the market has not rewarded shareholders despite profit growth
  • 10-year stock CAGR of only 4% significantly underperforms broader market indices like Nifty50
  • Debt-to-equity data unavailable, limiting visibility into leverage risk for a rural-focused NBFC
  • Rural and semi-urban lending exposure creates higher asset quality risk during agricultural downturns and monsoon failures
  • Only 5-year sales CAGR of 11% versus 3-year CAGR of 18% suggests recent growth may not be sustainable at elevated levels

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 2
  • ₹7.50 dividend for FY26 Jun 18

    M&M Financial Services declared a final dividend of ₹7.50 per share for FY26. Record date is July 13, 2026, with AGM approval scheduled for July 21, 2026.

  • ₹1,000 crore NCD issue approved Jun 15

    Board approved secured NCD issuance up to ₹1,000 crore via private placement at 7.90% p.a. fixed coupon with 3-year tenure, strengthening the company's funding base.

Neutral 3
  • Director change, LIC nominee replaced Jun 22

    Ashwani Ghai ceased as LIC-nominated Director on June 22, 2026. Krishna Kumar Sukumaran Nair has been appointed as his successor.

  • ₹15.28 crore block trade on NSE Jun 17

    Approximately 5,13,945 shares traded in a single block deal at ₹297.30 per share, totaling ₹15.28 crores, indicating institutional activity.

  • Investor conference on June 24 Jun 15

    Company scheduled an investor conference for June 24, 2026 to discuss Q4 FY2026 updates and general business overview.

TL;DR: M&M Financial Services is in a steady phase with no visible headwinds in recent news flow. The ₹7.50 dividend signals confidence in FY26 earnings, while the ₹1,000 crore NCD raise at a competitive 7.90% rate supports growth funding. Institutional block trade activity and upcoming investor conference suggest sustained market interest. Near-term catalyst is the June 24 investor meet which could provide fresh guidance on asset quality and disbursement trends.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue
3,463
3,583
3,833
4,100
4,280
4,316
4,465
4,797
4,886
4,991
5,026
5,450
5,539
Expenses
1,072
1,504
1,724
1,456
1,520
1,676
1,830
1,325
2,001
1,964
2,015
1,913
1,987
Financing Profit
913
482
406
846
900
679
573
1,297
667
746
814
1,301
1,332
Fin. Margin %
26%
13%
11%
21%
21%
16%
13%
27%
14%
15%
16%
24%
24%
Other Income
86
67
44
50
68
58
28
19
27
43
39
-100
37
Interest
1,477
1,597
1,703
1,798
1,861
1,960
2,062
2,175
2,218
2,280
2,198
2,236
2,220
Depreciation
65
66
67
69
72
76
79
82
85
86
94
96
110
PBT
934
483
383
826
896
661
523
1,233
609
704
759
1,105
1,259
Tax %
28%
25%
25%
25%
25%
25%
25%
26%
25%
25%
25%
25%
25%
Net Profit
675
362
287
623
671
497
390
918
456
529
566
826
940
EPS in Rs
4.9
2.58
2.02
4.48
4.82
3.58
2.8
6.6
3.29
3.8
4.06
5.93
6.75
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
6,051
6,586
7,189
7,910
10,429
11,995
12,382
11,419
12,828
15,963
18,519
21,005
Expenses
1,972
2,459
3,123
2,547
3,129
4,903
6,046
5,347
4,696
6,204
6,832
7,878
Financing Profit
1,435
1,258
880
1,927
2,868
1,702
1,028
1,655
3,038
2,799
3,271
4,194
Fin. Margin %
24%
19%
12%
24%
28%
14%
8%
14%
24%
18%
18%
20%
Other Income
10
12
12
33
49
47
57
47
-8
64
77
18
Interest
2,643
2,868
3,186
3,436
4,432
5,391
5,308
4,417
5,094
6,959
8,415
8,934
Depreciation
46
46
54
55
76
147
151
152
226
275
321
386
PBT
1,400
1,224
838
1,905
2,841
1,602
934
1,549
2,804
2,588
3,027
3,826
Tax %
34%
36%
37%
36%
34%
32%
16%
26%
26%
25%
25%
25%
Net Profit
925
787
530
1,216
1,867
1,086
780
1,150
2,071
1,943
2,261
2,861
EPS in Rs
7.13
6.03
4
8.53
13.15
7.73
5.56
8.18
14.91
13.9
16.27
20.54
Div. Payout %
25%
29%
27%
21%
22%
0%
13%
39%
36%
40%
35%
37%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
113
113
113
123
123
123
246
247
247
247
247
278
Reserves
5,830
6,356
6,847
9,732
11,146
11,846
15,530
16,650
18,313
19,686
21,282
26,361
Borrowing
29,232
34,044
40,644
44,986
58,802
65,634
65,101
62,126
81,429
1,00,215
1,19,093
1,28,370
Other Liabilities
3,459
4,494
5,619
3,889
4,505
4,189
4,724
4,787
5,096
3,567
3,483
3,635
Total Liabilities
38,633
45,007
53,223
58,730
74,576
81,793
85,601
83,809
1,05,085
1,23,716
1,44,105
1,58,644
Fixed Assets
119
129
133
147
201
455
399
515
871
1,008
1,207
1,334
CWIP
0
0
1
0
1
1
12
2
3
106
66
2
Investments
654
1,199
1,374
2,378
3,327
5,340
12,126
8,654
10,063
9,598
10,590
7,407
Other Assets
37,860
43,679
51,714
56,205
71,046
75,996
73,064
74,637
94,148
1,13,004
1,32,242
1,49,902
Total Assets
38,633
45,007
53,223
58,730
74,576
81,793
85,601
83,809
1,05,085
1,23,716
1,44,105
1,58,644
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-3,970
-4,957
-6,467
-8,510
-12,078
-3,115
5,826
18
-17,395
-18,449
-15,602
-12,772
Investing
34
-440
-97
243
-1,213
-2,689
-8,348
3,112
-1,635
2,671
-1,077
770
Financing
3,907
5,431
6,766
8,174
13,490
6,050
2,548
-3,173
18,852
16,095
17,605
10,637
Net Cash Flow
-29
34
202
-93
199
245
26
-43
-179
317
927
-1,365
Free Cash Flow
-4,009
-5,010
-6,529
-8,579
-12,211
-3,231
5,785
-276
-17,794
-18,719
-15,975
-13,120
CFO/OP
-83
-104
-146
-146
-154
-36
102
10
-207
-181
-126
-91
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
16%
12%
8%
14%
17%
9%
5%
7%
12%
10%
11%
12%

Shareholding Pattern

As of Mar 2026
Promoters 52.49%
DIIs 32.09%
FIIs 9.40%
Public 5.98%
Others 0.03%
Total 99.99%
  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
52.16%
52.16%
52.16%
52.16%
52.16%
52.16%
52.16%
52.16%
52.49%
52.49%
52.49%
52.49%
FIIs
13.92%
14.10%
12.72%
11.95%
10.08%
10.19%
10.49%
10.68%
9.33%
9.59%
9.11%
9.40%
DIIs
26.95%
25.84%
26.96%
28.61%
30.66%
31.58%
31.17%
31.31%
32.33%
32.29%
32.34%
32.09%
Public
6.84%
7.79%
8.06%
7.18%
7.00%
6.01%
6.14%
5.81%
5.79%
5.58%
6.02%
5.98%
Others
0.15%
0.14%
0.10%
0.09%
0.09%
0.07%
0.06%
0.05%
0.05%
0.04%
0.04%
0.03%
No. of Shareholders
1,85,705
2,19,510
2,39,372
2,27,512
2,24,273
2,11,051
2,24,415
2,17,620
2,27,141
2,22,526
2,43,019
2,36,252

Documents

1
Concall - Apr 2017 Apr 2017
2
Concall - Apr 2017 Apr 2017
3
Concall - Jul 2017 Jul 2017
4
Concall - Oct 2017 Oct 2017
5
Concall - Jan 2018 Jan 2018

Frequently Asked Questions about Mahindra & Mahindra Financial Services Ltd

What does Mahindra & Mahindra Financial Services Ltd do?
Mahindra & Mahindra Financial Services Limited (MMFSL), a part of the Mahindra Group,is a NBFC primarily engaged in the business of financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment and SME Financing. [1]
Where is Mahindra & Mahindra Financial Services Ltd (M&MFIN) listed?
Mahindra & Mahindra Financial Services Ltd is listed on the Indian stock exchanges. It is listed on NSE: M%26MFIN and BSE: 532720. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Mahindra & Mahindra Financial Services Ltd belong to?
Mahindra & Mahindra Financial Services Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the PE ratio of Mahindra & Mahindra Financial Services Ltd?
The Price-to-Earnings (PE) ratio of Mahindra & Mahindra Financial Services Ltd is 16.00. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Mahindra & Mahindra Financial Services Ltd?
Over the past 52 weeks, Mahindra & Mahindra Financial Services Ltd has traded between a low of ₹246.35 and a high of ₹412.2. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Mahindra & Mahindra Financial Services Ltd?
Mahindra & Mahindra Financial Services Ltd has a Return on Equity (ROE) of 9.73%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Mahindra & Mahindra Financial Services Ltd on Tapetide?
On Tapetide, you can view Mahindra & Mahindra Financial Services Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Mahindra & Mahindra Financial Services Limited (MMFSL), a part of the Mahindra Group,is a NBFC primarily engaged in the business of financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipment and SME Financing. [1]

Website mahindrafinance.com
CEO Mr. Raul Rebello
Listed 2006-03-17
Face Value ₹ 2
Issued Size 1,38,99,71,160

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