Mahindra and Mahindra earnings calls.

Mahindra Finance delivered a strong Q4 FY26 with PAT of ₹873 crore (+55% YoY)Current reported value: ₹873 crore (+55% YoY). No comparable prior figure is available in the source record., driven by 101 bps NIM expansionCurrent reported value: 101 bps NIM expansion. No comparable prior figure is available in the source record. quarter-on-quarter and record-low asset quality with GS3 at 3.4%Current reported value: 3.4%. No comparable prior figure is available in the source record. (down 39 bps QoQ) and GS2+GS3 at 8.18%Current 8.18%. Reported change: -39bps QoQ / Record Low. (8-year low). The company created a ₹217 crore management overlay proactively for geopolitical and monsoon-related headwinds—without this, Q4 PAT would have been ₹1,000 crore (+84% YoY). Full year FY26 PAT came in at ₹2,782 crore (+19% YoY)Current reported value: ₹2,782 crore (+19% YoY). No comparable prior figure is available in the source record., with ROA at 2% and ROE at 12.5%. Digital adoption is accelerating with 50% of disbursementsCurrent 50% of disbursements. Reported change: +50pp YoY (from baseline). now on the Udan digital stack and 25% improvementCurrent reported value: 25% improvement. No comparable prior figure is available in the source record. in AI-driven early bucket collections. Fee income-to-assets improved 30 bps to 1.4%Current reported value: 1.4%. No comparable prior figure is available in the source record., reflecting structural diversification. Capital position remains robust with Tier-1 CAR at 16.7% and total CAR at 18.8%. Management targets medium-term 16-18% AUM growthCurrent reported value: 16-18% AUM growth. No comparable prior figure is available in the source record. and aims for 15%+ ROE, leveraging operational leverage and balance sheet expansion. Risks include rural demand headwinds from inflation and fuel price hikes, MSME segment stress in remittance-dependent geographies like Kerala, and potential regulatory changes affecting insurance commission income.