Mahindra Finance Q2 FY27: standalone ROA at 2.2%, H1 RoNW rises to 14.2%
Q2FY27 standalone ROA 2.2% vs 1.6% a year ago; H1FY27 RoNW 14.2%, cost to income 36.7%, Gross Stage-3 at 3.4%.
By ScoutQuest · · 1 min read
- Q2FY27 standalone ROA
- 2.2% vs 1.6% a year ago
- H1FY27 RoNW
- 14.2% versus 10.3% in H1FY26
- Cost to income
- improved to 36.7% from 39.4%
- Period
- Q2 FY27
- Positioning
- Mahindra Finance describes itself as India's deepest rural and semi-urban mobility financier, with 1,300+ branches and 6,000+ dealers, expanding into enterprise and household finance.
📈 On a standalone basis, Q2FY27 net spread after tax (ROA) was 2.2% against 1.6% in Q2FY26, and H1FY27 ROA was 2.3%. H1FY27 RoNW was 14.2% versus 10.3% in H1FY26, while cost to income improved to 36.7% from 39.4%.
📌 Asset quality: Gross Stage-3 was 3.4% and Net Stage-3 1.5% in H1FY27, with Stage-3 provision coverage of 56.6%. Total business assets stood at Rs 1,46,512 crore as on 30 Sep 2026, with total provisions of Rs 4,150 crore including management overlays of Rs 635 Cr and Rs 217 Cr created in FY26.
🏭 The company says it is expanding from mobility finance into Bharat's broader financial needs, adding enterprise lending (LAP, supply chain, leasing) and household products (mortgages, protection, savings, investments). Management lists priorities of defending wheels leadership, growing mortgages, SME, leasing and fee income, and achieving stronger RoA and RoE.
📌 Funding stood at Rs 1,37,643 crore, 69.0% from banks and FIs, with 48% at floating rate; the company says it held cash and liquid investments of over INR 16,150 crores in addition to undrawn lines, and holds AAA ratings it says let it borrow at competitive rates.
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Mahindra & Mahindra Financial Services Ltd press release, Q2 FY27
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More numbers
- Net spread after tax (ROA), Q2FY272.2%
- Net spread after tax (ROA), H1FY272.3%
- Gross spread, Q2FY277.0%
- RoNW, H1 FY2714.2%
- Cost to income ratio, H1 FY2736.7%
- Gross Stage-3, H1 FY273.4%
- Net Stage-3, H1 FY271.5%
- Total business assets, 30 Sep 20261,46,512 (Rs. in crore)
- Total provisions, 30 Sep 20264,150 (Rs. in crore)
- Stage-3 provision coverage, 30 Sep 202656.6%
- Total borrowings, Sep'261,37,643 (INR crores)
- Cash/liquid investments, Sep 30 2026INR 16,150 crores
- Floating rate share of borrowing, Sep'2648%
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