Mahindra & Mahindra Financial Services Reports Strong Q1 FY27 Performance with Net Profit Rising 75% to ₹927 Crore

Mahindra & Mahindra Financial Services Limited (NSE: M&MFIN, BSE: 532754) today announced its unaudited consolidated financial results for the first quarter ended June 30, 2026.

Driven by steady growth across its core financing activities, the company registered a strong performance for the quarter, posting a 75.3% year-on-year increase in net profit alongside an expansion in total income and operational revenue.

Key Financial Highlights for Q1 FY27

Top-Line Revenue Growth

Total Income: Reached ₹5,724.81 crore for Q1 FY27, up 14.2% Y-o-Y from ₹5,013.44 crore in Q1 FY26 and up 3.0% sequentially from ₹5,559.52 crore in Q4 FY26.

Total Revenue from Operations: Stood at ₹5,717.91 crore (compared to ₹4,990.61 crore in Q1 FY26).

Interest Income: Increased to ₹4,952.19 crore, representing the largest revenue driver, compared to ₹4,468.30 crore in the same period last year.

Sale of Services & Fees: Sale of services grew to ₹452.80 crore (up from ₹306.55 crore in Q1 FY26), while fees and commission income rose to ₹246.08 crore (up from ₹165.86 crore in Q1 FY26).

Other Operating Income: Rental income contributed ₹48.13 crore, net gains on fair value changes added ₹18.71 crore, and other non-operating income stood at ₹6.90 crore.

Bottom-Line & Profitability

Profit Before Tax (PBT): Expanded 76.6% Y-o-Y to ₹1,242.22 crore, compared to ₹703.58 crore in Q1 FY26.

Net Profit After Tax (PAT): Rose 75.3% Y-o-Y to ₹927.48 crore (with ₹926.03 crore attributable to owners of the company and ₹1.45 crore to non-controlling interests), up from ₹528.96 crore in Q1 FY26.

Total Comprehensive Income: Stood at ₹938.10 crore for the quarter, compared to ₹540.25 crore in Q1 FY26.

Net Profit Margin: Improved to 16.20%, expanding significantly from 10.55% recorded in the corresponding quarter of the previous year.

Expenses & Provisioning Breakdown

Total expenditure for the quarter was controlled at ₹4,504.81 crore, compared to ₹4,330.01 crore in Q1 FY26:

Finance Costs: Stood at ₹2,372.05 crore (vs. ₹2,279.98 crore in Q1 FY26).

Impairment on Financial Instruments: Decreased to ₹567.32 crore, down from ₹695.11 crore in Q1 FY26, highlighting improved asset quality.

Employee Benefits Expenses: Reported at ₹672.89 crore (vs. ₹634.17 crore in Q1 FY26).

Fees and Commission Expense: Stood at ₹383.73 crore.

Other Expenses: Accounted for ₹409.68 crore.

Depreciation & Amortization: Stood at ₹99.14 crore.

Tax Provisioning: Total tax expense for the quarter was ₹314.74 crore (comprising ₹301.03 crore in current tax and ₹13.71 crore in deferred tax).

Segment-Wise Performance

Financing Activities

Segment Revenue: Rose to ₹5,314.65 crore (up from ₹4,678.86 crore in Q1 FY26).

Segment Profit Before Tax: Nearly doubled to ₹1,173.27 crore, compared to ₹605.81 crore in Q1 FY26.

Segment Assets: Reached ₹1,65,528.70 crore as of June 30, 2026.

Other Operations (Insurance Broking, Asset Management & Trusteeship)

Segment Revenue: Increased to ₹480.96 crore (up from ₹391.76 crore in Q1 FY26).

Segment Profit Before Tax: Stood at ₹68.95 crore (vs. ₹97.77 crore in Q1 FY26).

Segment Assets: Stood at ₹1,058.40 crore.

Per Share Data & Balance Sheet Key Figures

Basic & Diluted EPS: Rose to ₹6.66 per equity share (face value of ₹2/- each), compared to ₹4.06 in Q1 FY26.

Net Worth: Expanded to ₹27,586.24 crore as of June 30, 2026, up from ₹25,060.47 crore as of June 30, 2025.

Debt-Equity Ratio: Reported at 4.97 times.

Total Debts to Total Assets: Stood at 81.58%.

Total Assets: Consolidated balance sheet size expanded to ₹1,67,921.60 crore.

Shares of Mahindra & Mahindra Financial Services Limited was last trading in BSE at Rs. 322.60 as compared to the previous close of Rs. 324.20. The total number of shares traded during the day was 86009 in over 1380 trades.

The stock hit an intraday high of Rs. 324.10 and intraday low of 317.60. The net turnover during the day was Rs. 27631352.00.

Source : Equity Bulls

Keywords

MahindraandMahindraFinancialServices INE774D01024 NBFC Q1FY27 Q1FY2027 ResultUpdate