Mahindra Finance Reports 33% FY25 PAT Growth

25 Apr 2025 CW Team

The company’s gross loan book surged 17% year-on-year to Rs 1,196.7 billion as of March 31, 2025, while annual disbursements rose 3% to Rs 579 billion. Net interest income for the year grew 15% to Rs 81.76 billion, and pre-provision operating profit (PPOP) stood at Rs 47.65 billion.

Asset quality remained healthy with gross Stage 3 assets at 3.7% and GS2 + GS3 at 9.1%. The company reported a credit cost of 1.3% for the year, while maintaining a liquidity buffer of Rs 104 billion and a capital adequacy ratio of 18.3%.

In Q4 FY25 alone, PAT declined 9% year-on-year to Rs 5.63 billion due to a 34% increase in credit costs. Disbursements for the quarter stood at Rs 155.3 billion, up 2% from the previous year.

Segment highlights:

Mahindra Finance’s SME lending segment recorded 48% year-on-year disbursement growth, with the loan book reaching Rs 61.48 billion. Its Stage 3 assets in the SME portfolio remained low at 1.1%.

In the leasing business (Quiklyz), disbursements grew 31% year-on-year in FY25, with a focus on B2B and B2C models. The company also expanded its insurance offerings through 10 partner insurers and launched the first phase of its digital insurance portal.

The mortgage business is in the investment phase with focus on team expansion and tech infrastructure.

Consolidated performance:

On a consolidated basis, Mahindra Finance reported a 16% growth in FY25 PAT at Rs 22.61 billion, while total income rose 16% to Rs 185.30 billion. Consolidated disbursements grew 4% year-on-year to Rs 607.41 billion.

Subsidiary performance:

Mahindra Rural Housing Finance Ltd (MRHFL) posted a loss of Rs 2.28 billion for FY25 despite a loan book of Rs 68.93 billion. Gross Stage 3 assets stood at 8.6%.
Mahindra Insurance Brokers Ltd (MIBL) reported Rs 12.40 billion in revenue (up 13%) but saw PAT decline 28% to Rs 888 million. Gross premium underwritten rose 4% to Rs 47.39 billion.
Mahindra Manulife Investment Management Pvt Ltd (MMIMPL) posted a revenue of Rs 877 million (up 38%) but reported a loss of Rs 101 million for the year.

Recognitions:

Mahindra Finance was recognised with several awards, including the AmbitionBox Awards 2024 (Top Rated Large Company), ETBFSI Exceller Awards (Best Learning & Development Program), and Business Today Summit 2025 (Best NBFC in Talent & Workforce). The company also launched a revamped mobile app and concluded its Emerging Leadership Development Program (ELDP).

(BSE)

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) posted a 33% year-on-year rise in standalone profit after tax (PAT) at Rs 23.45 billion for FY25, driven by healthy loan book growth and stable asset quality. The company’s Board also proposed a final dividend of Rs 6.50 per share (325%), higher than the Rs 6.30 declared in FY24. The company’s gross loan book surged 17% year-on-year to Rs 1,196.7 billion as of March 31, 2025, while annual disbursements rose 3% to Rs 579 billion. Net interest income for the year grew 15% to Rs 81.76 billion, and pre-provision operating profit (PPOP) stood at Rs 47.65 billion. Asset quality remained healthy with gross Stage 3 assets at 3.7% and GS2 + GS3 at 9.1%. The company reported a credit cost of 1.3% for the year, while maintaining a liquidity buffer of Rs 104 billion and a capital adequacy ratio of 18.3%. In Q4 FY25 alone, PAT declined 9% year-on-year to Rs 5.63 billion due to a 34% increase in credit costs. Disbursements for the quarter stood at Rs 155.3 billion, up 2% from the previous year. Segment highlights: Mahindra Finance’s SME lending segment recorded 48% year-on-year disbursement growth, with the loan book reaching Rs 61.48 billion. Its Stage 3 assets in the SME portfolio remained low at 1.1%. In the leasing business (Quiklyz), disbursements grew 31% year-on-year in FY25, with a focus on B2B and B2C models. The company also expanded its insurance offerings through 10 partner insurers and launched the first phase of its digital insurance portal. The mortgage business is in the investment phase with focus on team expansion and tech infrastructure. Consolidated performance: On a consolidated basis, Mahindra Finance reported a 16% growth in FY25 PAT at Rs 22.61 billion, while total income rose 16% to Rs 185.30 billion. Consolidated disbursements grew 4% year-on-year to Rs 607.41 billion. Subsidiary performance: Mahindra Rural Housing Finance Ltd (MRHFL) posted a loss of Rs 2.28 billion for FY25 despite a loan book of Rs 68.93 billion. Gross Stage 3 assets stood at 8.6%. Mahindra Insurance Brokers Ltd (MIBL) reported Rs 12.40 billion in revenue (up 13%) but saw PAT decline 28% to Rs 888 million. Gross premium underwritten rose 4% to Rs 47.39 billion. Mahindra Manulife Investment Management Pvt Ltd (MMIMPL) posted a revenue of Rs 877 million (up 38%) but reported a loss of Rs 101 million for the year. Recognitions: Mahindra Finance was recognised with several awards, including the AmbitionBox Awards 2024 (Top Rated Large Company), ETBFSI Exceller Awards (Best Learning & Development Program), and Business Today Summit 2025 (Best NBFC in Talent & Workforce). The company also launched a revamped mobile app and concluded its Emerging Leadership Development Program (ELDP). (BSE)

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