Financial Results – Quarter 4 and Full year FY26, Standalone & Consolidated Results

Mumbai, April 24, 2026: The Board of Directors of Mahindra & Mahindra Financial Services Limited (Mahindra Finance), a leading provider of financial services for Bharat at its meeting held today, announced the audited financial results for the quarter and year ended March 31, 2026. The Board has proposed a final dividend of Rs.7.50 per fully paid equity share (375% of face value of Rs 2/- each) Vs Rs 6.50 per share in the last fiscal year.

Speaking on the results, Raul Rebello, MD & CEO, Mahindra Finance said:

"This year’s progress across growth, margins and risk was driven by disciplined execution and resulted in a tangible step-up in profitability. Continued investments in our core vehicle franchise, new growth categories, and technology will support sustainable growth and profitability”.

Standalone Results

Quarterly Performance:

Mahindra Finance PAT up 55% YoY for the quarter, post Q4 management overlay. The Company’s AUM grew by 12% YoY and disbursements grew by 11% YoY. NIM expanded by ~101 bps YoY at 7.5% and credit cost stood at 1.5% for Q4F26 (including overlay) vs 1.4% Q4F25.

Yearly Performance:

For the full year PAT is up by 19% YoY, post labour code and management overlays. Annual disbursements grew 6% YoY. NIMs expanded during the year supported by higher Fee Income and lower Cost of Funds. Asset quality continued to be within guided range, with GS3 at 3.4% and GS2+GS3 at 8.2%, underpinned by enhanced sourcing standards & collection efficiency. The credit cost at 1.7% (including overlays), underscores prudent risk management practices.

Q4 and Full Year FY26 Standalone Results:

All % are calculated as a % of Avg. Total Assets; ¹Including Dividend and Other Income; ² Credit Cost and PAT is post labour code & management overlays.

Capital Adequacy healthy at 18.8%, Tier-1 Capital at 16.7%. Prudent Provision Coverage on GS3 at 59% through creation of management overlay. Total liquidity buffer comfortable over ~ ₹ 9,100 crores

Overall Business:

Quarterly disbursements remained healthy at ₹17,184 crore, registering an 11% YoY growth amidst geopolitical headwinds while demand momentum continued to remain positive following GST rate cuts. Tractor disbursement grew 63% YoY during the quarter, driven by consistent efforts to pivot towards profitable growth. The company’s business assets grew 12% YoY, reaching ₹1,34,096 crore, driven by tractors, PVs and MSME-led secured lending products.

Asset quality improved both sequentially and on YoY basis with Stage 3 assets at 3.4% and Stage 2 assets at 4.8%, indicating gradual normalization of the portfolio and improved slippage control. Collection efficiency improved to 98% in Q4FY26 vs 97% in Q4FY25, driven by renewed momentum in collection on account of new stack adoption, digital workflows, data-led prioritization, and sharper focus on early delinquencies.

Segment Update

Vehicle Business:

During FY26, Mahindra Finance continued to maintain its leadership position in tractor financing and remained amongst the leading NBFCs for financing passenger vehicles (PVs), light commercial vehicles (LCVs) and used passenger vehicles.

The Company continued to leverage digitally enabled field operations allowing faster sourcing, underwriting, and servicing across geographies. AI-driven early warning systems and customer self-service platforms supported improved delinquency management and customer engagement. The Company significantly scaled up MTezz, app adoption, resulting in improved productivity, quicker response to market while maintaining underwriting discipline. Company strengthened its operating model through centralized processing capabilities, enhanced fraud control frameworks, and a streamlined retail branch structure, supporting greater operating efficiency, cross-sell opportunities and customer experience.

New Engines

Diversification beyond vehicle finance remains a key strategic priority for Mahindra Finance. The non-vehicle finance portfolio continued to grow 32% YoY. The company is steadily expanding its presence across SME lending, mortgages, fee-based income through insurance and investment products and leasing. Fee Income has been witnessing growth across quarters in line with companies strategy to strengthen non-interest revenue streams.

SME:

The company recognizes the growth potential of the MSME sector in India, with specific focus on micro and small enterprises segment. Asset book at ₹8,090 crore as of March 31, 2026, expanded 32% on a YoY basis. Growth was largely driven by Loan Against Property (LAP) portfolio which grew 41% YoY.

Mortgages:

The mortgages business sustained its strong growth trajectory. Asset quality remained stable with GS3 levels sustained below 3%, reflecting disciplined portfolio management and continued strengthening of collections. Operational efficiencies improved across the network, driving faster turnaround times and sharper process controls. The business remains focused on building a scalable and high-quality mortgage franchise through stronger underwriting frameworks and enhanced digital-led customer acquisition capabilities.

Leasing:

The leasing business continued to expand its presence in the B2B domain by acquiring strategic corporate customers and deepening existing relationships. User experience was enhanced through strategic partnerships, stronger engagement rigour, hybrid channel approach, and a reinforced value proposition.

Insurance:

The insurance segment continues to witness encouraging response from customers on insurance proposition across both Life and General insurance category. Company is regularly strengthening its product portfolio to cater to the customers requirement with seamless tech enabled journey for best-in-class customer experience.

Consolidated Results

Quarterly Performance:

The Total Income increased by 14% at ₹ 5,560 crore for the quarter ended March 31, 2026, as against ₹ 4,897 crore for the corresponding quarter last year. The PAT stood at ₹ 940 crore for the quarter ended March 31, 2026, as against ₹ 456 crore during the corresponding quarter last year.

Yearly Performance:

The Total Income for FY26 increased by 14% at ₹ 21,087 crore, as against ₹18,530 crore last year. The PAT for FY26 at ₹ 2,861 crore grew 27% over last year PAT of ₹ 2,261 crore.

Credit Rating and Recognition

CRISIL, CARE Ratings, India Ratings and Brickwork have reaffirmed Mahindra Finance’s long-term debt ratings at AAA (Stable). The ratings continue to reflect our credit strength, diversified funding profile and the competitive cost at which we borrow funds.

In FY26, Mahindra Finance strengthened its sustainability leadership, by earning prestigious recognitions like ‘Significant Achievement in Domain Excellence’ at the CII‐ITC Sustainability Awards 2025 and secured the 4th position in BW Businessworld’s ranking of India’s most sustainable companies.

About Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 12 million customers. The Company is a leading vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits. The Company has 1,348 offices and reaches out to customers spread over 5,18,000 villages and 8,000 towns across the country, transformed more than 1.2 crore lives.

Mahindra Rural Housing Finance Limited (MRHFL) a subsidiary of Mahindra Finance provides loans for purchase, renovation, construction of houses to individuals in the rural and semi-urban areas of the country.

Mahindra Insurance Brokers Limited (MIBL) a wholly owned subsidiary, is the Company's Insurance Broking subsidiary is a licensed Composite Broker providing Direct and Reinsurance broking services.

Mahindra Manulife Investment Management Private Limited acts as the Investment Manager of Mahindra Manulife Mutual Fund.

Mahindra Manulife Trustee P Mahindra Manulife Trustee Private Limited (MMTPL), acts as a Trustee to Mahindra Manulife Mutual Fund.

Mahindra Ideal Finance Limited (MIFL) is a subsidiary of the Company in Sri Lanka, in which the Company owns 58.2% stake. MIFL focuses on providing a diversified suite of financial services to the Sri Lankan market. The Company has a Joint Venture in the US, Mahindra Finance USA LLC, in partnership with De Lage Landen, a subsidiary of Rabo Bank, for financing Mahindra vehicles in the US.

Learn more about Mahindra Finance on www.mahindrafinance.com / Twitter and Facebook: @MahindraFin

About Mahindra

Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with over 324K+ employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

The Mahindra Group has a clear focus on leading Environment Social and Governance (ESG) globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.

Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise/ For updates subscribe to https://www.mahindra.com/news-room

Media Contact:

Mohan Nair
Head – Communications
Mahindra & Mahindra Financial Services Limited
E-mail: [email protected]
Mobile #: +91 9004012237