Mahindra & Mahindra Financial Services Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 5,163.51 Cr (+15.45% YoY) and PAT growth of +54.84% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 21, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 5,163.51 Cr (+15.45% YoY) |
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| PAT (Q2) | Rs. 881.52 Cr (+54.84% YoY) |
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| EBITDA margin | 80.50% |
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| EPS (Q2) | Rs. 6.34 (+54.60% YoY) |
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| Market cap | Rs. 41,446.55 Cr |
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| CMP | Rs. 297.50 |
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Quarter Snapshot
Standalone PAT grew 54.8% YoY to Rs.881.52 Cr with PPOP up 15.56% and no exceptional items, while credit cost (~1.64%), opex/avg assets (2.64%) and ROA (2.29%) landed within or ahead of management's stated guidance bands. Gross Stage-3 improved 52 bps YoY to 3.42% and subsidiaries swung to a +Rs.27.91 Cr contribution, though AUM growth of ~15% remains below the guided 16–18% band. Capital adequacy fell to 17.98% and debt-equity rose to 5.49, with the post-quarter repo hike to 5.50% a stated headwind for the 44% floating-rate book in H2.
Key Investment Insights
Key Positives
- Standalone PAT grew 54.8% YoY to Rs.881.52 Cr; H1 PAT of Rs.1,780.17 Cr (+62% YoY) equals 64% of FY26 full-year PAT
- PPOP grew 15.56% YoY to Rs.4,158.44 Cr standalone and 26.14% YoY to Rs.4,763.99 Cr consolidated
- Gross Stage-3 improved to 3.42% from 3.94% YoY; provision coverage ratio at 56.64% vs 53.00% YoY
- Disbursements grew ~22% YoY to ~Rs.16,490 Cr per the Oct 2 business update; financing segment assets grew 21.36% YoY
- Financing segment PBT margin expanded 711 bps YoY to 20.49%
- Subsidiaries swung from a −Rs.4.83 Cr drag to +Rs.27.91 Cr contribution YoY; MIBL PAT grew 83%
- Credit cost ~1.64% within the guided 1.3–1.7% band; ROA 2.29% above the 2.2% guidance step; opex/avg assets 2.64% within the 2.5–2.7% band
- Fee & commission income grew 40.27% YoY and insurance agency income grew 54.18% YoY
Risk Factors
- Capital adequacy declined to 17.98% from 19.50% YoY and 18.54% in Q1FY27
- Debt-equity rose to 5.49 from 4.99 YoY; total debts-to-total-assets rose to 83.28% from 81.92% in Q1FY27
- AUM growth of ~15% YoY remains below the guided 16–18% band floor
- NII fell 0.88% QoQ as finance costs rose 6.02% QoQ against interest income growth of 2.41%; NIM compressed QoQ to ~7.1% (est) from 7.3%
- Impairment rose 10.50% QoQ (credit cost 1.5% → 1.6%); post-quarter repo hike to 5.50% is a headwind for the 44% floating-rate book in H2
- 'Others' segment result fell 32.50% YoY to Rs.87.77 Cr with margin compressing from 31.46% to 17.23%