Street View: India's M&M Financial Services faces funding, asset risks

Mahindra and Mahindra Financial Services

22/10/2026 06:03

** India's Mahindra & Mahindra Financial Services MMFS.NS reports a 15.4% increase in Q2 revenue and a 54.8% rise in profit 
** Shares of the non-bank lender slip 4.7% to 283.65 rupees 

MOUNTING FUNDING COSTS
** Nomura ("buy") cuts PT to 400 rupees from 415 rupees assuming rising funding costs, remains cautious about tractor segment's asset-quality trends
** Jefferies ("hold) lowers PT to 330 rupees from 365 rupees and says tighter insurance norms pose fee income risks
** Systematix ("hold," PT: 340 rupees) initiates coverage and says near-term earnings vulnerable to margin pressure, rising funding costs and asset-quality risks, as rural-focused vehicle finance portfolio faces weaker cash flows
** Ambit Capital ("sell," PT: 283 rupees) says MMFS has been more prone to asset quality stress during El Nino years
** Antique Stock Broking ("buy," PT: 400 rupees) says rising funding costs, proposed insurance commission cuts and drought-led tractor stress remain key monitorables


 (Reporting by Puyaan Singh in Bengaluru)
 ((Puyaan.Singh@thomsonreuters.com))