M & M Fin. Serv. Q2 FY27 Results (NSE: M&MFIN)
Signal: Earnings grew
The read
The trajectory improved on credit costs rather than top-line acceleration: total income grew 15.3% YoY to ₹5,174.79 crore, but PAT growth of 54.9% to ₹881.52 crore was driven mainly by impairment declining 16.2% to ₹629.51 crore; the key counter-signal is operating cash outflow of ₹10,858.11 crore in H1FY27 versus ₹6,556.20 crore a year ago.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,174.79 Cr | +15.3% | +4.0% |
| Net profit | ₹881.52 Cr | +54.9% | |
| EPS | ₹6.34 | +54.6% | |
| EBIT margin | 0% |
P&L walk
Standalone revenue rose 15.3% YoY to ₹5,174.79 crore, while PAT increased 54.9% to ₹881.52 crore primarily because impairment expense fell 16.2% YoY to ₹629.51 crore; finance costs rose 13.3% to ₹2,341.04 crore and operating cash flow remained negative.
Key positives
- Total income rose 15.3% YoY to ₹5,174.79 crore, with interest income up 13.3% YoY to ₹4,732.46 crore.
- PAT increased 54.9% YoY to ₹881.52 crore as impairment expense fell 16.2% YoY to ₹629.51 crore.
- Loan assets increased to ₹1,42,361.56 crore from ₹1,30,160.14 crore at March 31, 2026, indicating continued balance-sheet expansion.
- Basic EPS rose 54.6% YoY to ₹6.34, closely tracking PAT growth from ₹569.31 crore to ₹881.52 crore.
Key concerns
- H1FY27 operating cash flow was negative at ₹10,858.11 crore, widening from negative ₹6,556.20 crore in H1FY26 despite reported H1 PAT of ₹1,780.17 crore.
- Finance costs increased 13.3% YoY to ₹2,341.04 crore and 6.0% QoQ, placing pressure on earnings as borrowings expanded.
- Q2FY27 PAT declined 1.9% QoQ from ₹898.65 crore even though total income rose 4.0% QoQ, reflecting higher sequential impairment and finance costs.
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