M&M Financial Services has reported significant business expansion with its total assets reaching ₹1,29,000 crore in December 2024, marking a robust 12% growth. The financial services company has demonstrated its ability to scale operations while maintaining operational efficiency across its lending portfolio.

Business Asset Performance

The company's asset base expansion reflects strong business momentum during the reporting period. The 12% growth in business assets indicates healthy demand for the company's financial services offerings and successful portfolio expansion strategies.

Collection Efficiency Remains Stable

Despite the significant asset growth, M&M Financial Services has maintained its collection efficiency at 95%, showing no change from the previous year. This stability in collection performance demonstrates the company's effective risk management practices and consistent operational standards.

The flat year-over-year collection efficiency indicates that the company has successfully managed its expanded portfolio without compromising on asset quality. This performance metric is particularly significant given the substantial growth in business assets, as it shows the company's ability to maintain collection standards while scaling operations.

Financial Services Sector Performance

The combination of strong asset growth and stable collection efficiency positions M&M Financial Services favorably within the financial services sector. The 12% asset expansion coupled with maintained collection standards reflects balanced growth strategy focused on both business expansion and operational excellence.

Mahindra & Mahindra Financial Services has announced its Q3FY26 business update, reporting steady operational performance with disbursements reaching ₹17,600 crore, marking a 7% year-on-year increase. The NBFC's latest disclosure demonstrates consistent growth momentum while maintaining strong asset quality metrics, with notable improvements in early delinquencies signaling rural market recovery.

Strong Disbursement and Asset Growth Performance

The company's Q3FY26 performance reflects robust business expansion across key operational metrics, with significant growth in both disbursements and overall business assets.

The disbursement figures exclude finance lease transactions, providing clarity on the company's core lending operations. Nine-month disbursements reached ₹43,900 crore, up 4% year-on-year, indicating sustained business momentum throughout the fiscal year.

Asset Quality Shows Improvement with Stable NPAs

The company maintained stable asset quality metrics with Stage-3 gross NPAs remaining in the 3.9% to 4.0% range, while early delinquencies showed significant improvement, reflecting rural market recovery trends.

Stage-3 assets remained stable in the 3.9% to 4.0% range as of December 31, 2025. Early delinquencies showed notable improvement, with Stage-2 assets declining to 5.4%-5.5% from 5.8% in the September quarter and significantly better than 6.3% recorded a year earlier, indicating strengthening rural recovery.

Collection Efficiency and Liquidity Position

The company maintained its collection efficiency at 95% for Q3FY26, unchanged from the year-ago period, demonstrating effective recovery mechanisms and stable customer payment behavior. Mahindra & Mahindra Financial Services maintains a comfortable liquidity position with a buffer exceeding ₹8,850 crore as of December 31, 2025.

This substantial liquidity provides adequate resources to support business operations and growth initiatives while managing potential market uncertainties.

Market Performance and Outlook

Shares of the NBFC ended 0.61% lower at ₹401.70 ahead of the business update announcement. The company will release detailed financial results for the December quarter at a later date. The Q3FY26 metrics indicate the company's ability to maintain operational stability while achieving steady growth, with improving asset quality metrics reflecting a balanced approach to business expansion and effective risk management in the recovering rural market environment.