MAS Financial Services has successfully completed the allotment of secured Non-Convertible Debentures (NCDs) worth ₹100 crore through private placement on March 25, 2026, as announced to stock exchanges under Regulation 30 of SEBI LODR Regulations.

Debenture Allotment Details

The Finance Committee of the Board of Directors has allotted 10,000 rated, listed, senior, secured, redeemable, transferable, taxable, non-convertible debentures denominated in Indian Rupees. Each debenture carries a face value of ₹1,00,000 with an aggregate nominal value of ₹100,00,00,000.

Interest Rate and Payment Structure

The NCDs carry an annual interest rate of 8.60% payable on a monthly basis. Interest payments will commence from April 25, 2026, and continue until the final redemption date, providing regular income flow to debenture holders.

Security and Credit Rating

The debentures are secured by a first ranking exclusive charge over identified receivables of the company, with the value of hypothecated assets maintained at least 1.10 times the outstanding debenture amounts. CARE Ratings Limited has assigned a credit rating of "CARE AA-/Stable" to these debentures.

Redemption Structure

The debentures will be fully redeemed on a pari passu basis through quarterly payments commencing from June 25, 2026, until the final redemption date of March 25, 2029. In case of payment default, additional interest of 2.00% per annum over the base rate will be applicable.

The successful completion of this NCD issuance demonstrates MAS Financial Services' continued access to debt capital markets and strong investor confidence in the company's creditworthiness.

Source: Company/INE348L01012/da257aba-11fa-4e8f-a44c-b06b982fb021.pdf

MAS Financial Services has received comprehensive credit rating actions from CARE Ratings Limited across its various debt instruments, with the rating agency taking multiple decisions including reaffirmations, new assignments, and withdrawal of ratings on fully redeemed facilities.

Rating Actions Overview

CARE Ratings has undertaken extensive rating actions covering the company's diverse funding instruments:

The rating agency has withdrawn the rating on non-convertible debentures with ISIN INE348L07191, considering the full redemption of these facilities.

Business Performance and Growth

MAS Financial Services demonstrated steady business momentum during the nine-month period of FY26. The company's consolidated disbursements increased to ₹10,112.00 crore in 9MFY26 from ₹9,085.00 crore in 9MFY25, reflecting continued business expansion. Consolidated total income rose to ₹1,457.00 crore in 9MFY26 compared to ₹1,161.00 crore in 9MFY25, supported mainly by higher interest income.

The company's consolidated profit after tax for 9MFY26 stood at ₹271.00 crore, marking an 18.00% year-on-year increase from ₹231.00 crore in 9MFY25. At the consolidated level, the net interest margin improved to 5.48% in 9MFY26 from 5.43% in 9MFY25, supported by a larger loan book and higher investment income.

Portfolio Composition and Asset Quality

As of December 31, 2025, the company's consolidated assets under management stood at ₹14,641.46 crore, compared to ₹12,867.91 crore as of March 31, 2025. The portfolio composition reflects diversification across multiple lending segments:

The company's asset quality parameters showed some moderation, with consolidated gross stage 3 and net stage 3 ratios at 2.47% and 1.64% respectively as of December 31, 2025, compared to 2.35% and 1.56% as of March 31, 2025.

Financial Metrics and Capitalization

MAS Financial Services maintained comfortable capitalization levels with a capital adequacy ratio of 22.84% and tier-I CAR of 21.48% as of December 31, 2025. The company's overall consolidated gearing and consolidated AUM to net worth stood at 3.47x and 5.03x respectively as of December 31, 2025.

Rating Rationale and Outlook

CARE Ratings' stable outlook reflects expectations of consistent and profitable business growth in the near-to-medium term while maintaining asset quality parameters under control. The ratings factor in the company's healthy business uptick with diversified portfolio mix, comfortable capitalisation levels, and long-standing track record in the lending business.

However, the ratings are partially offset by the company's moderately concentrated customer base and geographic presence, with exposure to riskier segments. The company's operations span across 13 states with 208 branches at standalone level and 101 branches of its housing finance subsidiary, alongside 215 NBFC partnerships as of December 31, 2025.

Source: None/Company/INE348L01012/cef00afe-d3ac-4521-ac0e-4417e120a913.pdf