Mahindra & Mahindra Financial Services Limited has informed the Exchange about Transcript of Earnings Conference Call - Q2 FY26

Mahindra Finance reported a steady Q2 FY26 with AUM growth of 13% and income growth of 14%, while NIMs expanded meaningfully from 6.5% to 7% year-on-year, driven by a 30 bps drop in cost of funds and improved fee-based income (now 1.4% of average assets). Half-year PAT grew 25% to Rs. 1,100 crores. Asset quality held up better than seasonal norms: GS2+GS3 came in at 9.72% (vs 10.26% last year Q2), with Stage-3 rising only 9 bps and Stage-2 actually falling 7 bps quarter-on-quarter. Tractor disbursements surged 41% YoY and used vehicle disbursements rose 14%, while SME grew around 12% YoY. Management reiterated its full-year credit cost guidance of 1.7% (vs 1.3% last year, which had a one-time PCR release benefit) and PCR cover was raised to 53% from 51.4%. The HFC subsidiary turned profitable with GS3 below 3% after an ARC transaction. Management is optimistic on H2 FY26, citing GST 2.0 tailwinds and festive demand, expecting ~12% PV volume growth in H2 vs 4% in H1 and 18-20% tractor growth.