Mahindra & Mahindra Financial Services (M&MFIN) Q3 25/26 earnings summary

Executive summary

• Completed business transformation project (Udaan), achieving 95% channel adoption, 100% digital onboarding and collections, and a visible step-up in profitability and asset quality stabilization.

• PAT up 76% year-over-year for nine months FY26 (excluding prior year provision release and current year labor code impact).

• Pivoting to a growth phase, supported by investments in products, channels, systems, and a recent rights issue.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, were approved by the Board with a clean review report.

• The group includes subsidiaries in insurance broking, rural housing finance, and joint ventures in asset management and trusteeship.

Financial highlights

• Q3FY26 standalone PAT at ₹907 crore, up 1% YoY (excluding labor code impact), and 59% QoQ; nine months PAT up 76% YoY (adjusted).

• Q3 ROA reached 2.5% (includes one-time benefits); nine months ROA at 1.9%.

• NIM for nine months FY26 at 7.1%, up from 6.6% YoY; Q3 NIM at 7.5% (includes one-time benefits).

• Total income for Q3FY26 at ₹4,763 crore, up 15% YoY; AUM at ₹1,28,965 crore, up 12% YoY.

• Disbursements for Q3FY26 at ₹17,612 crore, up 7% YoY; nine months disbursements at ₹43,934 crore, up 4% YoY.

Outlook and guidance

• Confident in sustaining credit costs within 1.5%-1.7% range; nine months YTD at 1.8%.

• Targeting mid- to high-teens CAGR loan book growth over the medium term, with diversification into mortgages and SME.

• Aiming to reduce Wheels business mix from 88% to 70% by FY30, increasing share of mortgages and SME.

• ROA target is 2%, with long-term ambition to reach 15% ROE.

• The company continues to monitor regulatory changes, including new Labour Codes, and will assess accounting implications as further guidance emerges.