Mahindra & Mahindra Financial Services' Q2 FY 2025-26 Quarterly Results

Result Summary

• Mahindra & Mahindra Financial Services Ltd reported a 0.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 12.7%.
• Its expenses for the quarter were down by 2.7% QoQ and up 9.5% YoY.
• The net profit increased 7.0% QoQ and increased 45.1% YoY.
• The earnings per share (EPS) of Mahindra & Mahindra Financial Services Ltd stood at 4.06 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Mahindra & Mahindra Financial Services Ltd is a prominent Indian financial services company, primarily engaged in providing financial products and services related to loans, insurance, and asset management. It is a part of the Mahindra Group, one of the largest business conglomerates in India. The company primarily focuses on rural and semi-urban markets, offering a range of financial solutions including vehicle financing, home loans, personal loans, and insurance. While specific recent developments are not available from the data provided, Mahindra Finance has historically been active in expanding its digital capabilities and enhancing its reach across the country to better serve its customer base.

Revenue

During the second quarter of the fiscal year 2026 (Q2FY26), Mahindra & Mahindra Financial Services Ltd reported a total income of ₹5049.45 crores. This represents a quarter-over-quarter (QoQ) increase of 0.7% from ₹5013.44 crores in Q1FY26. Year-over-year (YoY), there was a notable increase of 12.7% compared to ₹4479.24 crores in Q2FY25. The growth in total income indicates a positive movement in the company's revenue streams over the observed periods. The increase in total income on both a QoQ and YoY basis may reflect the company's efforts to enhance its financial offerings and expand its market reach, although specific causal factors are not detailed in the provided data.

Profitability

In terms of profitability, Mahindra & Mahindra Financial Services Ltd recorded a profit before tax of ₹743.30 crores in Q2FY26, reflecting an 8.8% QoQ increase from ₹683.43 crores in Q1FY26 and a significant 46.2% YoY increase from ₹508.57 crores in Q2FY25. The profit after tax for Q2FY26 was ₹566.07 crores, which is 7.0% higher than the ₹528.96 crores reported in the preceding quarter and 45.1% higher than the ₹390.03 crores reported in the same quarter of the previous year. The tax expense for Q2FY26 was ₹192.66 crores, marking a 10.3% increase QoQ and a 44.9% increase YoY, indicating an increase in tax obligations consistent with higher profitability. Earnings per share remained stable QoQ at ₹4.06 but increased 29.3% YoY from ₹3.14, reflecting overall enhanced profitability.

Operating Metrics

The company's total expenses for Q2FY26 amounted to ₹3538.16 crores, a decrease of 2.7% QoQ from ₹3634.90 crores in Q1FY26, but a rise of 9.5% YoY from ₹3232.54 crores in Q2FY25. The reduction in expenses on a QoQ basis may indicate improved operational efficiency or strategic cost management, while the YoY increase aligns with the overall growth in business activities. Earnings per share, a key indicator of shareholder value, remained stable at ₹4.06 from the previous quarter, with a notable YoY increase of 29.3% from ₹3.14, suggesting enhanced earnings capacity per unit of stock outstanding over the year.