Shares of Mahindra & Mahindra Financial Services Ltd witnessed a 7% plunge following the decline in disbursements and mixed asset quality figures in the September quarter.

Mahindra & Mahindra Financial Services estimated disbursements at approximately ₹13,160 crore in Q2 FY25, representing a 1% year-on-year (YoY) decline.

However, the company witnessed an overall disbursement of ₹25,900 crore for the first half of FY25, marking a 2% growth from the previous year, the company said in a stock exchange filing.

The company's business assets reached ₹1,12,600 crore, reflecting a robust 20% growth compared to September 2023. The asset quality remained a focal point, with Stage-3 assets estimated at 3.8%, an improvement from 4.3% in the previous year. Stage-2 assets, however, rose to 6.4% from 5.7% as of September 30, 2023, signalling potential stress.

Collection efficiency stood steady at 96%, consistent with the same period last year, indicating stable operational performance.

The Mahindra & Mahindra Financial Services Ltd stock opened at ₹318.95 on the BSE, down nearly 1% from its previous close of ₹322.15. The downward trend persisted, with the stock hitting an intra-day low of ₹300.1, marking a decline of almost 7% from Thursday's closing level.

The financial services firm continues to maintain a strong liquidity position, with over ₹8,500 crore in its liquidity chest. While the company’s balance sheet remains solid, the dip in disbursements and a rise in Stage-2 assets have raised investor concerns, leading to the stock’s significant drop.

Shares of Mahindra & Mahindra Financial Services were trading 3.93% lower at ₹309.5 on the BSE around 9.41 am. With this, the company's market capitalisation stood at ₹38,300 crore.

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