Mahindra & Mahindra Financial Services Q2 Update: Loan Disbursement Fell In September Quarter

Mahindra & Mahindra Financial Services Ltd.'s overall loan disbursement fell 1% year-on-year to an estimated Rs 13,160 crore in September quarter.

The company's disbursement for the first half of financial year 2025 stood at Rs 25,900 crore, registering a 2% year-on-year growth. The business assets of the NBFC were at Rs 1,12,600 crore, which grew approximately by 20% over September 2023.

The collection efficiency was flat at 96% in the second quarter. The Stage-3 as of Sept. 30 is estimated at 3.8%, while the Stage-2 is estimated at about 6.4%.

The NBFC has a comfortable liquidity position on its balance sheet, with a liquidity trunk of over Rs 8,500 crore.

In September, the board of directors of Mahindra & Mahindra Financial Service approved the expansion into the mortgage business. The new business will include providing housing finance, top-up loans, lease rental discounting, home improvement and home expansion loans, balance transfer loans and construction finance.

The company expects to invest Rs 20-30 crore in over one year. This also includes the companies IT spends.

Mahindra & Mahindra Financial Services in September also appointed Jaspreet Singh Chadha as the Chief Business Officer—Mortgages. Chadha has over 22 years of experience across companies like Citi Bank, ICICI Bank Ltd. and Aditya Birla Management Corporation.

Shares of Mahindra & Mahindra Financial Services fell as much as 2.88% during the day to Rs 320.60 apiece on the NSE. However, it pared the gains to close 2.38% lower at Rs 322.25, compared to a 2.12% decline in the benchmark Nifty 50.

The stock has risen by 7.06% in the last 12 months and 17.10% year-to-date.

Out of the 38 analysts tracking the company, 17 maintain a 'buy' rating, 12 recommend a 'hold,' and nine suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 4.5%.