Mahindra & Mahindra Financial Services Ltd (M&M Finance) shares rallied over 7% in early trade on Wednesday, October 29, 2025, after the company posted a strong set of Q2 FY26 results, showcasing healthy profit growth and stable asset quality. As of 9:22 AM, the shares were trading 4.33% higher at Rs 312.90.
The non-banking finance company (NBFC) reported a net profit of ₹564 crore, marking a 45% year-on-year (YoY) increase compared to ₹389 crore in the same quarter last year. The strong performance was driven by steady growth in disbursements, a rising loan book, and improved operational efficiency.
M&M Finance’s Net Interest Income (NII) rose 14.6% YoY to ₹2,279 crore, up from ₹1,988 crore in Q2 FY25, reflecting robust loan demand and better yields. The company’s loan book expanded 13% YoY, supported by healthy disbursements across segments.
During the quarter, total disbursements grew 3% YoY to ₹13,514 crore. Notably, the tractor financing segment delivered an impressive 41% YoY jump in disbursements, underscoring strong rural demand and steady farm sentiment.
On the asset quality front, M&M Finance maintained stability within its guided range. Gross Stage 3 (GS3) loans stood at 3.9%, while Stage 2 plus Stage 3 (GS2+GS3) loans were at 9.7%. The credit cost for the quarter was 2.2%, indicating disciplined risk management and strong collection efficiency.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
