Earnings Call Transcript - Q1 FY27

27th July 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 first quarter ended 30th June 2026, held on Tuesday, 21st July 2026 Further to our letters dated 30th June 2026 and 14th July 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 first quarter ended 30th June 2026, held on Tuesday, 21st July 2026, which concluded at 7:52 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 Q1 FY27 Earnings Conference Call” July 21, 2026 Management: Mr. Raul Rebello: Managing Director & CEO Mr. Pradeep Agrawal: Chief Financial Officer Moderator: Mr. Pradeep Agrawal – 360 ONE Capital Markets Private Limited Page 1 of 22 Mahindra & Mahindra Financial Services Limited July 21, 2026 Moderator: Ladies and gentlemen, good day and welcome to the Mahindra Finance Q1 FY27 Earnings Conference Call hosted by 360 ONE Capital Markets Private Limited. 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 the call, please signal an operator by pressing star then zero on your touch-tone phone. Also before we begin, we'd 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 Mr. Pradeep Agrawal from 360 ONE Capital Markets. Thank you and over to you, sir. Pradeep Agrawal: Thank you, Rayo. Good evening, everyone. Welcome to the Quarter 1 FY27 earnings call of Mahindra Finance. To discuss the results, we have with us Mr. Raul Rebello, MD and CEO and Mr. Pradeep Agrawal, Chief Financial Officer. I would now like to hand over the call to Mr. Rebello for his opening remarks, post which we will open the floor for Q&A. Over to you, sir. Raul Rebello: Thank you, Pradeep, and good evening, everyone. Thank you for joining us for our Q1 FY27 earnings call. As always, I would request you to keep the result updates which we posted on the exchanges earlier in the afternoon/evening handy. I will be referring to pages in the documents as I walk you through the key updates for the quarter. Let's move to Page number 4 first. I have outlined what we think are the key reflections for quarter 1. We have been for a while now talking about what in our definition is pivoting back to growth for the core business as well as the new engines for growth. And in reflection, I would say we are quite pleased to see our core businesses, our wheels business, whether it's the PV business, tractor, parts of the CV segments, 3-wheeler business come back in terms of growth, which is clocked at 20%. Our new engines for growth, which was SME business, PL and what's not on this page is the housing business has also had a reasonably good quarter, which gives us confidence on the investments that we have made in the past starting to bear fruit. On the asset quality side, I would be a little more generous on our comments here. I think it's, we have been -- we are reminded that these numbers in Q1 and all of you would be aware that Q1 usually sees some element of seasonality. We have been able to handle that and overcome an extreme divergence from Q4 over Q1. And our GS3 and GS3+GS2 numbers are at an 8-year low now at GS3 at 3.45% and GS2+GS3 at 8.3%, which has had a direct impact on my last comment on profitability. If you look at the credit cost at 1.5% for the quarter, has also lent itself to us making sure that the ROA numbers are extremely formidable for the quarter at 2.4%. All in all, the standalone numbers on profitability have delivered a 70% Y-o-Y growth. Quickly moving to the continuation on reflections for the quarter, Page number 5. Our NIM numbers saw some stress the fiscal end of fiscal '24 and '25 and we have been actively looking at the product composition, actively looking at pricing as well as fee-based income and other initiatives to augment our NIM. I must also mention that we have been benefited by a CoF, also leading to last year's rights issue adding to the mix to see that NIM number move up to a zone which we think is the right place it should be. Anything above 7%, 7.1% should be the medium- Page 2 of 22 Mahindra & Mahindra Financial Services Limited July 21, 2026 term number that we're chasing. In terms of I won't go back to GS2+GS3, but if you look at what the page illustrates versus last year, these numbers are coming at a much lower level. The collection teams have for the quarter been very diligent in making sure that early bucket collections are rendered at a very positive clip. At the same time, we have seen even reversals play out well from a collection standpoint. All in all, the AUM growth was at a 13%. Now moving to Page number 6. I'd like to spend some time on this page. In our past interactions, many of you have asked us about how do we see a more resilient Mahindra Finance from a long- term, from a participation of various underlying asset categories. And we mentioned the cornerstone for that would be a diversified -- a more diversified asset base. If you go back 3 fiscals, the pie chart that you see, the 83%, 17% was very different. It would be mostly clustered with the wheels AUM. We are seeing a sequential good diversification now kick in from the lending franchise having a non-wheels composition. We see this increase over a period of time, not by reducing the growth in the wheels business, which I wanted to illustrate, at the 20% growth. But the real augmenting of growth will happen from the non-wheels business, which is now growing at a reasonable clip. We demonstrated a 79% growth across the non-wheels business, which is largely the SME business, the mortgage business and the PL business that we do on our existing to Mahindra franchise. So that's the highlight that the diversification is starting to play out, secular growth across vehicle categories as well as augmented accelerated growth in the new engines of growth. On the right side of the panel, what you would see is what we are very encouraged to see our subsidiaries. We don't actively in the call, talk about our subsidiaries, but these are starting to meaningfully now throw up quarterly profit numbers. The housing finance company, very strong PAT growth, INR 30 crores posted for the quarter. Our insurance broking business, which does open architecture, insurance, motor, life, health, extremely formidable growth, 83% Y-o-Y PAT growth and a relatively newer business, 5.5 to 6 years into the offering, the AMC business also starting to now show some good signs of growth as well as profitability. I'm picking up a bit of pace right now on Page number 8, just deep diving into the underlying asset categories of growth. I've mentioned, we've seen pretty secular growth across asset categories. But what I would call out here is our jaw of market leadership in the tractor business is starting to even widen. We have made very, very significant investments in distribution, in partnerships at various dealer counters, and that's starting to bear fruit in terms of a very high share [Showing first 8,000 characters — download PDF for full document]