Mahindra & Mahindra Financial Services is a rural-focused NBFC financing tractors, vehicles and SMEs, and it heads into its Q2 FY27 print with disbursements up 22% YoY but a deficient monsoon hanging over its rural borrower base. The print will speak to whether asset quality keeps improving — Stage-3 estimated at 3.35–3.45% with 97% collection efficiency — and whether AUM growth can close the gap to management's 16–18% CAGR band, alongside the MRHFL merger update promised by Q2.
| Results date | October 21, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter disbursements | Rs. 15,564 Cr (+22% YoY) |
| Previous quarter PAT | Rs. 899 Cr (+70% YoY) |
| Previous quarter NIM | 7.3% |
| Market cap | Rs. 43,950.89 Cr |
| CMP | Rs. 316.15 |
The board meets on October 21, 2026 to approve the unaudited standalone and consolidated Q2 and H1 FY27 results (subject to limited review); the trading window is shut October 1–23.
The Q2 FY27 earnings call is scheduled for October 21, 2026 at 6:30 pm IST, hosted by MD & CEO Raul Rebello and CFO Pradeep Agrawal, after the results announcement.
The quarter's central question is whether Mahindra Finance's growth and asset quality momentum holds up against a failed monsoon — season rainfall was below 90% of LPA, the fourth-lowest since 2001 — even as the company's own October 2 update points to disbursements of ~Rs. 16,490 Cr, up 22% YoY, and business assets of ~Rs. 1,46,300 Cr, up ~15% over September 2025. Growth composition is the wrinkle: tractor retail was effectively flat in August and fell in September on patchy monsoon, so the quarter likely leaned on passenger vehicles, used vehicles and the non-wheels book, where SME AUM approached Rs. 8,000 Cr and MRHFL's loan book reached Rs. 9,174 Cr. On margins, short-term T-bill and NBFC commercial paper yields eased through July–September with the repo held at 5.25%, supporting the guided 7.1% steady-state NIM near the 7.3% Q1 print, though the Rs. 5,500 Cr excess liquidity buffer (~25 bps of spread cost) and the 7.95% September 29 NCD print cap the upside. Asset quality is the bigger swing factor: 97% collection efficiency and Stage-3 of 3.35–3.45% point toward the lower end of the guided 1.3–1.7% credit-cost band, but the Rs. 217 Cr management overlay and parked ECL-refresh benefit are the buffers to ask about as the deficient monsoon works through rural cash flows. The MRHFL merger, board-approved on August 5, 2026, is due its promised formalization update by Q2 FY27, and the post-quarter October 7 repo hike to 5.50% will test management's 'borrowing costs are at a bottom' framing for the 44% floating book.
AUM growth bridge to the 16–18% CAGR band: Q1 FY27 AUM grew 13%, below the FY26–FY31 band, while Q2 business assets grew ~15%.
NIM vs the 7.1% steady state: Q1 FY27 NIM printed at 7.3% against management's 7.1% steady-state framing.
Credit cost, collections and the Rs. 217 Cr overlay: Credit cost has run within the guided 1.3–1.7% band, at 1.5% in Q1 FY27.
MRHFL merger formalization: The Scheme of Merger of MRHFL into MMFSL was board-approved on August 5, 2026, with formalization promised by Q2 FY27.
Funding and fee income path: Borrowing costs and fee income are the supporting metrics to track.
Management has said the 7.5% NIM was not sustainable, as it carried one-time structural benefits, and that 7.1% is the near-term reflective number. Q1 FY27 NIM printed at 7.3%.
Q1 FY27 AUM grew 13%, below the 16–18% FY26–FY31 CAGR band, though the October 2 update showed business assets up ~15% over September 2025. Management has cited the strong non-wheels ambition within the band, with wheels guided to compound ~12% and non-wheels over 30%.
Management has guided credit cost in the 1.3–1.7% band for the medium term and declined fiscal-year-specific guidance. Q1 FY27 credit cost was 1.5%, within the band, and management has said it would aim for the lower end if execution remains strong.
Management has declined yearly ROA guidance, reiterating the open-ended frame of 2% rising to 2.2% and eventually 2.5%. ROA stood at 2.4% in Q1 FY27.
Total income rose 12% YoY to Rs. 4,974 Cr in Q1 FY27, with disbursements up 22% YoY to Rs. 15,564 Cr, driven by tractor disbursements (+45% YoY), passenger vehicles (+24%) and non-vehicle finance (+79% YoY including MRHFL).