Mahindra & Mahindra Financial Services shares extend rally for second consecutive day; what analysts say on Q1 show

Mahindra & Mahindra Financial Services (M&M Finance) shares extended their rally for a second trading day on Wednesday, July 22, rising as much as 10% as investors focused on the non-banking financial company’s (NBFC) healthy Q1 earnings performance.

NSE data showed that Mahindra & Mahindra Financial Services shares surged 10% to an intraday high of ₹384.50 on Wednesday’s market, compared to ₹349.85 at the previous stock market close, according to NSE data.

The NBFC firm announced its Q1 earnings update during the final hour of the afternoon market session on Tuesday, July 21, after which the company shares ended 8.4% higher at ₹349.85, compared to ₹322.55 apiece at the previous trading close.

At 12:51 pm, M&M Finance shares were trading 8.52% higher at ₹375.35 during the market session on July 22.

How did M&M Finance perform in Q1 results?

M&M Finance posted a 70% rise in its standalone net profit to ₹898.65 crore in the April to June quarter results for the financial year 2026-27, compared year-on-year (YoY) 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.

NSE filings showed that M&M Finance’s interest income for the June quarter surged 11% to ₹4,620.87 crore in the current fiscal year, compared with ₹4,164.59 crore in the same period a year earlier.

The company’s income from fees and commissions also advanced 40% to ₹223.24 crore in the first quarter, from ₹159.97 crore in the same quarter of the previous year, according to the standalone financial report.

The data also showed that the NBFC company’s total revenue from core operations gained 12.5% to ₹4,972.12 crore, from ₹4,419.37 crore a year earlier.

Here’s what analysts say

Analysts from leading investment firm HSBC said that M&M Finance recorded stronger execution in fees, operating expenses, and asset quality of the non-banking financial company.

“Increase FY27-29 EPS estimates 33-37% to reflect faster disbursements growth, stronger fees, lower expenses,” said the analysts.

While experts from Jefferies said that they expect a gradual improvement in AUM growth and range-bound net interest margins (NIMs).

“Tech and management initiatives are improving underwriting, which should reduce asset quality volatility vs past. The valuations seem reasonable, but near-term risks to growth & AQ from weak monsoon,” said the analysts.

Margin gains

The Q1 earnings report showed that Mahindra & Mahindra Financial Services’ net interest margins (NIM) advanced 60 basis points to 7.3% in the first quarter of FY27, in comparison with 6.7% in the same period a year earlier.

In value terms, NIM improved 21% YoY to ₹2,766 crore in the June quarter, compared to ₹2,285 crore in the same period a year earlier, as per the financial statements.

While the NBFC firm’s net profit margins expanded to 18.07% in the period under review, in comparison to 11.93% levels in the corresponding quarter a year earlier, according to the NSE filings.

M&M Finance share price performance

M&M Finance shares have delivered more than 153% returns to investors in the last five years, over 25% gains in the last three years, and 43% returns in the past one-year period, according to NSE data.

On a year-to-date (YTD) basis, the company shares have lost 6%, but the stock has risen more than 29% in the last one-month period, according to the exchange data. M&M Finance shares were trading 17% higher over the last five market sessions.

Shares of M&M Finance surged to a 52-week high of ₹412.20 on December 23, 2025, while the 52-week low was at ₹246.35 on July 29, 2025. The NMFC firm’s market capitalisation (m-cap) was at ₹52,075 crore as of the trading session on Wednesday, July 22, 2026.