Mahindra Ideal Finance delivers strong FY25 results

• 111% growth in disbursements and 41% surge in profits

Mufaddal Choonia - MD & CEO

Rohit Agarwalla - CFO

Mahindra Ideal Finance Limited (MIFL) posted robust top and bottom-line performance for the financial year ended 31 March 2025.      

Backed by strong demand across its lending segments and disciplined cost management initiatives, the company posted aProfit after tax (PAT) of Rs. 146 million in FY25, an increase of 41 percent over FY24. 

Total revenue rose 19 percent to Rs. 2.74 billion, with net interest income climbing 22 percent to Rs. 1.34 billion and other operating income up 91 percent to 

Rs. 296 million. 

Pre-Provisioning Operating Profit (PPOP) jumped 79 percent to Rs. 507 million, while total operating expenses grew a more restrained 17 percent following significant expansions in the company’s branch network and team strength. A continued focus on credit and collection processes saw the company recording a very healthy Gross Stage 3 of 1.86 percent as of 31 March 2025, highlighting the quality of the company’s lending portfolio. 

“Over the past year, Sri Lanka’s economy has shown welcome signs of stabilization, with price pressures easing and monetary policy supportive. True to our vision of creating a strong financial services business with the customer at its core, we at Mahindra Ideal Finance have been working hard to enhance our product suite and service capabilities –both physical and digital –while reinforcing a strong risk management framework and optimizing costs. Our business performance in FY 25 reflects that continued effort which is also illustrated into our credit ratings of AA-(lka) Outlook Stable by 

Fitch Ratings”. 

“The recent liberalization of vehicle imports has further boosted our momentum, driving the strong financial results we’re announcing. Going forward, we will build on this foundation to serve all Sri Lankans inclusively and strive to deliver sustainable, long-term value for our stakeholders,” Mahindra Ideal Finance MD & CEO, Mufaddal Choonia said. 

MIFL’s performance was driven by strong growth across all revenue streams – spanning gold loans, SME and business loans, leasing facilities for motorcars, SUVs, vans & commercial vehicles, two &three-wheelers and agriculture vehicles like tractors etc.