Earnings Call Transcript - Q2 FY2027

27th October 2026 BSE Limited (Scrip Code: 532720) National Stock Exchange of India Ltd. (Symbol: M&MFIN) Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, "G" Block, Dalal Street, Fort, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 Dear Sir/ Madam, Sub: Transcript of Earnings Conference Call for the second quarter and half year ended 30th September 2026, held on Wednesday, 21st October 2026. Further to our letters dated 28th September 2026 and 13th October 2026 and in compliance with Regulation 46(2)(oa) and Regulation 30 read with Schedule III, Part A, Para A (15)(b) and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, please find enclosed herewith the transcript of Earnings Conference Call for the second quarter and half year ended 30th September 2026, held on Wednesday, 21st October 2026, which concluded at 7:43 p.m. (IST). This intimation along with the transcript is also being uploaded on the website of the Company at: https://www.mahindrafinance.com/investor-relations/financial-information#transcript-of-earnings-call. Kindly take the same on record. Thanking you, For Mahindra & Mahindra Financial Services Limited Brijbala Batwal Company Secretary FCS: 5220 Enclosure: As above “Mahindra & Mahindra Financial Services Limited Q2 FY27 Earnings Conference Call” October 21, 2026 Management: Mr. Raul Rebello: Managing Director & CEO Mr. Pradeep Agrawal: Chief Financial Officer Ms. Urmi Patel Head – Investor Relations Page 1 of 22 Mahindra & Mahindra Financial Services Limited October 21, 2026 Moderator: Ladies and gentlemen, good day and welcome to the Mahindra and Mahindra Financial Services Earnings Conference Call. As a reminder, all participant lines will be in the listen- only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I would like to inform participants that this call is for analysts only. Any participant joining from the media may disconnect the call now. I now hand the conference over to Ms. Urmi Patel, Head, Investor Relations from Mahindra Finance. Urmi Patel: Thank you, Dorwin. Good evening, everyone. We welcome you all to the Quarter 2 Earnings Conference Call of Mahindra & Mahindra Financial Services Limited. Joining us on call today from management are Mr. Raul Rebello, Managing Director and CEO; Mr. Pradeep Agrawal, Chief Financial Officer, along with other members of our management team. We'll begin today's session with opening remarks from Mr. Rebello, following which we will open the floor for Q&A. The audio recording of this call will be made available on our website shortly after the call ends. Before we begin, I would like to remind you that certain statements made during the course of this call may be forward-looking statements. Such statements are based on expectations and involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. With that, I would now like to hand over the call to our Managing Director and CEO, Mr. Raul Rebello, for his opening remarks. Raul, over to you. Raul Rebello: Thanks, Urmi. Good evening, everyone, and for those of you joining from other time zones, good morning, good afternoon. Very happy to share with you the quarter results, and I would, as usual, request you to keep the earnings call document, quarterly results document handy. I'll be referring to certain pages on the document, which will be useful for you to refer to as I lay out my commentary. To start with, let me say that the entire management team is very encouraged with the way in which Quarter 2 results have panned out. I would say that Quarter 2 results are a reflection of the many quarters prior to that, the operating diligence that the team has been focused on and has resulted in what we call, a very steady results from a growth, margin, as well as risk standpoint. If I were to just reflect on the growth standpoint, and now please refer to Page Number 5, you would see that our disbursement growth has grown in a steady clip of 22%. And this 22% growth has come in from clearly our core business which is the wheels business as well as growth coming from the diversification agenda that we called out, our SME and mortgage business. Page 2 of 22 Mahindra & Mahindra Financial Services Limited October 21, 2026 Looking at asset quality, 8.1% GS2+GS3, this is pretty much all-time lows in terms of our GS2+GS3 numbers. And the credit cost has been within the zip codes that we've called out between 1.3 to 1.7. Our Q2 credit cost at 1.6%. With the strong growth in disbursements, AUM growth of 15% and asset quality being under check, as well as our other operating metrics in terms of opex, etc., being very stable, we have been able to deliver a sound PAT growth of 55% at INR 882 crores. Moving to Page Number 6, I did talk about diversification in the franchise. And we are very proud of the core wheels business that we have built over many decades, but as an organization we were very keen to unlock new facets of growth. And I'm happy to report that the overall lending AUM, which is at INR 1,56,000 crores now you have a 20% coming in from the non- wheels and 80% from the wheels. Of course, the 20% non-wheels includes some amount of the quarterly disbursements or the book that we build through the trade advance. So, that's also added up to the non-wheels business. Overall, but in our growth plans, I did mention we would love to grow between the 16% to 18% zip codes. The core business grew 21% and the non- wheels business at 52% is a healthy sign in that direction. Along with the wheels business as well as the non-wheels business, the lending business, we have subsidiaries which have been for many years now, I would say, not operating at their most potential manner. And we have been working very closely with the subsidiaries to turn them around. I have been talking about the last two quarters how the subs have been very, very steadily adding to the overall consol numbers. Happy to note that this quarter also is a step in that direction, MRHFL posted a healthy INR 35 crores PAT. Apologies for that glitch. I'll just wind back a few, maybe a few seconds. I was on the page prior to this page. I was on the page of our holistic growth coming from various asset categories. Before that, I had just landed the point for those of you who might have missed, the diversification agenda is progressing well. We have a very strong growth in our core business at 21% and the other lending business at 52%, along with the subsidiaries having very steady growth. I request you now move your panel to Page 8. On Page 8, you would see that growth is a very holistic, secular growth coming from all asset categories. We have, actually the wheels business firing on all cylinders, passenger vehicle at 28%, used business at 15%, CV/CE at 16%, tractor at 13%, three-wheeler at 32%, SME at 13%, and our other businesses at 71%. So, growth at 22% is coming from a very holistic, secular contribution from all categories. Moving to asset quality on Page 9. Fair to say that we did have baked in a lot of seasonality in our earlier quarterly numbers. You would have seen between quarters spikes in terms of our GS3, GS2 numbers, as well as credit cost. I think fair to say that with our underwriting, risk guardrails, as well as the collection discipline, we've turned the corner in terms of the volatility in inter-quarter GS2, GS3 numbers. For your reference, on the top hand right of the page, you would see that even up till last year, we had a 9 bps increase in the GS3 numbers between Q1 and Q2. We, in fact, saw sequential fall in GS3 by 3 bps, as well as GS2 which w [Showing first 8,000 characters — download PDF for full document]