Mahindra & Mahindra Financial Services reported a 32% year-on-year decline in net profit to Rs 456 crore for the fourth quarter ended March 31, 2025 (Q4 FY25), compared to Rs 671 crore in Q4 FY24. The sharp fall in profit was primarily due to a significant surge in provisions and write-offs, which more than doubled from Rs 370 crore to Rs 697 crore.
Despite the profit decline, the company posted healthy growth in operating performance. Revenue from operations rose 14% YoY to Rs 4,886 crore, while net interest income (NII) grew 10% YoY to Rs 2,668 crore. Total income came in at Rs 2,679 crore, up 8% from Rs 2,472 crore in the year-ago quarter.
The company’s expenses saw a rise across categories. Employee benefit expenses rose 9% YoY to Rs 608 crore, while other expenses increased 18% to Rs 696 crore. Depreciation and amortization also rose 17% YoY to Rs 85 crore. Total expenses stood at Rs 1,389 crore for the quarter, up 14% YoY.
Pre-provisioning operating profit (PPOP) came in at Rs 1,290 crore, reflecting a 3% rise from Rs 1,250 crore in the previous year. However, the jump in provisioning impacted the profit before tax, which stood at Rs 609 crore, down 32% from Rs 896 crore in Q4 FY24.
Tax expenses declined 32% YoY to Rs 153 crore, but this was not enough to offset the hit from provisions, leading to a net profit of Rs 456 crore for the quarter.
The company continues to maintain strong disbursement and AUM momentum. Disbursements in Q4 FY25 stood at Rs 15,530 crore, up 2% YoY, while assets under management (AUM) rose 17% YoY to Rs 1.19 lakh crore.
