M&M Financial Services Q2 net profit falls 48% to Rs 235 crore

M&M Financial Services' Net Interest Margin (NIM) was at 6.5 percent.

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26 Aug, 2025 12:21

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Mahindra & Mahindra Financial Services on October 27 reported a 47.6 percent fall in its net profit to Rs 235 crore in the first quarter of the current financial year. The company had posted a net profit of Rs 448 crore in the year-ago period.

M&M Financial's total income was at Rs 3,240 crore for the reporting quarter, an increase of 24 percent on-year aided by growth in asset book.

Net Interest income came at at Rs 1,674 crore increased by 9 percent on-year.

Net Interest Margin (NIM) of the company in July-September quarter was at 6.5 percent. According to the release, it was impacted by higher borrowing rates coupled with change in portfolio mix in favour of better credit quality customers.

Gross Stage 3 level was maintained at 4.3 percent, similar to June end level. Gross Stage 2 improved from 6.4 percent to 5.7 percent during the same period.

The credit cost during Q2FY24 was at Rs 627 crore (2.4 percent of average assets) as compared to Rs 198 crores (1.0 percent) in Q2FY23.

The net write-offs were lower at Rs 351 crore compared to Rs 543 crore during Q2FY23.

In the reporting quarter, the company witnessed a sharp improvement in both Stage 2 and Stage 3 leading to a provision write-back of Rs 345 crores, release said.

Both Stage 2 and Stage 3 have now stabilized at more normalized levels. The provision charge for Q2 FY24 was Rs 276 crore, release added.

The Company’s Capital Adequacy is healthy at 18.7 percent. Provision coverage on Stage 3 loans remained prudent at 61.2 percent.

Subsidiaries

Mahindra Rural Housing Finance

Mahindra Rural Housing Finance registered a net profit  Rs 11.6 crore during the quarter ended September 30, 2023, as against Rs 31.1 crore during the corresponding quarter last year.

During the quarter ended September 30, 2023, MRHFL registered income at Rs 331 crore as against Rs 328 crore during the corresponding quarter last year, a growth of 1 percent over the same period previous year.

Mahindra Insurance Brokers

Mahindra Insurance Brokers reported a net profit of Rs 28.6 crore in July-September quarter as against Rs 6.1 crore during the corresponding quarter last year, a growth of 365 percent over the same period previous year.

The income of the company grew to Rs 289 crore in second quarter of current financial year, as against Rs 94 crore during the corresponding quarter last year.