Mahindra Finance Shares in Focus: PAT Slipped 32% YoY, Proposed Final Dividend of ₹6.50

On April 23, 2025, Mahindra Finance share price is on investors’ radar as the company released its earnings for Q4FY25 on April 22. For FY25, Mahindra Finance recommended a final dividend of ₹6.50 per equity share (face value ₹2), representing 325%, slightly higher than last year’s ₹6.30.

M&M Financial Q4FY25 Highlights (Standalone)

Mahindra Finance posted a 33% year-on-year increase in Profit After Tax (PAT) for FY25. The company’s loan book expanded by 17%, while annual disbursements grew by 3%, reflecting steady demand despite a moderate performance in the core “Wheels” business. Asset quality remained well-managed with Gross Stage 3 (GS3) assets at 3.7% and combined Stage 2 and Stage 3 assets at 9.1%. Credit costs stood at a disciplined 1.3%, reflecting effective risk control.

FY25 Consolidated Financial Performance

During Q4FY25, Mahindra Finance reported consolidated total income of ₹4,897 crore, a 13% rise compared to the same period last year and a 2% increase over Q3FY25. However, quarterly PAT declined by 32% YoY to ₹456 crore, and was also down 50% sequentially. Disbursements reached ₹16,328 crore; a marginal 1% YoY increase but 5% lower than the previous quarter. For the full year, the company delivered ₹18,530 crore in income and ₹2,261 crore in PAT, both reflecting a 16% YoY increase. Total disbursements for FY25 stood at ₹60,741 crore, up 4% from FY24.

Operational Overview

For Q4FY25, the company recorded disbursements of ₹15,530 crore, reflecting a modest 2% growth YoY. On an annual basis, disbursements rose 3% to approximately ₹57,900 crore. While overall growth was measured, the SME segment stood out with a robust 48% jump in disbursements. The company’s Gross AUM grew 17% YoY, reaching ₹1,19,673 crore.

Collection efficiency remained healthy at 97% in Q4FY25, compared to 98% a year earlier. Stage 3 assets reduced to 3.7% as of March 31, 2025 (from 3.9% in December 2024), while Stage 2 assets improved to 5.4% from 6.3%. Consistent with its goals, Mahindra Finance kept combined GS2+GS3 levels below 10%. The company also maintained a robust liquidity buffer of over ₹10,400 crore, ensuring strong financial resilience.

Also Read: Mahindra Logistics Reports 10.9% Revenue Growth in FY25; Proposed Final Dividend

Conclusion

Mahindra Finance results showcase its strategic focus on business growth. The company remains focused on strengthening its core vehicle finance business while accelerating growth in non-vehicle finance segments.

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