Shah noted that the efforts made over recent years have bolstered the company’s enterprise management, internal controls, compliance frameworks, and risk processes, leading to visible improvements in asset quality.
“Our initiatives have resulted in strong business performance. Our Assets Under Management surged by 12% to ₹1.34 lakh crore over the year. Profitability increased by 27% on a consolidated basis, despite a challenging operating environment,” he remarked. He further indicated that the company’s gross stage-3 (GS3) assets improved to 3.4% during FY26.
Emphasis on governance and technology
Shah expressed that the financial services sector is rapidly evolving, with stricter regulatory expectations, technology-driven changes in customer experiences, and a growing emphasis on risk management. “In this landscape, institutions that uphold strong governance, foster a culture of innovation, and exhibit execution discipline will be best positioned to create lasting value,” he noted.
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According to Shah, Mahindra Finance has continued to enhance its enterprise management, compliance frameworks, and internal controls throughout the year while implementing world-class risk processes. Technology has been a pivotal enabler through Project Udaan, which has helped establish a more robust digital and operational foundation across the organization.
“Currently, data analytics and artificial intelligence are empowering us to make more informed decisions, improving risk identification, boosting productivity, and delivering an exceptional customer experience. We recognize the concerns regarding potential vulnerabilities that technology may present and are dedicated to responsibly adopting digital capabilities,” Shah stated.
Growth with balanced risk
Shah mentioned that the company aims to continue developing a diversified financial services franchise while maintaining its leadership in vehicle finance.
“Our position in vehicle finance is central to our business. Simultaneously, we are progressively building a more diversified financial services portfolio by strengthening customer relationships, broadening our product offerings, and utilizing our distribution network,” he shared.
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“Our goal is not only to grow more rapidly but to do so with discipline, consistency, and a balanced risk appetite while adhering to our guiding purpose,” he added.
Financial inclusion as a core mission
Shah emphasized that Mahindra Finance’s mission transcends mere financial performance, highlighting that the company has dedicated over three decades to improving access to formal financial services in rural and semi-urban areas of India.
“For more than thirty years, your company has focused on increasing economic participation by providing formal financial services to millions across rural and semi-urban India. This mission continues to guide all our decision-making,” he remarked.
He further stated that the aim for long-term value creation is intrinsically linked to responsible conduct, sustainability, community development, and financial inclusion.
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Looking forward, Shah expressed confidence in the next phase of growth for the company. “As we gaze into the future, we do so with both confidence and humility. With strong leadership under Raul Rebello, and an experienced board, we are excited about this next phase for an institution that is robust, agile, and ready for the future,” he concluded.
