Shares of Mahindra & Mahindra Financial Services Ltd (M&M Financial) declined nearly 3% on Wednesday, trading around ₹258 on the NSE, after the company reported its Q1 FY26 results with mixed signals for investors.
While the company posted healthy Net Interest Income (NII) growth, with a 19.7% year-on-year rise to ₹2,267 crore, and a 5.4% sequential improvement, concerns over rising provisions and stressed assets weighed on the sentiment.
Net profit for the quarter rose just 3.2% YoY to ₹530 crore, but declined about 6% from the March quarter, largely because of a 44.3% jump in provisions to ₹660 crore versus ₹457 crore in Q4FY25.
Stressed assets also showed an uptick — with gross Stage 3 assets estimated at 3.8%–3.9%, slightly higher than the earlier 3.7%.
The company’s collection efficiency also slipped sequentially to 95% in June from 97% in March. Although disbursements grew by 1% YoY and the Assets Under Management (AUM) rose 14.5% to ₹1.21 lakh crore, the increase in bad loans and higher provisioning signaled potential stress in asset quality, causing investor concern.
At last check, the stock was down about 2.8%, trading at ₹258 compared to its previous close of ₹265.55.
