New Research Reports

We maintain our BUY recommendation on the stock.

Net Interest Income for Q4FY25 stood at INR 72,836 Mn., up 5.4% YoY (+1.2% QoQ), below our estimates by 1.2% led by lower-than-expected growth in advances. PPOP came in at INR 54,722 Mn., up 0.2% YoY (+5.7% QoQ). Adjusted PAT stood at INR 35,517 Mn., down 14.1% YoY (+7.5% QoQ), in-line with our estimates, despite the provisions being higher (~30%) than our estimate led by lower taxes.

PAT beat our estimates by 5% mainly aided by govt-guaranteed SRs; return ratios stay steady with RoA/RoE of 1.1/17.3% in FY25

MM reported a better-than-expected operating performance in 4QFY25, led by a strong margin beat in the FES segment (at 19.4% vs 17.3% estimated). The QoQ margin improvement was particularly commendable as it came in a seasonally weak quarter.

Consolidated revenues for Q4FY25 stood at INR 3,65,952 Mn., reflecting a growth of 14.2% YoY (+14.2% QoQ), surpassing our estimates led by higher revenue from operations and higher premium income. Consolidated profit stood at INR 47,563 Mn., up 16.4% YoY (+7.8% QoQ). The cost-to-income ratio improved to 72.5% from 74.6% in Q4FY24. Net income was largely in-line with our estimates.

We maintain our BUY recommendation on the stock.

Mahindra & Mahindra’s (M&M) EBITDA margin, at 14.9%, was up ~30bps QoQ (I-Sec est.: 14.3%). Beat in margin was led by FES segment with EBIT margin up 130bps QoQ to 19.4% (I-Sec est.: 17.3%). Auto segment’s EBIT margin was down 50bps QoQ at 9.2%, in-line with our estimate.

NII for Q4FY25 grew 22.4% YoY (+4.5% QoQ) to INR 98,072 Mn., which was below our estimates by 3.4%. PPOP stood at INR 79,675 Mn., up 24.3% YoY (+2.1% QoQ), which was below our estimates by 6.0%, led by weaker NII growth and higher other opex. PAT stood at INR 45,456 Mn., up 18.9% YoY (+5.5% QoQ), below our estimates led by higher provisions.

Q4FY25 marked a mixed performance from life insurance and lending business but the general insurance business reported weak numbers. Bajaj Finance’s consolidated asset under management (AUM) stood at Rs. 4,16,661 crore, up 26% y-o-y/5% q-o-q.