Mahindra Finance profit rises 55% on lower credit costs

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Mahindra & Mahindra Financial Services Limited (

), popularly known as Mahindra Finance, reported standalone net profit of ₹882 crore in Q2 FY27, up 55% year-on-year. Consolidated net profit increased 61% to ₹911 crore. Revenue from operations grew 15% to ₹5,164 crore. What happened? Net interest income rose 17% to ₹2,822 crore, while pre-provisioning operating profit increased 20% to ₹1,791 crore. Provisions and write-offs declined 16% to ₹630 crore. Credit costs eased to 1.6% of average total assets from 2.2% a year earlier. Disbursements grew 22% to ₹16,499 crore, while business assets under management increased 15% to ₹1.47 lakh crore. Non-vehicle finance disbursements, including SME, personal and housing loans, rose 52%. Why does it matter? Profit growth was supported by both higher lending activity and lower credit costs. Diversification beyond vehicle financing is also gaining traction. However, lower credit costs may not continue at the same pace, making asset quality and lending discipline important to monitor. My view The quarter reflects strong business growth alongside improved credit performance. The key question is whether the company can sustain loan growth and profitability without compromising asset quality. What I am watching next I would track loan growth, credit costs, asset quality, net interest margins and the contribution of non-vehicle lending to the overall portfolio. No Recommendations Source: The Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Mahindra & Mahindra Financial Services Limited.