Mahindra Ideal Finance records 204% growth in PBT to Rs.477mn

Mahindra Ideal Finance Limited (MIFL) has delivered a strong growth in income and profits during the six months ended September 30, 2025 (H1 FY26), fuelled by a rapid expansion in its multi-brand vehicle financing portfolio.  

Total income for the period rose by 47 percent year-on-year (YoY) up to Rs.1.85 billion, while profit before tax (PBT) increased by 204 percent YoY to Rs.477 million and profit after tax increased to Rs.209 million, reflecting a growth of 374 percent YoY.

“Following the reopening of vehicle imports, coupled with the continued positive trends in economic stability in the country, we have seen a growing and steady demand for multi-brand vehicle financing across Sri Lanka. Together with a consistent focus on delivering consistent, personalised services for our vehicle importer and dealer partners, the customers as well as disciplined management of credit quality and cost, we have delivered our best results on record in the first half of the current fiscal. Moving forward, we aim to maintain this momentum and remain committed to delivering responsible, value-driven lending solutions enabling both our wholesale and retail customers to meet their aspirations,” MIFL Managing Director and CEO Mufaddal Choonia said.       

A notable highlight during the period in review was the company’s total asset base, which grew by 54 percent YoY to cross Rs.22.1 billion, securing its position as a medium sized finance company. The company’s loan book grew by 84 percent YoY to Rs.20.4 billion, supported by continued demand for retail lending and a measured expansion across key customer segments. The cost-to-income ratio improved to 54 percent YoY, driven by improved operating efficiency.

The asset quality indicators recorded further improvement during the period. The gross stage three ratio was 1.66 percent as at September 30, 2025, compared with 1.86 percent at end-March 2025. The company maintained a healthy total capital adequacy ratio of 18.1 percent, compared to the required ratio of 12.5 percent.