M&M Financial Q1 FY26 Earnings Results: NII Grows 20% YoY, But Provisions and Bad Loans Rise

Mahindra & Mahindra Financial Services reported a 19.7% year-on-year increase in Net Interest Income (NII), reaching ₹2,267 crore in the June 2025 quarter. On a quarter-on-quarter basis, core income rose by 5.4%, reflecting steady business growth.

M&M Financial Q1 FY26 Earnings: Profit Up Slightly

Net profit grew 3.2% year-on-year to ₹530 crore, but fell 6% from the previous quarter due to increased provisions. The company set aside ₹660 crore this quarter—up 44.3% from ₹457 crore in Q4FY25—affecting overall profitability.

M&M Financial Q1 FY26 Earnings: Operating Profit Improves

Pre-Provisioning Operating Profit (PPoP) stood at ₹1,353 crore, marking a healthy 19.3% rise from the same period last year. This suggests the company’s operational performance remains strong despite challenges in asset quality.

Asset Quality Under Pressure

The share of bad loans, or Gross Stage 3 assets, rose slightly to an estimated 3.8%–3.9% from 3.7% a year ago. Collection efficiency also dipped to 95% from 97% in March, showing a decline in loan recovery performance.

Disbursement and AUM Update

M&M Financial had already released its June quarter business update. Disbursements grew only 1% YoY, compared to 5% growth in Q1 last year. However, Assets Under Management (AUM) increased by 14.5% YoY to ₹1.21 lakh crore, indicating strong loan book growth.

M&M Financial Share Price Performance

As of 11:29 AM IST on July 23, Mahindra and Mahindra Financial Services share price (NSE: M&MFIN) was trading at ₹259.00, down 2.47% or ₹6.55 for the day. The stock opened and hit a high of ₹266.95, with the day's low at ₹257.05. The company has a market capitalisation of ₹35,980 crore, a price-to-earnings (P/E) ratio of 14.53, and a dividend yield of 2.51%. The stock’s 52-week high is ₹333.72, while the 52-week low stands at ₹231.52. The latest quarterly dividend announced by the company amounts to ₹1.63 per share.

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Conclusion

M&M Financial delivered solid growth in NII and operating profit, but rising provisions and stressed assets weighed on overall profitability. The company’s asset quality and collection efficiency remain key areas to monitor going forward.

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