Mahindra Finance targets 5X AUM growth and strong profitability

Mahindra & Mahindra Financial Services (MMFSL) presented its strategic vision, aiming for a 5X growth in Assets Under Management (AUM) within the current decade. The company targets an AUM growth rate of 18%-20%, with a projected credit cost of 1.3%-1.7% and return on assets (RoA) between 2.2%-2.5%. This follows a journey that saw a 27% AUM CAGR from FY2005-2015, a 9% AUM CAGR from FY2015-2022, and a re-building phase from FY2022-2025 targeting a 23% AUM CAGR, focusing on asset quality, operations, technology, and controls.

Key strategic priorities include capitalizing on leadership in tractor financing, balancing growth and margins for auto and CV segments, and diversifying into mortgages and SME lending with H1F26 AUM targets of ~INR 7K Cr for both. MMFSL will also focus on cross-selling with an emphasis on fee income, and enhancing operational excellence through AI. The company reported stabilized asset quality, with 90+ DPD (%) improving from 7.7% in FY22 to 3.7% in FY25, and business assets (Rs. K Cr) growing from 83 in FY22 to 119 in FY25.

MMFSL also highlighted its current strengths, serving over 95% of pin codes and having more than 2.5 million live customers. The company emphasizes revamped customer experience through digital onboarding and straight-through processing, supported by a strong management team.