Mahindra & Mahindra Financial Services (M&M Financial Services) shares tumbled nearly 10% on Thursday, 22 October, even as the non-banking financial company (NBFC) posted strong earnings growth for the September quarter of FY27, driven by higher business volumes and a decline in credit costs.
The company’s consolidated net profit rose 55% year-on-year to ₹882 crore in Q2 FY27, compared with ₹569 crore in the year-ago period.
Revenue from operations grew 15% to ₹5,164 crore, while net interest income (NII) increased 17% year-on-year to ₹2,822 crore. Consolidated net profit stood at ₹911 crore, up 61%, while total assets expanded 21% to ₹1.80 lakh crore.
Asset quality-related costs showed improvement during the quarter, with credit costs declining to 1.6% of average total assets from 2.2% in the corresponding period last year. Net interest margin (NIM), however, remained steady at 7%, the company said in its regulatory filing.
For the longer term, Mahindra & Mahindra Financial Services aims to achieve a return on assets (RoA) of 2.2%–2.5% by FY31. Its RoA stood at 2.2% in the September quarter.