MIFL records PBT of LKR 818Mn in FY 2025-26, up 193-pct YoY

Profit After Tax, up 228% YoY to LKR 478 Mn
Disbursements up 98% YoY to LKR 57.6 Bn
Gross Stage 3 ratio improves to 1.73%

Mahindra Ideal Finance Ltd. (MIFL) reported its strongest ever financial performance in the year ended 31 March 2026, recording significant growth across profitability, lending volumes, and operational efficiency.

The company posted a Profit Before Tax (PBT) of LKR 818 million, reflecting a 193% Year-on-Year (YoY) increase, while Profit After Tax (PAT) rose to LKR 478 million, marking a 228% YoY growth. Total disbursements for the financial year FY 2025-26 reached LKR 57.6 billion, an increase of 98% YoY, supported by continued expansion in lending activity across the company’s product offerings.

MIFL Managing Director & CEO, Mufaddal A. Choonia said:

“Over the past year, improving economic conditions and continued momentum in vehicle financing have supported strong demand across our lending segments. Alongside this, we have maintained a clear focus on credit quality, cost discipline, and strengthening our customer reach, which has contributed to the growth in disbursements and profitability. As we continue to expand, our priority remains on sustaining this momentum while delivering reliable and accessible financial solutions to our customers.”

Operational efficiency improved during the year, with the cost-to-income ratio declining to 50.5% from 68.9% YoY, while the Opex ratio improved to 5.6% from 8.0% YoY. Profitability indicators strengthened, with Return on Assets (ROA) at 3.40% compared to 1.88% YoY and Return on Equity (ROE) at 14.40% compared to 4.85% YoY, reflecting improved earnings quality and capital utilisation.

MIFL’s strong lending momentum resulted in the company’s total loan book growing to LKR 26.95 billion, up 82% YoY, while total assets grew to LKR 30.98 billion, reflecting an 81% YoY increase. Asset quality indicators improved further, with the Gross Stage 3 ratio declining to 1.73% from 1.86% YoY, supported by disciplined credit evaluation and strengthened collection processes.

MIFL stated that continued expansion in its multi-brand financing portfolio, along with ongoing investments in digital lending capabilities and customer service infrastructure, has positioned the company to serve a broader customer base while maintaining a prudent, responsible and quality-focused approach to lending.