1. At a Glance – Bharat Ka Banker, Ab Thoda Civilised
Mahindra Finance is that desi NBFC which knows every mud road, tractor EMI, and rural customer mood swing better than Google Maps. As of Q3 FY26, the company is sitting on a market cap of ₹51,478 Cr, trading around ₹370, after delivering a 43% return in 6 months—not bad for a company people once wrote off as “rural risk”.
The gross loan book stands at ₹1,28,965 Cr, quarterly disbursements came in at ₹17,612 Cr, and PAT clocked ₹810 Cr. Asset quality? GS3 at 3.8%, which is a far cry from the horror stories of earlier cycles. Dividend yield is a comfy 1.76%, promoter holding is a rock-solid 52.5% with zero pledge, and ROE is hovering around 10.9%.
Valuation-wise, the stock trades at ~20.8x P/E and 2.08x P/B, neither cheap nor obscene—basically “mid-cycle NBFC vibes”. Question is simple: has Mahindra Finance finally grown up, or is it just behaving nicely because the economy is in a good mood?
2. Introduction – From Tractor Loans to Full-Stack Bharat Finance
Mahindra Finance has lived many lives. Once upon a time, it was synonymous with tractor financing—if you bought a Mahindra tractor, chances are Mahindra Finance already knew your village sarpanch.
Then came the bad years. Asset quality wobbles, tech lag, rising NPAs, and analysts suddenly discovering the word “credit cycle”. Between FY15–FY22, the company went through what can politely be called “character development”.
Post FY22, management hit the reset button: underwriting tightened, collections sharpened, tech got a much-needed upgrade, and risk teams stopped approving loans like wedding invitations. The result? From AUM CAGR of 9% (FY15–22) to ~27% CAGR in the rebuild phase, with GS3 steadily cooling off.
Now the ambition is
clear: remain king of rural & semi-urban lending while morphing into a diversified retail NBFC with mortgages, SME loans, insurance distribution, and fee income galore. Sounds great—but execution is where NBFC dreams usually go to die. So far, Mahindra Finance is still breathing.
3. Business Model – WTF Do They Even Do?
In simple terms, Mahindra Finance lends money to Bharat that banks still don’t fully trust.
Core segments:
- Tractor financing – their spiritual home and cash cow
- Auto & CV loans – balancing growth with margins
- Used vehicle & refinance – higher yields, higher brain usage
- SME lending – secured, LAP-heavy, slow but steady
- Mortgages – affordable housing + prime housing, currently ~₹7,000 Cr AUM
- Fee businesses – insurance, mutual funds, fixed deposits
The magic sauce is distribution. Pan-India rural reach, deep Mahindra ecosystem integration, and now 95%+ digital onboarding. Add AI-driven underwriting, collections bots yelling politely in 11 vernacular languages, and suddenly this feels less like a tractor lender and more like a fintech with mud on its shoes.
But remember—NBFCs don’t die because of lack of ambition. They die because of bad underwriting. Keep that in mind.
4. Financials Overview – Numbers Don’t Lie, They Just Smirk
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 5,450 | 4,797 | 5,026 | 13.6% | 8.4% |
| Financing Profit (₹ Cr) | 1,301 | 1,297 | 814 | 0.3% | 59.8% |
| PAT (₹ Cr) | 826 | 918 | 566 | -10.0% | 45.9% |
| EPS (₹) | 5.93 | 6.60 | 4.06 | -10.2% | 46.1% |
