Mahindra Financial Services reports 54% jump in net profit to ₹569 crore, loan book grows 13%

Mahindra & Mahindra Financial Services said on Tuesday that its net profit for the quarter ended September 30 grew by 54% to ₹569 crore. Its loan book grew 13% to ₹1.27 lakh crore, while disbursements grew 3% year over year to ₹13,514 crore.

The company said that while overall disbursement growth was relatively subdued, tractor disbursements grew 41% year over year. It should be noted that as part of the GST reforms, the government reduced GST on tractors to 5%. According to the Federation of Automobile Dealers Association, 64,785 tractors were sold in September, compared to 62,527 tractors in September of last year.

Its collection efficiency remained similar to the year-ago period of 96%, which, according to Mahindra, reflected continued resilience in customer repayments. Its net interest income grew 22% year over year to ₹2,423 crore. Its asset quality remained within the guided range, with GS3 at 3.9% and GS2+GS3 at 9.7%.

Mahindra Financial continues to maintain its leadership position in tractor financing, the company stated and is among the leading NBFCs for financing passenger vehicles, light commercial vehicles, small commercial vehicles, tractors, and used passenger vehicles. However, Mahindra Finance said that diversification beyond vehicle financing is a key priority for the company, and its non-vehicle finance continues to grow 33% year-on-year.

It also has a specific focus on the MSME sector in India—recognising its growth potential—especially in the micro and the small segments. Its asset book in the MSME sector expanded by 34% year on year to ₹6,911 crore. According to Mahindra Finance, growth is driven by secured offerings, including Loan Against Property (LAP). Asset quality in the segment remained strong, according to Mahindra, with stage 3 assets at 1.4% at the end of the quarter.

Mahindra Financial also said that it is witnessing “encouraging adoption” of its digital insurance portal, which was launched last quarter. The portal, which covers life, health, and general insurance, allows customers to generate quotes, submit proposals, and make hassle-free digital payments. Its leasing business also shows momentum, driven by “reasonable growth” in the B2B segment and a “measured expansion” in the B2C segment.

Mahindra Financial Services shares closed 0.25% higher on Tuesday at ₹299.85 apiece.