Mahindra Finance Q1 Profit Up 6% to Rs 529 cr

Mumbai, Jul 22 (PTI) Mahindra Finance on Tuesday reported a 6 per cent increase in consolidated net profit to Rs 529 crore in the June quarter.

The city-headquartered company had posted a net profit of Rs 497 crore in the corresponding period a year ago.

On a standalone basis, its profit after tax rose 3 per cent to Rs 530 crore in the first quarter of FY26 against Rs 513 crore in the year-ago period, but was 6 per cent lower than the preceding March quarter's PAT of Rs 563 crore.

The company's disbursements grew 1 per cent to Rs 12,808 crore during the reporting quarter, while the gross loan book on June 30 was 15 per cent higher at Rs 1.22 lakh crore.

Its total income climbed 18 per cent to Rs 4,438 crore in Q1FY26, and the core net interest income increased by a similar quantum to Rs 2,285 crore, according to a regulatory filing.

The net interest margin widened to 6.7 per cent from 6.6 per cent a year ago.

The credit costs jumped 47 per cent to Rs 660 crore or 1.9 per cent of average total assets against 1.5 per cent a year ago.

The overall capital adequacy stood at 20.6 per cent on June 30, with the core tier-1 capital at 17.9 per cent.

Shares of Mahindra and Mahindra Financial Services gained 1.01 per cent to close at Rs 265.60 apiece on the BSE, as against a 0.02 per cent correction on the benchmark.