Mumbai: Mahindra & Mahindra Financial Services Ltd. on Tuesday announced its standalone financial results for the first quarter ended 30 June 2026, reporting a substantial rise in net profit and total income.
Standalone Profit Growth
The company's standalone net profit after tax for Q1 FY27 stood at ₹898.65 crore, a 70% jump from ₹529.50 crore recorded in the same quarter last year. This also represents a 3% increase quarter-on-quarter from ₹872.98 crore in Q4 FY26.
Total Standalone Income
Total standalone income for the quarter ended 30 June 2026 was ₹4,973.95 crore. This is an increase from ₹4,437.75 crore in the year-ago quarter and ₹4,810.07 crore in the preceding quarter.
Revenue from Operations
Standalone revenue from operations reached ₹4,972.12 crore for the quarter. This marks an increase compared to ₹4,419.37 crore in Q1 FY26 and ₹4,799.96 crore in Q4 FY26.
Earnings Per Share
Basic earnings per share (EPS) on a standalone basis increased to ₹6.47 for the first quarter of FY27. This is up from ₹4.07 in Q1 FY26 and ₹6.28 in Q4 FY26.
Impairment on Financial Instruments
The company reported an impairment on financial instruments of ₹569.71 crore for the quarter. This is lower than ₹659.67 crore in the year-ago quarter.
Asset Quality Ratios
Gross Stage 3 Assets as a percentage of gross loan assets stood at 3.45% as of 30 June 2026. This improved from 3.85% in the year-ago quarter and was slightly higher than 3.41% in the preceding quarter.
Liquidity Coverage Ratio
Mahindra Finance reported a standalone Liquidity Coverage Ratio (LCR) of 281% for the quarter ended 30 June 2026. This is higher than 224% in the previous quarter but lower than 322% in the year-ago quarter.
Subsidiary Merger Proposal
The Board had previously given in-principle approval to evaluate a scheme of merger by absorption of Mahindra Rural Housing Finance Limited (MRHFL) with the company. MRHFL is a 98.43% owned subsidiary.
Exceptional Items Disclosure
The previous fiscal year ended March 31, 2026, included an exceptional item of ₹117.33 crore. This related to the impact of implementing new labour codes, resulting in a one-time increase in employee benefit expense provisions.
Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.
