Net interest income (NII) for the quarter surged by 24.8% to ₹2,709.3 crore from ₹2,171.2 crore in the previous year. Assets under management (AUM) rose by 12% year-on-year, and disbursements increased by 11% during the quarter. Net interest margin (NIM) expanded by approximately 101 basis points year-on-year to 7.5%, while the credit cost was recorded at 1.5% in Q4F26, up from 1.4% in Q4F25, including overlays.
For the entire year, profit after tax saw a 19% year-on-year increase after accounting for the labor code impact and management overlays. Annual disbursements rose by 6% year-on-year, and NIMs increased, aided by higher fee income and a lower cost of funds.
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Credit cost was recorded at 1.7% for FY26, reflecting provisioning alongside overlays. Asset quality stayed within the anticipated range, with GS3 at 3.4% and GS2 plus GS3 at 8.2%, bolstered by sourcing standards and collection efficiency.
The company displayed a capital adequacy ratio of 18.8%, with Tier-1 capital at 16.7%. Provision coverage on GS3 was noted at 59% through management overlays, and liquidity buffers were maintained at over ₹9,100 crore.
Regarding overall business performance, quarterly disbursements reached ₹17,184 crore, marking an 11% year-on-year increase despite geopolitical challenges, with demand bolstered by GST rate reductions. Tractor disbursements experienced a 63% year-on-year rise in the quarter, indicating a shift toward profitable growth. Business assets climbed to ₹1,34,096 crore, reflecting a 12% year-on-year growth, propelled by tractors, passenger vehicles, and MSME-led secured lending.
Asset quality showed improvement both sequentially and year-on-year, with Stage 3 assets at 3.4% and Stage 2 at 4.8%, demonstrating enhanced slippage control. Collection efficiency grew to 98% in Q4FY26 from 97% in Q4FY25, supported by digital workflows, data-driven prioritization, and early delinquency focus.
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In the SME segment, the asset book stood at ₹8,090 crore as of March 31, 2026, representing a 32% year-on-year increase, primarily driven by Loan Against Property, which saw a 41% year-on-year growth.
Consolidated Results
The company reported a consolidated total income growth of 14% year-on-year to ₹5,560 crore for the quarter ending March 31, 2026, up from ₹4,897 crore in the same quarter last year. Net profit for the quarter was ₹940 crore, compared to ₹456 crore a year prior.
For FY26, consolidated total income increased by 14% year-on-year to ₹21,087 crore from ₹18,530 crore in the previous year. Net profit for the fiscal year rose by 27% to ₹2,861 crore, against ₹2,261 crore in FY25.
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The company has proposed a dividend of ₹7.50 per equity share of face value ₹2 each, corresponding to 375%, for the financial year ended March 31, 2026. This dividend, subject to approval by shareholders at the Annual General Meeting on July 21, 2026, will be distributed post-meeting through permitted channels to eligible shareholders or their mandates.
Shares of Mahindra & Mahindra Financial Services Ltd closed at ₹295.00, down by ₹1.90, or 0.64%, on the BSE.
