Mahindra Ideal Finance Ltd. (MIFL) has announced a record-breaking financial performance for the fiscal year ending March 31, 2026, showcasing substantial advancements in profitability, lending activity, and operational efficiency.
The company reported a Profit Before Tax (PBT) of LKR 818 million, representing a remarkable 193% increase compared to the previous year. Meanwhile, Profit After Tax (PAT) surged to LKR 478 million, reflecting a growth of 228% year-on-year. MIFL’s total disbursements for the financial year reached LKR 57.6 billion, marking a year-on-year increase of 98%, driven by a robust expansion in the company’s lending services.
Mufaddal A. Choonia, Managing Director and CEO of MIFL, remarked, “The past year has seen improvements in economic conditions, along with a sustained demand for vehicle financing across our lending sectors. We have placed a strong emphasis on maintaining credit quality, exercising cost control, and enhancing our customer outreach, which has been instrumental in driving both disbursements and profitability. As we move forward, our focus will remain on continuing this growth trajectory while providing reliable and accessible financial solutions to our clients.”
During the year, operational efficiency saw significant enhancements, with the cost-to-income ratio decreasing to 50.5% from 68.9% year-on-year. Additionally, the operating expense ratio improved from 8.0% to 5.6% year-on-year. Key profitability metrics also saw positive trends, with Return on Assets (ROA) rising to 3.40% from 1.88% in the previous year, and Return on Equity (ROE) increasing to 14.40% from 4.85%, indicating stronger earnings quality and more effective capital utilization.
MIFL’s vigorous lending activities contributed to a substantial growth in its total loan portfolio, which expanded to LKR 26.95 billion, an 82% increase year-on-year. Total assets also grew, reaching LKR 30.98 billion, which is an 81% rise compared to the previous year. The company’s asset quality indicators showed further improvement, with the Gross Stage 3 ratio decreasing to 1.73% from 1.86% year-on-year, attributed to stringent credit assessments and enhanced collection processes.
Furthermore, MIFL highlighted that its ongoing growth in the multi-brand financing sector, coupled with continuous investments in digital lending technologies and customer service infrastructure, has effectively positioned the company to cater to a wider customer base while adhering to a responsible, quality-focused lending approach.
