Mahindra Finance Reports 55% Surge in Q4 Profit to ₹873 Crore
Mahindra Finance Q4 PAT climbs 55% YoY to Rs 873 cr
Business Standard
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Mahindra & Mahindra Financial Services reported a 55.02% increase in standalone net profit to ₹872.98 crore for Q4 FY26, up from ₹536.14 crore in Q4 FY25. Total income rose by 13.30% to ₹4,810.07 crore. The company attributed this growth to improved collection efficiency and strong disbursements, particularly in the tractor segment.
- 01Standalone net profit increased by 55.02% to ₹872.98 crore for Q4 FY26.
- 02Total income grew by 13.30% year-on-year to ₹4,810.07 crore.
- 03Disbursements in Q4 FY26 reached ₹17,184 crore, an 11% increase YoY.
- 04Mahindra Finance recommended a ₹7.50 dividend per equity share for FY26.
- 05Asset quality showed improvement with Stage 3 assets at 3.4%.
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Mahindra & Mahindra Financial Services (Mahindra Finance) reported a 55.02% increase in standalone net profit, reaching ₹872.98 crore for the fourth quarter of FY26, compared to ₹536.14 crore in the same period last year. Total income also saw a rise of 13.30%, amounting to ₹4,810.07 crore. The profit before tax was ₹1,161.34 crore, a 53.68% increase from ₹755.66 crore in Q4 FY25. The company's net interest margin improved to 7.5%, up from 6.5% a year earlier, while disbursements grew by 11% to ₹17,184 crore. The collection efficiency improved to 98%, reflecting the effectiveness of new digital workflows and a focus on early delinquencies. Mahindra Finance also recommended a dividend of ₹7.50 per equity share for the financial year ended March 31, 2026. The company, which serves over 12 million customers, continues to focus on profitable growth in the rural and semi-urban sectors. The stock closed down 0.88% at ₹294.30 on the Bombay Stock Exchange.
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The growth in profit and disbursements indicates a positive trend for customers seeking loans, particularly in the rural and semi-urban sectors. Improved collection efficiency may lead to better loan availability and terms for borrowers.
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