M&M Financial Services has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

• Total Revenue: Rs 4,472.67 crore, up 14% year-on-year
• Net Profit: Rs 569.31 crore, a substantial increase of 54% compared to Q2 FY25
• Assets Under Management (AUM): Rs 1,27,246 crore, growing 13% year-on-year
• Disbursements: Rs 13,514 crore, a 3% increase from the previous year

Improved Asset Quality

The company's asset quality showed improvement, with Gross Stage 3 assets at 3.9% compared to 3.8% in the same quarter last year. The Net Stage 3 assets stood at 1.89%, indicating effective management of non-performing assets.

Capital Adequacy and Liquidity

M&M Financial Services maintained a strong capital position with a Capital Adequacy Ratio of 19.5%, well above regulatory requirements. The company's liquidity coverage ratio stood at a comfortable 346%, ensuring ample liquidity to meet short-term obligations.

Segment Performance

The tractor segment showed exceptional growth, while the commercial vehicle and construction equipment segment faced some challenges.

Management Commentary

Raul Rebello, Managing Director & CEO, stated, "Our Q2 performance reflects the strength of our diversified business model and our ability to capitalize on market opportunities. The significant growth in net profit and improvement in asset quality demonstrate the effectiveness of our strategic initiatives."

Future Outlook

With a strong balance sheet and improved asset quality, M&M Financial Services is well-positioned to capitalize on the growing demand for financial services in rural and semi-urban India. The company continues to focus on digitalization and expanding its product offerings to drive sustainable growth.

Investors and analysts will be watching closely to see if M&M Financial Services can maintain this momentum in the coming quarters, especially given the evolving economic landscape and competitive pressures in the non-banking financial sector.

M&M Financial Services has announced a significant change in its senior management team. Ms. Alka Srivastava, currently serving as the Business Head for CVCE (Commercial Vehicle, Construction Equipment), will transition to the role of Head-Underwriting effective October 15, 2025.

New Appointment Details

Professional Background

Ms. Srivastava brings a wealth of experience to her new role:

• Education: Master of Finance and Control from Lucknow University
• Total Experience: 24 years in Banking and Financial Services
• Previous Roles:
  • HDFC Bank (10 years)
  • Axis Bank (7 years)
  • CitiFinancial (3 years)
• Expertise: Underwriting and risk management across retail loans, including car loans, commercial vehicle loans, two-wheelers, and personal loans

Career at M&M Financial Services

This strategic move highlights M&M Financial Services' commitment to strengthening its underwriting capabilities. Ms. Srivastava's extensive experience in risk management and underwriting across various loan products positions her well to lead the company's underwriting division.

The appointment, as disclosed in the company's regulatory filing, is part of M&M Financial Services' ongoing efforts to enhance its senior management team. This change comes at a time when the financial services sector is navigating through dynamic market conditions, emphasizing the importance of robust underwriting practices.

As Ms. Srivastava transitions from her current role as Business Head for CVCE to Head-Underwriting, her diverse experience in both business operations and risk management is expected to influence M&M Financial Services' underwriting strategies and overall risk posture in the coming years.