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M&M Financial Services Share Price: Mahindra and Mahindra Financial Services Ltd's shares rallied as much as 8 per cent in the trading session on Wednesday to hit a new 52-week high at Rs 329.50 apiece. The rally followed after the company released its financial results for the quarter ended September 2025 on October 28. As of 3 pm, the stock of M&M Financial was trading at Rs 319.55, up by 6.55 per cent from the previous close on BSE.

M&M Financials delivered good financial performance in the second quarter. The Net Interest Income (NII) grew by 16.6 per cent, while profit after tax (PAT) saw a strong increase of 54.1 per cent.

The Net Interest Margin (NIM) improved to 7 per cent, up from 6.5 per cent in the previous year.

The company's Gross Non-Performing Assets (GNPA) remained flat at 3.9 per cent, and the Net Non-Performing Assets (NNPA) showed a slight improvement, staying almost unchanged at 1.9 per cent compared to 1.91 per cent in the prior quarter.

CLSA has maintained an 'accumulate' rating on M&M Financial, raising its target price to Rs 350 from Rs 310.

JP Morgan has maintained an 'overweight' rating on M&M Financial and slightly raised its target price to Rs 335 from Rs 330.

Jefferies has maintained a 'hold' rating on M&M Financial, raising its target price to Rs 310 from Rs 298, following the Q2 performance. The company’s profit after tax (PAT) exceeded the brokerage's expectations, driven by higher fees and other income, though Jefferies maintains a modest growth outlook.

The brokerage noted that while the company's asset quality held up well, write-offs remained elevated. Jefferies is optimistic about the momentum in the automotive sector post the GST cut, which is expected to hold up in the second half of the year.

However, they expect a modest annualised growth rate for assets under management (AUM) of around 14 per cent over FY26-28.

Citi has maintained a 'buy' rating on M&M Financial and raised its target price to Rs 345 from Rs 292. The brokerage highlighted a reduction in the volatility of Gross Stage 2 (GS2) and Gross Stage 3 (GS3) assets, though credit costs increased to 2.5 per cent.

Despite this, Citi noted a positive impact from a 30 basis points (bps) improvement in Net Interest Margin (NIM), driven by lower funding costs and dividend income. M&M Financial's assets under management (AUM) grew by 4 per cent quarter-on-quarter (QoQ), led by growth in trade advances, small and medium enterprises (SME), tractors, and pre-owned vehicles.

Citi has raised its earnings estimates for FY26-28 by 2 per cent, and has assigned a 1.8x multiple to M&M Financial’s December 2026 book value.

HSBC has maintained a 'hold' rating on M&M Financial and raised its target price to Rs 320 from Rs 276.

Morgan Stanley has maintained an 'equalweight' rating on M&M Financial with a target price of Rs 300. The brokerage noted that the company’s Pre-Provision Operating Profit (PPOP) beat estimates by 4 per cent.

However, the profit after tax (PAT) missed estimates by 8 per cent, as credit cost rose with coverage build-up. Morgan Stanley has raised its earnings per share (EPS) estimates by 3 per cent for FY26 and 1 per cent for FY27, assuming higher Net Interest Margins (NIM) and increased fee income.

The brokerage sees good downside protection for the stock but cannot justify significant upside potential at current levels.

Management remains optimistic about demand during the festive season and expects H2FY26 to outperform H1.

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