MIFL records Rs.818mn PBT in FY 2025-26, up 193% YoY

• PAT up 228% YoY to Rs.478mn
• Disbursements up 98% YoY to Rs.57.6bn
• Gross stage 3 ratio improves to 1.73%

Mahindra Ideal Finance Ltd (MIFL) reported its strongest ever financial performance in the year ended March 31, 2026, recording a significant growth across profitability, lending volumes and operational efficiency.

The company posted a profit before tax (PBT) of Rs.818 million, reflecting a 193 percent year-on-year (YoY) increase, while profit after Tax (PAT) rose to Rs.478 million, marking a 228 percent YoY growth. 

Total disbursements for the financial year FY 2025-26 reached Rs.57.6 billion, an increase of 98 percent YoY, supported by continued expansion in lending activity across the company’s product offerings.

MIFL Managing Director and CEO Mufaddal A. Choonia said, “Over the past year, improving economic conditions and continued momentum in vehicle financing have supported strong demand across our lending segments. Alongside this, we have maintained a clear focus on credit quality, cost discipline and strengthening our customer reach, which has contributed to the growth in disbursements and profitability. 

As we continue to expand, our priority remains on sustaining this momentum while delivering reliable and accessible financial solutions to our customers.”

Operational efficiency improved during the year, with the cost-to-income ratio declining to 50.5 percent, from 68.9 percent YoY, while the Opex ratio improved to 5.6 percent, from 8.0 percent YoY. 

Profitability indicators strengthened, with return on assets at 3.40 percent, compared to 1.88 percent YoY and return on equity at 14.40 percent, compared to 4.85 percent YoY, reflecting improved earnings quality and capital utilisation.

MIFL’s strong lending momentum resulted in the company’s total loan book growing to Rs.26.95 billion, up 82 percent YoY, while total assets grew to Rs.30.98 billion, reflecting an 81 percent YoY increase. 

The asset quality indicators improved further, with the gross stage 3 ratio declining to 1.73 percent, from 1.86 percent YoY, supported by disciplined credit evaluation and strengthened collection processes.

MIFL stated that continued expansion in its multi-brand financing portfolio, along with the ongoing investments in digital lending capabilities and customer service infrastructure, has positioned the company to serve a broader customer base while maintaining a prudent, responsible and quality-focused approach to lending.