Mahindra Finance reaffirms "CARE AAA; Stable" credit ratings

Mahindra & Mahindra Financial Services Limited (MMFSL) confirmed on October 8, 2025, the reaffirmation of its credit ratings for various debt instruments by CARE Ratings Limited, with all key ratings at "CARE AAA; Stable." This includes secured non-convertible debentures, subordinated debt (public issue and privately placed), unsecured non-convertible debentures, and the long-term debt program. The total rated amount for secured non-convertible debentures is ₹12,343.50 crore, while subordinated debt (public issue) stands at ₹933.00 crore.

Additionally, unsecured non-convertible debentures are rated for ₹1,000.00 crore, and subordinated debt (privately placed) is rated for ₹2,485.00 crore. The long-term debt program has a rated amount of ₹4,059.03 crore. Some reductions were noted, including for secured non-convertible debentures and subordinated debt (privately placed), both due to facilities being repaid and matured.

CARE Ratings cited MMFSL's comfortable capitalization, strong liquidity, diversified asset mix, and funding profile as key strengths. The ratings also reflect the strategic importance of MMFSL to its parent, Mahindra & Mahindra Limited (M&M), and the expected support from M&M. While asset quality remains moderate due to the seasonal income of rural customers, the outlook remains "Stable."