Mahindra & Mahindra Financial Services (M&MFIN) Near Record Highs: Q2 FY26 Results, Analyst Targets and Outlook as of 1 December 2025

Mahindra & Mahindra Financial Services Ltd (often called Mahindra Finance, NSE: M&MFIN) is entering December 2025 on the front foot: the stock is hovering near record levels, riding on strong Q2 FY26 numbers, an equity recapitalisation via rights issue, and a noticeable pickup in trading activity and retail interest. At the same time, valuations have moved ahead of most 12‑month analyst targets, forcing investors to weigh improving fundamentals against the risk of a pullback.

Mahindra Finance share price today (1 December 2025)

By late morning on 1 December 2025, Mahindra & Mahindra Financial Services was trading around ₹374–376 per share, up modestly from the previous close of ₹371.85 on the NSE. The Economic Times’ live quote page shows an intraday price of about ₹374.15, implying a gain of roughly 0.6% for the day. ^[1]

ICICI Direct’s live snapshot is broadly in the same zone, with an NSE price of ₹376.35, a day range of ₹373.30–₹387.00, and a market capitalisation just above ₹52,300 crore. ^[2]

Key performance markers as of 1 December 2025:

52‑week range: roughly ₹233–₹387, with the high printed only in the last few sessions. ^[3]
Returns: about 18% over one month, ~45% over three months, and ~37% over one year, according to Economic Times return data. ^[4]
Volatility: one‑year beta slightly above 2, signalling that the stock tends to move more aggressively than the broader market. ^[5]

In other words, this is not a sleepy NBFC—M&MFIN is currently a high‑beta, momentum‑driven stock sitting near multi‑year highs.

Fresh highs and heavy volumes: what changed in November?

Several technical and trading signals have converged over the past week:

An ETMarkets midcap slideshow highlighted Mahindra Finance as one of seven midcaps hitting fresh 52‑week highs on 27 November 2025, noting a new high of ₹364.9, a current market price near ₹363.5 and a ~22% gain in a month. ^[6]
On 28 November, the stock was one of just four names in the Nifty 500 to close at a five‑year swing high, with a last traded price of ₹371.85 – a level not seen in half a decade. ^[7]
Economic Times’ technical summary flags a weekly stochastic “buy” crossover on the week ending 28 November, a pattern which historically has delivered an average gain of about 7% within seven weeks for the stock. ^[8]
A MarketsMojo analysis notes that on 1 December 2025, M&M Financial recorded traded value above ₹130 crore and volume exceeding 34 lakh shares, putting it among the more actively traded stocks of the day, even as the price sat below certain key moving averages – a mix of high interest and pockets of caution. ^[9]

Put simply, the stock has shifted from “forgotten NBFC” territory to “momentum darling” in just a few months, helped by a re‑rating after its recapitalisation and improving asset‑quality narrative.

Q2 FY26 results: profit growth with contained stress

The fundamental inflection point is Q2 FY26, for the quarter ended 30 September 2025.

Headline numbers

Business Standard and exchange‑linked data show that in Q2 FY26 Mahindra Finance delivered: ^[10]

Net profit (PAT): around ₹564–566 crore, up roughly 45% year‑on‑year and about 7% quarter‑on‑quarter
Total income: about ₹5,049 crore, up 12.7% YoY and 0.7% QoQ
Net interest income (NII):₹2,279 crore, up 14.6% YoY
Loan book:~13% YoY growth
Disbursements:~₹13,500 crore, up around 3% YoY
EPS: about ₹4.06 for the quarter

The numbers are not just about growth; the mix of growth and credit cost is what matters for an NBFC.

Asset quality and credit cost

On the asset‑quality front, Q2 FY26 looked broadly in line with management guidance: ^[11]

Stage 3 (gross NPAs):3.9% of the loan book
Stage 2 + Stage 3:9.7%
Credit cost for the quarter: roughly 2.2% (annualised)
Stage 3 coverage: about 53%
Collection efficiency: steady at ~96%

Brokerage commentary (Motilal Oswal, Emkay, and others) describes the quarter as operationally strong but with elevated credit costs, noting management’s guidance for full‑year FY26 credit costs around 1.7%, implying an expectation of moderation in coming quarters. ^[12]

Capital and diversification

Capital buffers look comfortable after the 2025 recapitalisation wave: ^[13]

Capital adequacy: around 19.5%, with Tier‑1 at ~16.9%
A ₹2,996 crore rights issue (announced earlier in 2025) has now been fully utilised for its stated objectives, and Mahindra & Mahindra Ltd (the parent) boosted its stake via a ₹1,653 crore subscription.

In its Q2 coverage, Business Standard also notes: ^[14]

Tractor disbursements grew about 41% YoY
Non‑vehicle finance (SME, LAP and other segments) grew around 33% YoY
SME loan book grew ~34% YoY to nearly ₹6,900 crore, with Stage 3 in SME at a low 1.4%

The message: the business is trying to become less of a single‑segment rural vehicle lender and more of a diversified retail and SME franchise, without letting bad loans creep beyond guided levels.

Strategic moves: rights issue, new leadership and governance

Beyond quarterly numbers, the 2025 capital and governance reset is a big part of the story.

A ScanX earnings and corporate‑action digest highlights several developments around October–December 2025: ^[15]

Rights issue fully deployed: Proceeds from the ₹2,996 crore rights issue have been fully utilised, primarily to strengthen capital, fund growth and de‑lever the balance sheet.
AUM expansion: Assets under management (AUM) are cited around ₹1.27 lakh crore, up about 13% YoY, in line with the loan‑book growth seen in Q2.
Leadership changes:
- Aarti Nihalani has been appointed Chief Operating Officer, effective 1 December 2025, bringing consulting and financial‑services experience (including leadership roles at Oliver Wyman India).
- Padmaja Chunduru joined as an independent non‑executive director from 10 November 2025, with decades of banking and capital markets experience, including stints as MD & CEO of NSDL and Indian Bank.

ScanX and other coverage emphasise that these moves go hand‑in‑hand with an update to the company’s insider‑trading code to align with recent SEBI regulations, signalling a more formalised governance and risk‑management framework. ^[16]

For a lender operating deep in rural and semi‑urban India, credible governance, capital strength and experienced board members are not window dressing; they are risk mitigants.

How analysts view Mahindra Finance after the rally

Consensus targets cluster below the current price

Despite the sharp price run‑up, the sell‑side view is not uniformly euphoric.

Different aggregators show broadly similar patterns:

Economic Times consensus:
- 32 analysts in total
- Rating mix: 7 Strong Buy, 9 Buy, 11 Hold, 5 Sell
- Recent published targets include ₹310 (ICICI Securities, ADD) and ₹263 (Centrum, REDUCE). ^[17]
Trendlyne:
- Average target around ₹316–317
- Implies roughly 14–16% downside versus a last traded price in the ₹376–377 range. ^[18]
INDmoney / S&P Global feed:
- Average 12‑month target ₹321.09
- High target ₹440, low ₹225
- About 32 analysts tracked, with an implied downside of ~13–14% from a current price near ₹376.4. ^[19]

The pattern is clear: most analysts still like the business, but many feel the easy valuation upside has been used up.

Individual broker calls

Recent broker and analyst commentary adds colour: ^[20]

Motilal Oswal: “BUY” with a ₹350 target, noting strong PAT growth, but also pointing to temporarily muted disbursements and elevated credit costs.
InCred Equities: “ADD” with a raised target of ₹380, arguing that the stock offers favourable value while the company recalibrates toward more stable asset quality.
Emkay: “SELL” with a ₹280 target, cautioning that current valuations already discount an improved return profile and that credit costs remain above comfort levels. ^[21]
Investec (via Investing.com): Raises target from ₹300 to ₹330, maintaining Hold, after an investor day where Mahindra Finance outlined FY25–FY30 aspirations of 18–20% AUM CAGR, 1.3–1.7% credit costs, and mid‑teens return metrics. Investec sees current valuations around 1.6x P/B and 13x FY27E P/E as “fair” for those targets. ^[22]

In short: the Street’s “central case” is constructive but not euphoric. The stock is broadly rated somewhere between Buy and Hold, with average targets sitting below today’s market price.

Technical picture: breakout stock with rich momentum

Alongside the fundamental improvement, Mahindra Finance has turned into a chartist’s favourite:

Business Standard points to a bullish pennant breakout on the daily chart (in its 20 November rally note), with the stock trading above all key moving averages and momentum oscillators firmly in positive territory. The featured technical call there set an upside target of ₹360 (now surpassed) with a stop‑loss near ₹305. ^[23]
Economic Times’ technical insights flag the weekly stochastic buy signal and note that historically, this pattern has, on average, added about 7% over seven weeks after it appears. ^[24]
ETMarkets scans also show multiple 52‑week and five‑year swing highs in late November, a strong confirmation of trend strength. ^[25]

For momentum‑oriented traders, this backdrop is attractive; for long‑term investors, it raises a familiar question: how much future good news is already priced in?

Valuation snapshot: no longer “cheap”

Across major data vendors, Mahindra Finance now trades at moderately rich, but not extreme, valuations:

P/E (trailing, consolidated): about 20–21x
P/B: roughly 2.1–2.4x
Dividend yield: around 1.6–1.7%
Book value per share: roughly ₹155–178, depending on data source and consolidation basis
Market cap: just above ₹52,000 crore. ^[26]

Those multiples are not outrageous for a financial firm targeting high‑teens AUM growth and mid‑teens returns, but they are decidedly higher than where the stock traded when asset quality worries were front and centre in 2022–2023.

The consensus target zone around ₹310–₹320 suggests that, from a traditional analyst‑model perspective, valuation has run ahead of base‑case earnings assumptions.

Forecasts and sentiment: from models to retail flows

Quant and model‑driven forecasts

Algorithmic price‑projection sites, which extrapolate from historical price and volume patterns rather than fundamentals, tend toward a mildly bullish long‑term view. One such model from WalletInvestor, using prices around ₹369.65 on 29 November 2025, projects a potential five‑year price near ₹462 by late 2030, implying about 20% cumulative upside. ^[27]

These models are essentially sophisticated curve‑fitting exercises; they can be a useful sanity check on trend persistence but should not be treated as forecasts in the same sense as cash‑flow‑based analyst models.

Retail participation and search interest

Data from INDmoney’s analytics layer indicates that: ^[28]

Investor holdings on its platform in Mahindra Finance have grown by about 101% over the last 30 days.
Search interest for the stock on that platform is up over 220% in the same period.

These numbers don’t represent the entire market, but they align with what price action and volumes are already telling us: Mahindra Finance is now a crowded trade compared to a year ago.

The medium‑term story: rural finance, diversification and rights‑issue fuel

Stepping back from the near‑term noise, the underlying thesis the company is selling to investors goes something like this: ^[29]

Deep rural and semi‑urban franchise
- Mahindra Finance has built a long‑standing presence across hundreds of thousands of villages, with a large customer base and strong relationships in tractors, entry‑level cars, and light commercial vehicles.
- It retains market leadership in tractor finance and a top‑four position in cars and LCVs, according to investor‑day commentary cited by Investec. ^[30]
Diversification beyond vehicle finance
- Non‑vehicle and SME portfolios are now growing faster than the legacy wheel‑finance book, helping diversify risk. Q2 FY26 showed 33% YoY growth in non‑vehicle finance and 34% YoY growth in SME, with relatively clean asset quality in those segments. ^[31]
Rights issue as a growth enabler, not a band‑aid
- The ₹2,996 crore rights issue and parent’s increased stake provide capital for growth, reduce leverage and improve loss‑absorption capacity. ^[32]
Guided path for 2025–2030
- At its investor day, management outlined aspirations for 18–20% AUM CAGR, credit costs in the 1.3–1.7% band, and mid‑teens return ratios over FY25–30. ^[33]

If management executes close to that plan without major asset‑quality surprises, today’s valuations may prove reasonable. If credit costs stay stuck around 2% and rural stress re‑emerges, the stock could de‑rate from these levels.

Key risks investors are watching

No matter how cheerful the recent charts look, Mahindra Finance still carries the classic risk bundle of a rural NBFC:

Asset‑quality slippage
- Stage 3 loans at 3.9% and Stage 2+3 at 9.7% are within guidance but not low in absolute terms, especially with credit costs at 2.2% in Q2. A couple of weak monsoons, commodity shocks or regulatory changes could push delinquencies higher than planned. ^[34]
Interest‑rate and funding‑cost risk
- As a leveraged lender, Mahindra Finance is sensitive to shifts in borrowing costs. Rights‑issue capital helps, but the business model still depends on maintaining a healthy spread between lending yields and cost of funds.
Cyclical exposure to autos and tractors
- A meaningful chunk of the loan book is tied to tractor and entry‑level auto cycles, which are themselves linked to rural incomes, crop prices, and government support. A slowdown here could hit both growth and repayments. ^[35]
Valuation risk after a big run‑up
- With 3‑month returns above 40% and five‑year returns over 120%, plus an average analyst target below the current spot price, the margin of safety has shrunk. ^[36]
Stock volatility and sentiment shifts
- A beta above 2 and rapidly rising retail interest mean the stock can overshoot in both directions. The same crowd that drives breakouts can accelerate drawdowns when sentiment flips. ^[37]

Bottom line: a stronger business, a more demanding price

As of 1 December 2025, the story on Mahindra & Mahindra Financial Services looks like this:

Fundamentals: clearly better than a couple of years ago – stronger capital, improving profit growth, stable (if not yet low) asset quality, and progress in diversifying beyond traditional vehicle loans. ^[38]
Market action: the stock has re‑rated into the upper end of its historical valuation band, is printing new 52‑week and five‑year highs, and enjoys strong momentum and liquidity. ^[39]
Analyst stance: broadly constructive on the business, but with an average 12‑month target below the current price, and a wide spread between bullish and bearish views. ^[40]

For investors and traders scanning Google News or Discover on 1 December 2025, Mahindra Finance is no longer a contrarian recovery bet. It is a crowded, high‑beta NBFC with upgraded governance and earnings power, but also a valuation that assumes management will deliver on ambitious growth and credit‑cost targets.

That doesn’t make the stock a clear “buy” or “sell”—it makes it a test case in how much good news is already in the price.