Mahindra & Mahindra Financial Services board approves raising funds up to ₹2,000 crore via NCDs; shares fall 16% YTD

According to a regulatory filing, the company’s debenture issuance committee, as authorized by the board of directors, at its meeting held on Thursday, September 24, approved the offer and issuance of the NCDs on a private placement basis, within the overall borrowing limits approved by the shareholders and authorisation granted by the board.

The non-banking financial company (NBFC) will issue up to two lakh NCDs with a face value of ₹1 lakh each. Furthermore, it is proposed to be listed in the wholesale debt segment of BSE Ltd.

The ₹2,000 crore issue will include a base issue of ₹1,000 crore along with a green shoe option of additional ₹1,000 crore.

The NCDs, which will be allotted on Tuesday, September 29, 2026, have a tenure of two years and 364 days (or 1,095 days) from the date of allotment.

The issue, with a fixed coupon rate of 7.95% per annum, will mature on September 28, 2029.

The company added that the pay-in amount will be based on the bid prices on the electronic bidding platform.

M&M Finance Q1 results

The firm reported a 70% year-on-year (YoY) surge in its standalone net profit to ₹898.65 crore in the April-June quarter of the 2026-27 financial year (Q1 FY27), compared with ₹529.50 crore in the same period a year ago.

The NBFC firm’s net profits for the first quarter witnessed healthy growth with key support from the increase in revenues from interest collected, fees and commissions earned in the period under review.

Its interest income advanced 11% YoY to ₹4,620.87 crore for the reporting quarter, as against ₹4,164.59 crore in the first quarter of the 2025-26 fiscal year (Q1 FY26).

M&M Finance stock performance

Shares of Mahindra & Mahindra Financial Services closed 2.50% lower at ₹339.90 apiece on the National Stock Exchange (NSE) on Thursday, September 24. However, the development was announced after the markets closed.

The scrip has declined 2% in the past week and 10% over the month. On a year-to-date (YTD) basis, it has fallen 16%.

While the stock hit a 52-week high of ₹415 per equity share on August 10, 2026, it touched a year’s low of ₹269.50 per unit on October 3, 2025.

Mahindra & Mahindra Financial Services has a total market capitalisation of ₹47,245.12 crore as of September 22, 2026, according to data on the NSE.