M&M Financial Services shares crash 10% after Q2 results. What are Nomura and other analysts saying?
Mahindra Finance moved lower in a quarterly results development for Q2FY27.
· ET Stocks, Economic Times Markets
Mahindra & Mahindra Financial Services shares fell sharply on despite a 55% year-on-year rise in Q2FY27 net profit to Rs 882 crore. Nomura lowered its target price to Rs 400 while retaining a Buy rating, citing asset quality concerns and rising funding costs. Motilal Oswal maintained its Buy rating.
Key facts
- Period
- Q2FY27
The analysis
Mahindra Finance reported Rs 882 crore and Rs 400 for Q2FY27, with movement of 10% and 55% attached to those lines. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -5.9% on the day at ₹280.00, and has returned -15.0% over three months. It sits 32% below its 52-week high, which means a good deal of bad news was already in the price. The financial services sector has moved -11.9% over the same period, so Mahindra Finance is running 3.1 points behind its peers.
With Mahindra Finance, Mahindra & Mahindra and Motilal Oswal all implicated, this reads as a Financial Services-level move rather than a company-specific one, which is the more durable kind of signal.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- It touches several names at once (M&MFIN, M&M, MOTILALOFS), which points to a sector-level rather than company-specific driver.
- Sector exposure: Financial Services, Auto, Capital Markets.
- The immediate tone of coverage reads negative.
In this story
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