Mahindra Finance enters next phase of responsible growth after 27% profit rise, ₹1.34 lakh crore AUM, says Anish Shah

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is entering its next phase of responsible and sustainable growth after reporting a 27% rise in consolidated profit and a 12% increase in assets under management (AUM) to ₹1.34 lakh crore in FY26, Chairman Dr. Anish Shah said.

He attributed the company's improved performance to sustained investments in governance, enterprise risk management, internal controls, technology and people, which have strengthened the NBFC's ability to grow while maintaining a balanced risk profile.

Addressing shareholders at the company's Annual General Meeting, Shah stated, "India continues to offer a supportive backdrop for financial services companies despite global uncertainties, with strong domestic demand, improving rural sentiment, infrastructure spending and accelerating digital adoption reinforcing the country's long-term growth prospects."

He added that as regulatory expectations become more stringent and technology reshapes customer experiences, institutions with robust governance, innovation and disciplined execution will be best placed to create sustainable long-term value.

Risk management, governance anchor strategy

Shah said Mahindra Finance has spent the past several years strengthening the fundamentals of its business, with FY26 marking another milestone in its transformation journey.

"Through the year, we continued to focus on enterprise management, internal controls and our compliance framework in addition to bringing in world-class risk processes. The results of these efforts are reflected in asset quality, which improved meaningfully with GS3 at 3.4%," he said.

Beyond processes, Shah said the company has invested significantly in leadership development and organisational culture. "We developed leadership capabilities across the organisation, nurturing frontline talent and building a culture anchored in accountability, customer centricity and continuous learning. We believe this investment in our people and culture will be our competitive advantage as we lean into the future," he added.

AI, Project Udaan power next phase of growth

Highlighting technology as a key business enabler, Shah said Project Udaan has created a stronger digital and operating backbone across the organisation, enabling Mahindra Finance to use data analytics and artificial intelligence across critical functions.

"Today, data analytics and artificial intelligence are helping us make better decisions, strengthening risk identification, enhancing productivity and delivering superior customer experience. We are aware of some of the worries around vulnerabilities technology may bring and are committed to adopting digital capabilities responsibly," he said.

Shah said the company's leadership in vehicle finance remains at the core of its franchise, while it is steadily diversifying its financial services portfolio by deepening customer relationships, expanding relevant product offerings and leveraging its distribution network. "Our objective is not merely to grow faster, but to grow with discipline, consistency and a balanced risk appetite," he noted.

Financial inclusion remains central

Reiterating the company's long-term purpose, Shah said Mahindra Finance remains committed to expanding formal financial services across rural and semi-urban India, where it has operated for more than three decades.

"Our purpose extends well beyond financial performance. For more than three decades, your company has worked to expand economic participation by bringing formal financial services to millions of customers across rural and semi-urban India. We firmly believe that long-term value creation is inseparable from responsible conduct, sustainability, community development and financial inclusion. This purpose remains our north star and will continue to guide the team," he said.

Healthy financial performance

The AGM commentary comes close on the heels of Mahindra Finance's strong first-quarter performance for FY27. The company reported a 70% year-on-year jump in standalone profit after tax (PAT) to ₹899 crore for the quarter ended June 30, while assets under management (AUM) rose 13% to ₹1.37 lakh crore. Disbursements increased 22% to ₹15,564 crore, the highest ever for a first quarter, while net interest margin expanded to 7.3% from 6.7% a year ago. Credit costs improved to 1.5% from 1.9%, reflecting continued improvement in asset quality, while the consolidated PAT climbed 75% year-on-year to ₹927 crore during the quarter.

Looking ahead, Shah expressed confidence that the company is well positioned to capitalise on emerging opportunities while remaining focused on prudent execution. "The opportunities before us are significant, so are the responsibilities that accompany them. Guided by a strong leadership team under the stewardship of Mr Raul Rebello, and supported by an experienced board, we are looking forward to this next phase with an institution that is strong, agile and prepared for the future," he added.