Mahindra & Mahindra Financial Services Ltd
Mahindra & Mahindra Financial Services Ltd
Financial ServicesKey Fundamentals
MidcapNBFCFinancial ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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45 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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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
AI Analysis — Bull vs Bear
Mahindra & Mahindra Financial Services Ltd is a rural and semi-urban focused NBFC with a closing AUM of ₹1,19,673 crores as of March 2025 (up 17% YoY), trading at a P/E of 16.9x and P/B of 2.06x with a market cap of ₹56,224 crores. The company delivered 33% PAT growth in FY25 with improving asset quality (GS3 at 3.7%), though NIMs compressed to 6.5% due to elevated funding costs and return on equity remains moderate at ~12%.
- AUM grew 17% YoY to ₹1,19,673 crores in FY25, demonstrating strong loan book expansion in rural/semi-urban markets
- FY25 PAT grew 33% YoY, with TTM profit growth at 46%, indicating strong earnings momentum
- Asset quality improved significantly — Gross Stage 3 held at 3.7% in FY25 vs GS2+GS3 of 21.9% in FY22, reflecting sharply better underwriting
- Credit cost contained at 1.3% for FY25 (down from 2.1% in Q1FY24), reflecting prudent risk management and better collections
- Healthy dividend payout of 37.4% with dividend yield of 1.89%, providing income support; proposed dividend raised to ₹6.50/share vs ₹6.30 prior year
- Compounded sales CAGR of 18% over 3 years and 12% over 10 years shows consistent top-line growth trajectory
- Capital adequacy healthy at 18.5% with Tier-1 at 16.4%, providing comfortable buffer for growth without immediate capital-raise risk
- Stock CAGR of 53% over 1 year reflects re-rating driven by improved fundamentals, with management guiding mid-to-high teens AUM growth medium term
- Return on equity remains modest at 11-12% over 3-5 years, below peers in the NBFC space, limiting valuation re-rating potential
- NIMs compressed to 6.5% in FY25 due to higher cost of funds, squeezing spreads despite loan book growth
- Low interest coverage ratio indicates vulnerability to rising borrowing costs and potential margin pressure
- Company may be capitalizing interest costs, which could overstate reported profitability and asset values
- Disbursement growth was only 3% in FY25, suggesting underlying demand weakness in the core wheels business
- P/B of 2.06x for a company generating only ~12% ROE implies the stock is priced for significant improvement that may not materialize
- Rural/semi-urban concentration exposes the portfolio to monsoon variability and agricultural income cycles, with GS2+GS3 still at 9.1%
- 10-year stock CAGR of only 7% suggests prolonged periods of underperformance are possible despite short-term momentum
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1 net profit surges 70%+ Jul 21
Consolidated net profit rose 75.4% YoY to ₹927.48 crore in Q1 FY27 from ₹528.96 crore. Total income reached ₹5,724.81 crore.
- ₹7.50 dividend declared for FY26 Jul 21
The 36th AGM approved a dividend of ₹7.50 per share for FY26 and re-appointed key directors.
- Investor meet on Aug 18 Aug 12
M&M Financial Services will attend the Motilal Oswal 22nd Annual Global Investor Conference in Mumbai on August 18, 2026 to discuss Q1 FY27 earnings.
TL;DR: M&M Financial Services delivered a strong Q1 FY27 with net profit jumping 75% YoY, signalling robust asset quality and business momentum. Shareholder returns are healthy with a ₹7.50 dividend. No visible headwinds in recent news flow. The trend is clearly improving, with investor engagement events likely to reinforce confidence in the growth trajectory.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,583 | 3,833 | 4,100 | 4,280 | 4,316 | 4,465 | 4,797 | 4,886 | 4,991 | 5,026 | 5,450 | 5,539 | 5,718 |
| Expenses | 1,504 | 1,724 | 1,456 | 1,520 | 1,676 | 1,830 | 1,325 | 2,001 | 1,964 | 2,015 | 1,913 | 1,987 | 2,034 |
| Financing Profit | 482 | 406 | 846 | 900 | 679 | 573 | 1,297 | 667 | 746 | 814 | 1,301 | 1,332 | 1,312 |
| Fin. Margin % | 13% | 11% | 21% | 21% | 16% | 13% | 27% | 14% | 15% | 16% | 24% | 24% | 23% |
| Other Income | 67 | 44 | 50 | 68 | 58 | 28 | 19 | 27 | 43 | 39 | -100 | 37 | 29 |
| Interest | 1,597 | 1,703 | 1,798 | 1,861 | 1,960 | 2,062 | 2,175 | 2,218 | 2,280 | 2,198 | 2,236 | 2,220 | 2,372 |
| Depreciation | 66 | 67 | 69 | 72 | 76 | 79 | 82 | 85 | 86 | 94 | 96 | 110 | 99 |
| PBT | 483 | 383 | 826 | 896 | 661 | 523 | 1,233 | 609 | 704 | 759 | 1,105 | 1,259 | 1,242 |
| Tax % | 25% | 25% | 25% | 25% | 25% | 25% | 26% | 25% | 25% | 25% | 25% | 25% | 25% |
| Net Profit | 362 | 287 | 623 | 671 | 497 | 390 | 918 | 456 | 529 | 566 | 826 | 940 | 927 |
| EPS in Rs | 2.58 | 2.02 | 4.48 | 4.82 | 3.58 | 2.8 | 6.6 | 3.29 | 3.8 | 4.06 | 5.93 | 6.75 | 6.66 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,051 | 6,586 | 7,189 | 7,910 | 10,429 | 11,995 | 12,382 | 11,419 | 12,828 | 15,963 | 18,519 | 21,041 | 21,733 |
| 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 | 7,947 |
| Financing Profit | 1,435 | 1,258 | 880 | 1,927 | 2,868 | 1,702 | 1,028 | 1,654 | 3,038 | 2,799 | 3,271 | 4,229 | 4,760 |
| Fin. Margin % | 24% | 19% | 12% | 24% | 28% | 14% | 8% | 14% | 24% | 18% | 18% | 20% | 22% |
| Other Income | 10 | 12 | 12 | 33 | 49 | 47 | 57 | 47 | -8 | 64 | 77 | -17 | 4 |
| 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 | 9,026 |
| Depreciation | 46 | 46 | 54 | 55 | 76 | 147 | 151 | 152 | 226 | 275 | 321 | 386 | 399 |
| PBT | 1,400 | 1,224 | 838 | 1,905 | 2,841 | 1,602 | 934 | 1,549 | 2,804 | 2,588 | 3,027 | 3,826 | 4,365 |
| 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 | 3,260 |
| 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 | 23.4 |
| Div. Payout % | 25% | 29% | 27% | 21% | 22% | 0% | 13% | 39% | 36% | 40% | 35% | 37% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | 98,319 | 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 | 5,463 | 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 | 1,328 |
| CWIP | 0 | 0 | 1 | 0 | 1 | 1 | 12 | 2 | 3 | 105 | 66 | 7 |
| 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 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 16% | 12% | 8% | 14% | 17% | 9% | 5% | 7% | 12% | 10% | 11% | 12% |
Documents
Frequently Asked Questions about Mahindra & Mahindra Financial Services Ltd
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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]