M & M Fin. Serv. Q1 FY27 Results (NSE: M&MFIN)
Signal: Earnings grew
The read
Standalone PAT surged 70% YoY to ₹899 Cr, driven by NIM expansion (+55bps to 7.3%) and lower credit cost (-44bps to 1.5%); disbursements hit an all-time Q1 high of ₹15,564 Cr (+22% YoY). Asset quality improved (Stage 3 down 30bps, Stage 2 down 100bps YoY). Consolidated PAT ₹927 Cr (+75% YoY) outperformed standalone on subsidiary contribution, continuing the strong earnings trajectory seen in prior quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,974 Cr | 12% | -9.0% |
| Net profit | ₹899 Cr | 70% | |
| EPS | ₹6.66 | 75.3% |
P&L walk
Consolidated total income ₹5,725 Cr (+14% YoY), PAT ₹927 Cr (+75% YoY) — outperforms standalone on subsidiary/MRHFL contribution.
Key positives
- Standalone PAT ₹899 Cr, +70% YoY — a significant acceleration vs recent trends (Q4FY26 PAT was +105% YoY on a low base).
- NIM expanded 55bps to 7.3%, best in the recent series, driven by better asset yield and mix.
- Credit cost improved 44bps to 1.5% — lowest in many quarters, signalling improving portfolio quality.
- Disbursements ₹15,564 Cr, +22% YoY, an all-time Q1 record; tractor financing up 45% YoY, PVs up 24%.
- ROA doubled to 2.4% (from 1.6% last year), reflecting strong operating leverage and lower provisioning.
- Capital adequacy healthy at 18.5% (Tier-1 16.5%), providing headroom for growth.
Key concerns
- Total income growth (+12% YoY) lagged disbursement growth (+22% YoY), implying yield compression on incremental book.
- Collection efficiency flat at 95% YoY — a potential stress indicator despite improving Stage 3 numbers.
- Consolidated PAT ₹927 Cr vs standalone ₹899 Cr — difference of ₹28 Cr indicates subsidiaries (e.g., MRHFL) contributed modestly relative to scale.
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