Mahindra & Mahindra Financial Services Limited has informed the Exchange about Transcript of Earnings Conference Call- Q1 FY2026.
M&MFIN · price
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Awaiting price reaction for this filing.
Mahindra Finance reported a stable Q1 FY26 with PAT of Rs. 530 crore (up 3% YoY), including a Rs. 46 crore dividend from subsidiary MIBL which management expects to be recurring. Disbursements were nearly flat at 1% growth, while the loan book grew 15% and income rose 18%. Tractor lending was a standout with 21% disbursement growth, whereas the CV segment saw a 12% decline due to deliberate margin-led calibration. The company indicated NIMs have bottomed out at 6.5% with positive sequential movement, supported by improving fee-based income. Asset quality remained stable with GS2+GS3 at 9.7%, and credit cost guidance for FY26 was maintained at 1.3%-1.7%. The post-rights issue capital position is strong with Tier 1 at 17.9% and debt-equity at 4.75x, with no further capital raise planned. Management reiterated a medium-term aspiration of mid-teen disbursement, book, and earnings growth, banking on rural tailwinds from a well-distributed monsoon, strong Kharif sowing, and a consolidated festival season.
Stable quarter with margin bottoming out and capital well-positioned post the Rs. 3,000 crore rights issue supports future growth. The tractor-led momentum and improving fee income are positives, but near-term growth remains muted given stress in entry-level PVs and CVs. Investors can take comfort from the NIM floor being established, though acceleration in disbursements is needed to drive re-rating.