M&M Financial Services Receives AAA Credit Rating Reaffirmation from Top Agencies

Mahindra & Mahindra Financial Services has received strong credit rating reaffirmations from two leading rating agencies on December 11, 2025, reinforcing its robust financial position in the market. The company informed BSE and NSE about these developments under Regulation 30 of SEBI Listing Regulations.

India Ratings & Research Assessment

India Ratings & Research Private Limited reaffirmed its top-tier ratings for M&M Financial's debt instruments. The agency assigned 'IND AAA' rating with Stable outlook to long-term instruments and 'IND A1+' rating to short-term commercial paper:

Instrument:	Rated Amount	Rating
Retail Non-convertible Debentures:	INR 80.00 billion	IND AAA/Stable
Private Subordinated Debt:	INR 54.50 billion	IND AAA/Stable
Fixed Deposits:	INR 120.00 billion	IND AAA/Stable
Commercial Paper:	INR 150.00 billion	IND A1+

The 'IND AAA' rating indicates the highest degree of safety regarding timely servicing of financial obligations, while 'IND A1+' represents the strongest degree of safety for short-term instruments.

CRISIL Ratings Reaffirmation

CRISIL Ratings Limited maintained its 'CRISIL AAA/Stable' rating for M&M Financial's long-term debt instruments, demonstrating continued confidence in the company's creditworthiness:

Instrument:	Rated Amount (Rs. in Crore)	Rating
Non-Convertible Debentures:	32,875.00	CRISIL AAA/Stable
Subordinated Debt:	5,113.50	CRISIL AAA/Stable
Fixed Deposit:	18,000.00	CRISIL AAA/Stable
Commercial Paper:	17,000.00	CRISIL A1+

The 'CRISIL AAA' rating denotes the highest degree of safety regarding timely fulfillment of financial obligations, indicating that these instruments carry the lowest credit risk.

Market Implications and Regulatory Compliance

These rating reaffirmations carry significant implications for M&M Financial Services. The AAA ratings reflect the company's strong financial health and ability to meet its financial commitments, potentially leading to lower borrowing costs as higher ratings typically translate to more favorable interest rates.

The company has ensured full regulatory compliance by informing both BSE (Scrip Code: 532720) and NSE (Symbol: MMFIN) about these rating reaffirmations. The detailed credit rating information has also been uploaded on the company's official website under the investor relations section for stakeholder transparency.

For investors, these reaffirmations enhance confidence, particularly for those considering the company's fixed deposits or debt instruments, while underscoring M&M Financial's stable outlook in the competitive financial services sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.96%	+3.35%	+8.92%	+32.04%	+34.22%	+104.86%

M&M Financial Services has reported a strong performance for the second quarter of fiscal year 2026, marked by improved margins and stable asset quality.

Key Financial Highlights

Net Interest Margin (NIM) expanded to 7.00% from 6.50% year-on-year
Profit After Tax (PAT) grew by 25% to Rs. 1,100.00 crores for the half-year period
Asset quality remained stable with Gross Stage 2 (GS2) plus Gross Stage 3 (GS3) at 9.70%
Tractor business showed robust growth of 41%

Margin Improvement and Asset Quality

M&M Financial Services witnessed a significant improvement in its Net Interest Margin, which expanded from 6.50% to 7.00% year-on-year. This expansion was primarily driven by an improvement in the cost of funds and growth in fee-based income. The company's focus on maintaining asset quality was evident as the combined Gross Stage 2 and Gross Stage 3 assets remained stable at 9.70%, which is lower than the previous year's Q2 levels.

Strong Growth in Key Segments

The tractor business emerged as a standout performer, registering a robust growth of 41%. This strong performance can be attributed to positive conditions in the rural economy. The company's trade advances also saw a substantial increase, rising to Rs. 6,800.00 crores during the festive season, compared to around Rs. 4,000.00 crores in the previous quarter.

Credit Cost Guidance

Despite the challenging environment typically associated with Q2, M&M Financial Services has maintained its credit cost guidance of 1.70% for the full year. This indicates the company's confidence in its risk management strategies and the overall quality of its loan book.

Management Commentary

Raul Rebello, Managing Director & CEO of M&M Financial Services, expressed optimism about the company's performance in the second half of the fiscal year. He cited recent GST rate cuts and festive demand as positive drivers, particularly for the passenger vehicle and tractor segments.

Outlook

The management remains positive about the company's prospects for the second half of FY'26. They anticipate continued momentum in key segments, particularly benefiting from the recent GST rate reductions and strong festive season demand. The company is well-positioned to capitalize on the expected growth in the rural economy and the automotive sector.

Conclusion

M&M Financial Services' Q2 FY'26 results demonstrate the company's resilience and strategic focus on improving margins and maintaining asset quality. With a strong performance in key segments like tractors and a positive outlook for the second half, the company appears well-positioned for sustained growth in the coming quarters.