Mumbai, January 28, 2025 – Mahindra & Mahindra Financial Services Limited (NSE: M&MFIN, BSE: 532720)has announced its Q3 FY25 financial results, reporting a net profit of ₹899.47 crore, while revenue from operations grew 20.2% YoY to ₹4,143 crore, reflecting strong growth in vehicle financing and rural lending segments.
Key Financial Highlights – Q3 FY25 (Standalone)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹4,143 crore | ₹3,453.63 crore | +20.2% |
| Total Income | ₹4,144.39 crore | ₹3,490.42 crore | +18.7% |
| Net Profit (PAT) | ₹899.47 crore | ₹552.79 crore | +62.7% |
| Net Interest Income (NII) | ₹3,957.16 crore | ₹3,373.26 crore | +17.3% |
| Earnings Per Share (EPS) | ₹7.28 | ₹4.48 | +62.5% |
| Gross NPA Ratio | 3.93% | 3.97% | -4 bps |
| Net NPA Ratio | 2.00% | 1.52% | +48 bps |
- Revenue: ₹11,762.69 crore (+20.6% YoY).
- Net Profit: ₹1,781.90 crore (+56.2% YoY).
Segment-Wise Performance & Key Highlights
- Vehicle Finance: Contributed 80% of total disbursements, led by demand for commercial and utility vehicles.
- SME & Business Loans: Increased focus on rural MSME lending, contributing ₹3,500 crore to total loan book.
- Insurance Broking Business: Recorded 15% YoY revenue growth, benefiting from digital insurance penetration.
- Provision Coverage Ratio: 50.11%, maintaining a conservative risk strategy.
Key Corporate Announcements
1. Board Approves Employee Stock Option Plan (ESOP) Allotment
- 4,44,488 equity shares allotted under the employee stock option scheme (ESOP).
- Total equity share capital increased to ₹246.97 crore.
2. Dividend Declaration & Shareholder Returns
- No interim dividend was declared as the company focuses on capital retention for business expansion.
3. Capital Adequacy & Debt Management
- Capital Adequacy Ratio: 17.81%, exceeding RBI’s minimum requirement.
- Debt-to-Equity Ratio: 5.44x, showing a stable leverage position.
Management Commentary
Raul Rebello, Managing Director & CEO, Mahindra Finance, stated:"Our strong revenue growth and profitability reinforce our leadership in rural and semi-urban financing. With strategic risk management and technology-driven lending solutions, we remain committed to delivering sustainable financial inclusion."
Strategic Outlook & Investor Expectations
- Expansion in rural lending & microfinance segments.
- Continued improvement in asset quality and provisioning measures.
- Focus on fintech partnerships to enhance digital lending.