Mahindra & Mahindra Financial Services (MMFSL) reported stronger-than-expected pre-provision operating profit (PPOP) and net profit for the September quarter, supported by margin expansion led by passenger vehicles and tractors. However, analysts noted that disbursements remained subdued, loan growth was weak, and the commercial vehicle segment continued to be a key area of concern. Advertisement

Nirmal Bang said it remains positive on the passenger vehicle segment, supported by favourable industry tailwinds, while an improved monsoon is expected to aid tractor sales. However, the brokerage noted that the commercial vehicle and construction equipment businesses continue to be major drags, with industry headwinds persisting.

"We closely track the company’s asset quality metrics; while th

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