Mahindra & Mahindra Financial Services reported a 22% year-on-year increase in disbursements for the second quarter of fiscal year 2027, reaching approximately ₹16,490 crore. This robust lending activity contributed to a significant expansion in the company's overall business assets.

The NBFC's business assets grew by approximately 15% over September 2025 levels, standing at around ₹1,46,300 crore. The first half of FY27 saw total disbursements of approximately ₹32,050 crore, reflecting a similar ~22% YoY growth excluding finance leases.

Asset quality and collection metrics

The company maintained strong collection efficiency, estimated at 97% for Q2FY27, compared to 96% in the corresponding quarter of the previous fiscal year. Asset quality indicators showed improvement, with Stage-3 assets estimated in the range of 3.35%-3.45% as at September 30, 2026. This is a decline from 3.45% as at June 30, 2026, and a notable reduction from 3.94% as at September 30, 2025.

Stage-2 assets also witnessed a downward trend, estimated between 4.7%-4.8% as at September 30, 2026, down from 4.9% in the preceding quarter and 5.8% a year earlier.

Liquidity position

The company reported a comfortable liquidity position on its balance sheet, maintaining a liquidity chest of over ₹16,200 crore. This substantial buffer supports its ongoing lending operations and debt obligations.

What the numbers show

The data reveals a dual strength in growth and stability. While disbursements expanded by 22% YoY, indicating aggressive market penetration, the simultaneous reduction in both Stage-2 and Stage-3 asset ratios suggests that this growth was not achieved at the cost of credit quality. The narrowing gap between Stage-2 and Stage-3 assets, alongside improved collection efficiency, points to effective risk management practices during a period of high volume growth.

M&M Financial Services has allotted ₹1,250 crore in Secured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) through a private placement. The allotment was approved by the Debenture Allotment Committee on September 29, 2026, following successful bidding on the BSE Bond-EBP Platform.

The total subscription comprised the base issue size of ₹1,000 crore plus a green shoe option uptake of ₹250 crore. The debentures carry a face value of ₹1,00,000 each and will be listed on the Wholesale Debt Market Segment of BSE Limited. The instrument offers a fixed coupon rate of 7.95% per annum.

Issue structure and terms

The proposed securities are designed as a short-to-medium term debt instrument with a specific maturity profile. The total number of securities allotted is 1,25,000 non-convertible debentures. The allotment date was September 29, 2026, with a final maturity date of September 28, 2029.

Security and redemption mechanism

The debentures are secured by an exclusive charge in favor of the Debenture Trustee on present and/or future receivables under loan contracts, hire purchase agreements, leases, owned assets, and book debts. This security cover extends to 1.1 times the outstanding debenture amount, provided the assets are free from any encumbrances.

In the event of a default in payment of coupons or principal redemption, the company is liable to pay additional interest at 2% per annum over the coupon rate for the defaulting period. The principal amount of ₹1,00,000 per debenture will be redeemed on the maturity date.

Coupon payment schedule

Interest payments are structured annually, with the final coupon period adjusted for the leap year cycle and remaining days until maturity.

What the numbers show

The final allotment reveals moderate demand relative to the maximum authorized limit. While the company had approval for up to ₹2,000 crore, the actual subscription settled at ₹1,250 crore, representing 62.5% utilization of the potential issuance capacity. The green shoe option was exercised partially, with only ₹250 crore of the available ₹1,000 crore additional tranche taken up. This suggests that while institutional interest was sufficient to fully absorb the base issue, incremental demand for higher volumes at the 7.95% coupon rate was limited.