27 Apr , 2026 By : Debdeep Gupta
Shares of Mahindra & Mahindra Financial Services Ltd surged on Monday, rising as much as 8.8 percent in late morning trade to Rs 320.4, making it the top gainer on the BSE midcap index. This marks the stock’s sharpest single-day gain since October 2022, driven by a strong Q4 FY26 performance and multiple brokerage upgrades.
The rally in M&M Financial stock today follows the company’s Q4 FY26 results announced after market hours on Friday, where net profit rose 55 percent year-on-year to Rs 873 crore, while net interest income (NII) increased 24.8 percent to Rs 2,709.3 crore. Core income growth remained strong at 24 percent, even as provisions stayed elevated. The management also retained its growth guidance of 16-18 percent year-on-year.
Brokerages turned more bullish post earnings. Nomura maintained a “buy” call with a target price of Rs 400, citing a 9 percent profit beat led by margin expansion. But it flagged provision overlays for FY27 as a sign of caution.
Kotak Institutional Equities upgraded M&M Financial stock to “buy” from “reduce” and raised its target price to Rs 350. ICICI Securities also upgraded it to “buy” with a target of Rs 355.
However, views remain divided. Macquarie retained an “underperform” rating with a target price of Rs 280. It said that while return on assets remains healthy at around 2.4 percent, overall growth and profitability still lag peers. The brokerage pointed out that higher provisions offset operating cost benefits.
Operationally, the company reported a 12 percent rise in assets under management and an 11 percent increase in disbursements. Net interest margins expanded by about 101 basis points year-on-year to 7.5 percent. Asset quality metrics showed improvement, with Stage 3 assets at 3.4 percent and collection efficiency rising to 98 percent, supported by digital-led collections and tighter underwriting.
The stock has now gained 25.9 percent over the past year, significantly outperforming the Nifty 50, which is down 1.1 percent during the same period.
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