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 crore as of September 30, 2025.

Key Highlights

• Consolidated net profit rose 17.79% YoY to ₹91.43 crore in Q2 FY26
• Total income increased 25.19% to ₹482.33 crore
• Standalone AUM grew 18% to ₹12,999 crore
• Disbursements stood at ₹3,259 crore during the quarter

Segment-wise Performance

The MSME segment contributed approximately 60% to the YoY AUM growth.

Asset Quality

The company maintained stable asset quality with gross stage 3 assets at 2.53% and net stage 3 assets at 1.69% of AUM as of September 30, 2025. It carries a management overlay of ₹17.60 crore.

Capital Adequacy

Capital adequacy ratio stood strong at 24.57% with Tier-I capital at 22.71%.

Commenting on the performance, Mr. Kamlesh Gandhi, Founder, Chairman & Managing Director said, "The performance of the company as demonstrated over three decades was consistent and robust demonstrating our capabilities of navigating through tough cycles successfully. Going forward we are confident to maintain a strong growth momentum backed by very strong enablers."

MAS Financial's subsidiary, MAS Rural Housing and Mortgage Finance Limited, also reported healthy growth with AUM increasing 23.65% YoY to ₹822 crore.

The company remains focused on efficient distribution of credit across diversified products and geographies while maintaining strong risk management practices. With its consistent track record and robust financials, MAS Financial appears well-positioned to capitalize on growth opportunities 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.