MAS Financial Services Limited , a specialized MSME financing company, reported strong growth in its Q2 FY26 results. The company's consolidated Assets Under Management (AUM) grew 18.32% year-over-year to ₹13,821.14 crore as of September 30, 2025.

Key Highlights

• Consolidated net profit rose 17.79% YoY to ₹91.43 crore in Q2 FY26
• Consolidated AUM reached ₹13,821.14 crore, representing an 18.32% year-on-year growth
• Standalone AUM grew 18% to ₹12,999.44 crore
• Standalone PAT increased by 17.15% to ₹89.70 crore

Asset Quality and Capital Adequacy

The company maintained stable asset quality with:

• Gross stage 3 assets at 2.53% of AUM
• Net stage 3 assets at 1.69% of AUM

Capital adequacy ratio remained robust at 24.57%, including Tier II capital.

Subsidiary Performance

MAS Rural Housing and Mortgage Finance Limited, a subsidiary of MAS Financial Services, reported:

• AUM of ₹821.70 crore, showing 23.65% growth
• PAT of ₹2.99 crore

Corporate Updates

• The board appointed Mr. Pranay Modi as Chief Information Security Officer
• The board approved unaudited financial results for the quarter and half year ended September 30, 2025

MAS Financial Services continues to demonstrate consistent and robust performance, navigating through various market cycles successfully. The company's focus on efficient credit distribution across diversified products and geographies, coupled with strong risk management practices, positions it well for future growth in the MSME financing space.

(This article is for informational purposes only and should not be considered as investment advice. Please consult a financial advisor before making any investment decisions.)

MAS Financial Services Ltd , a prominent MSME lender, has seen its stock price decline by 10% over the past two months following its June quarter results. This downturn contrasts with the broader ET NBFC index, which experienced a more modest 2% fall during the same period.

Financial Performance

Despite the stock's recent underperformance, MAS Financial's Q1 results showed promising growth:

• Net Interest Income (NII) grew by 35.70% to ₹237.60 crore
• Net profit increased by 19.10% to ₹83.90 crore

However, the slower profit growth can be attributed to higher operating expenses during the quarter.

Asset Quality

The company's asset quality metrics showed some signs of stress:

• Gross Non-Performing Asset (GNPA) ratio rose to 2.50% from 2.30% year-on-year
• Zero Days Past Due (DPD) proportion decreased to 93.40% from 94.60%

Business Overview

MAS Financial Services operates across 13 states with a network of 206 branches. Key highlights include:

• Assets Under Management (AUM) of ₹12,504.60 crore
• MSME segment comprises 76% of total AUM
• Projected AUM growth of 20-25% for the current fiscal year
• Anticipated improvement in disbursements in the second half through branch expansion

Analyst Outlook

Despite the recent stock price decline, analysts maintain a positive outlook on MAS Financial:

• Motilal Oswal has set a target price of ₹400.00
• This target represents a 33% upside from the current trading price of ₹300.40

Trading Window Closure

MAS Financial Services has announced the closure of its trading window for designated persons and their immediate relatives. Key points from the announcement include:

• Trading window closure effective from October 1
• Closure to remain in effect until 48 hours after the announcement of Q2 and H1 financial results
• Designated persons advised not to trade in company securities during this period

This standard regulatory practice ensures fair trading and prevents insider trading ahead of important financial disclosures.

Conclusion

While MAS Financial's stock has faced short-term pressure, the company's strong financial performance and positive analyst ratings suggest potential for recovery. Investors will be closely watching the upcoming Q2 results for further insights into the company's growth trajectory and asset quality management.