Mahindra and Mahindra Financial Services Limited reported a 12% increase in assets under management to ₹1.34 lakh crore in FY2026, while consolidated profitability rose 27%, Chairman Dr. Anish Shah told shareholders at the company’s annual general meeting.
Shah said the financial services company had strengthened its risk-management processes, internal controls, compliance systems and enterprise management framework during the year. These measures contributed to an improvement in asset quality, with gross Stage 3 assets, or GS3, declining to 3.4%.
The company is now entering what Shah described as a phase of “responsible and sustained growth”, supported by stronger operational foundations, technology investments and improved performance across its subsidiaries.
“Our objective is not merely to grow faster, but to grow with discipline, consistency, and a balanced risk appetite while being guided by our purpose,” Shah said.
Vehicle Finance Remains Central
Vehicle financing continues to be the core of Mahindra Finance’s business, though the company is working to build a more diversified financial services portfolio.
The strategy includes strengthening customer relationships, introducing relevant financial products and using the company’s extensive distribution network, particularly across rural and semi-urban markets.
Shah said Mahindra Finance’s subsidiaries also recorded significantly improved results during FY2026, contributing to the growth in consolidated profitability despite what he described as a dynamic operating environment.
The company’s growth plans come as India continues to demonstrate resilience amid geopolitical uncertainty, changing trade patterns and volatility in global markets.
According to Shah, strong domestic consumption, continued infrastructure spending, improving rural sentiment and faster digital adoption are supporting India’s long-term economic outlook.
Technology and AI Take a Larger Role
Technology remains an important pillar of Mahindra Finance’s transformation programme.
Through Project Udaan, the company has developed a stronger digital and operational backbone. Data analytics and artificial intelligence are now being used to improve decision-making, identify risks earlier, increase employee productivity and enhance customer experience.
The financial sector’s enthusiasm for technology, however, comes with the occasional fine print — and Shah acknowledged concerns about the vulnerabilities that greater digital adoption may create.
“We are aware of some of the worries around vulnerabilities technology may bring and are committed to adopting digital capabilities responsibly,” he said.
Shah noted that regulatory standards in the financial services sector were becoming more rigorous, while technology was rapidly changing customer expectations. Against this backdrop, he said institutions with strong governance, disciplined execution and a culture of innovation would be better placed to generate sustainable value.
Focus on Employees and Leadership
Mahindra Finance also invested in leadership development, frontline talent and organisational culture during the financial year.
The company is seeking to build a workplace centred on accountability, customer focus and continuous learning. Shah said investment in employees and organisational culture would serve as a competitive advantage as the company expands.
The company’s next phase will be led by Managing Director and Chief Executive Officer Raul Rebello, supported by Mahindra Finance’s board and senior leadership team.
“Guided by a strong leadership team under the stewardship of Mr Raul Rebello, and supported by an experienced board, we are looking forward to this next phase with an institution that is strong, agile and prepared for the future,” Shah said.
Rural and Semi-Urban Inclusion Remains Key
Shah said Mahindra Finance’s purpose extended beyond profitability, pointing to its role in expanding access to formal credit across rural and semi-urban India.
For more than three decades, the company has provided financial services to customers who may otherwise have had limited access to organised lending channels.
“We firmly believe that long-term value creation is inseparable from responsible conduct, sustainability, community development, and financial inclusion,” Shah said.
He described this purpose as the company’s “north star”, guiding its decisions as it seeks to balance growth with governance, risk management and social responsibility.
Shah concluded by thanking shareholders, customers, business partners, regulators and employees for their support.
Mahindra Finance’s FY2026 performance indicates that the company is attempting to move beyond balance-sheet expansion alone. Its larger test will be whether it can combine digital scale, rural reach and stronger risk controls without losing the disciplined approach its chairman repeatedly emphasised — a challenge that increasingly defines India’s fast-evolving lending industry.
