Mahindra & Mahindra Financial Services532720Earnings call transcript

Q2 FY27 earnings call: disbursements up 22%, PAT up 55% to INR 882 crores

Transcript of the Q2 and half-year FY27 earnings conference call, held on 21st October 2026.

By ScoutQuest · Tue 27 Oct 2026, 4:36 PM IST · 2 min read

Disbursement Growth: Disbursements grew 22%
Profit After Tax: Profit after tax rose 55% to INR 882 crores
Lending AUM: INR 1,56,000 crores

What this update is

The company has put on record the transcript of its earnings conference call for the second quarter and half year ended 30th September 2026, held on 21st October 2026. The transcript carries the opening remarks of the Managing Director & CEO and the management team's question-and-answer session with analysts.

Growth

Disbursements grew 22%, with management saying the increase came from the core vehicle (wheels) business as well as newer lines such as SME and mortgage.
Lending assets (AUM) stood at INR 1,56,000 crores.
Management described the growth as broad-based across vehicle categories, and said it would like to grow in the 16% to 18% range.
The non-wheels portion of the book was described as growing faster than the core vehicle business, which management presented as evidence of its diversification effort.

Asset quality and credit cost

GS2+GS3 (loans that are overdue but not yet written off as bad) was put at 8.1%, which management called an all-time low for the company.
Q2 credit cost was 1.6%, and management said this sits inside the range it has previously indicated.
Management said the usual jump in stress and credit cost between the first and second quarters of a year has come down, crediting underwriting, risk guardrails and collection discipline.

Profit and returns

Profit after tax rose 55% to INR 882 crores in the quarter.
Management said the sequential dip in return on assets was mainly on account of income, and it attributed this to seasonal factors rather than structural ones.
Management said it aspires to improve return on assets over time.

Capital and liquidity

Management described the company as well capitalised for its next phase of growth, helped by a largely secured loan book.
It said liquidity buffers were deliberately built up and are at high levels, noting that keeping this money idle drags on returns but was a conscious, conservative choice.

Technology and operations

Management said its technology spending is aimed at three areas: revenue, operations and collections.
It said these tools are now adding measurable value to disbursements.
A majority of back-office work is now covered by enabled operational workflows, and call centres are supported by regional language bots as well as automated calling, which management said reduces errors and improves efficiency.

What to keep in mind

These are management's own remarks on an analyst call, and the transcript itself notes that some statements are forward-looking and subject to risks and uncertainties. The figures discussed are the company's own characterisation of its performance.

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