Mahindra Finance shares slip over 4% as profit falls 9% YoY to ₹563 crore

Shares of Mahindra & Financial Services slumped 4.31% to an intra-day low of ₹265.20 apiece on the National Stock Exchange (NSE) on Wednesday, April 23. This follows a 9% year-on-year (YoY) decrease in the non-banker lender's standalone profit at ₹563 crore in the fourth quarter of the 2024-25 financial year (Q4FY25), compared to ₹619 crore in the year-ago period.

Shares of the company closed in the red at ₹269.20 apiece, down 0.17% on April 23.

For FY25, the company's post-tax profit jumped 33% YoY to ₹2,345 crore as against ₹1,760 crore in the March quarter of FY24 (Q4FY24).

Its core net interest income grew 9% YoY to ₹2,156 crore in the reporting quarter, on a 17% growth in the loan book, but was restricted by a narrowing in the interest margin to 6.5% from the 7.1% in the corresponding period last year.

The overall disbursements were up by 2% YoY at₹15,530 crore during Q4FY25.

“For the full financial year, disbursements stood at approximately ₹57,900 crore, a 3% increase over the previous year. While the overall disbursement growth was relatively subdued, SME disbursements grew 48% compared to FY24. The company’s gross assets under management (AUM) grew by 17% YoY, reaching ₹1,19,673 crore,” the company said.

Provisions or credit costs surged 34% to ₹457 crore as against ₹341 crore in the fourth quarter of the 2023-24 financial year (Q4FY24), proving to be a dampener on the bottom line.

On the asset quality front, the GS2+GS3 ratio was at 9.1%, and stage 3 was at 3.7%.

The overall capital adequacy ratio was at a comfortable 18.3%, and the liquidity buffer was ₹10,400 crore.

Mahindra Finance share performance

Shares of Mahindra Finance lost 2.31% over the past three days and 4.59% since the beginning of April. The stock gained 1.91% on a year-to-date basis.

The scrip hit a 52-week low of ₹237.95 on April 7, 2025, and a high of ₹343 on September 27, 2024.

Mahindra Finance has a total market capitalisation of ₹33,353.13 crore as of April 22, 2025, on the NSE.