Mahindra Finance, a leading non-banking financial company (NBFC) from the Mahindra Group, saw a 2% drop in its shares following its Q4 results for FY2025. The company reported a 9% decline in standalone profit, amounting to Rs 563 crore, compared to Rs 619 crore in the same period last year.
Despite a 17% growth in its loan book, Mahindra Finance’s net interest income (NII) grew by a modest 9%, totaling Rs 2,156 crore. However, the company’s net interest margin (NIM) narrowed to 6.5%, the lowest in 15 quarters, from 7.1% in the previous year. This decline was largely driven by a slower-than-expected loan growth rate of 17.20% YoY, marking the lowest in 11 quarters.
The company’s credit provisions surged 34% to Rs 457 crore, up from Rs 341 crore a year ago, weighing down profitability. The asset quality also showed some pressure, with the GS2+GS3 ratio standing at 9.1% and stage 3 assets at 3.7%.
However, Mahindra Finance remains well-capitalized with a comfortable capital adequacy ratio of 18.3% and a strong liquidity buffer of Rs 10,400 crore.
Mahindra Finance shares opened at ₹273.00, reaching a high of ₹278.05 and a low of ₹269.90 during the trading session. The stock has shown notable volatility, with a 52-week high of ₹343.00 and a 52-week low of ₹237.95.
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