Mahindra Finance Reports 55% Increase in FY26 Profit After Tax, Declares Dividend
Mahindra Finance FY26 PAT jumps 55% YoY to Rs 2,782 crore. Rs 7.5/share dividend declared
The Economic TimesImage: The Economic Times
Mahindra Finance, part of the Mahindra Group, reported a 55% year-on-year increase in profit after tax (PAT) for FY26, reaching ₹2,782 crore. The company also declared a final dividend of ₹7.50 per share, up from ₹6.50 the previous year, reflecting strong growth driven by margin expansion and asset quality.
- 01Profit after tax (PAT) for FY26 reached ₹2,782 crore, a 55% increase year-on-year.
- 02Disbursements rose by 11% to ₹17,184 crore.
- 03Assets under management (AUM) increased by 12% to ₹71.34 lakh crore.
- 04Net interest margins expanded by 101 basis points to 7.5%.
- 05Final dividend proposed at ₹7.50 per share, up from ₹6.50 last fiscal year.
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Mahindra Finance, a subsidiary of the Mahindra Group, reported a 55% year-on-year growth in profit after tax (PAT) for the fiscal year 2026, totaling ₹2,782 crore, up from ₹2,345 crore in FY25. This growth was attributed to margin expansion and consistent asset quality. The company's disbursements increased by 11%, reaching ₹17,184 crore, while assets under management (AUM) rose by 12% to ₹71.34 lakh crore. The net interest margins improved significantly, expanding by 101 basis points to 7.5%, reflecting enhanced yields. Mahindra Finance's asset quality remained stable, with gross stage 3 assets at 3.4% and combined stage 2 and 3 assets at 8.2%. In light of these results, the board has proposed a final dividend of ₹7.50 per fully paid equity share, representing a 375% payout on the face value of ₹2, compared to ₹6.50 per share from the previous fiscal year. Raul Rebello, Managing Director and CEO, emphasized that the company's disciplined execution in growth, margins, and risk management contributed to this significant profitability increase.
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The strong financial performance may lead to increased investor confidence and potentially higher share prices, benefiting shareholders.
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