Mahindra & Mahindra Financial Services Q3 Updates: Projects Rs 16,450 Crore Disbursement

Mahindra & Mahindra Financial Services Ltd. estimated a total disbursement of approximately Rs. 16,450 crore during the third quarter of the financial year ending March 2025, reflecting a 7% year-on-year growth.

The disbursement is expected to reach about Rs. 42,350 crore for the first nine months of financial year 2025, marking a 4% year-on-year growth, according to an exchange filing on Friday.

Business assets of the company grew by approximately 18%, reaching Rs. 1,14,900 crore as of December 2023.

The collection efficiency for the October-December quarter of fiscal 2025 stands at 95%, consistent with the same period in fiscal 2024. As of Dec. 31, 2024, Stage-3 assets are estimated at 3.9%, a slight improvement from 4.0% on Dec. 31, 2023, the filings said.

Additionally, the stage-2 assets are at 6.3%, compared to 6.0% a year earlier. The company maintains a strong liquidity position, with a liquidity reserve exceeding Rs. 9,100 crore on its balance sheet.

Mahindra and Mahindra Financial Services reported a 57% increase in net profit, to Rs 369 crore, for the July-September quarter of fiscal 2025 compared to Rs 235 crore in the same period last year.

The company's total income rose by 19% to Rs 1,991 crore, while its net interest income rose by 19% to Rs 1,963 crore, up from Rs 1,646 crore.

The NII margin remained intact at 6.5%, and the cost of funds increased to 6.5% in the second quarter of fiscal 2025 from 6.4% in the previous year.

Shares of Mahindra and Mahindra Financial closed 0.27% higher at Rs 276.45 apiece on the National Stock Exchange, compared to a 0.76% fall in the benchmark Nifty. The share price has fallen 0.29% in the last 12 months.

Out of the 37 analysts tracking the company, 15 have a 'buy' rating on the stock, 14 recommend 'hold,' and eight maintain 'sell,' according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 8.1%.