💰 Financial Performance

Revenue Growth by Segment

Total Revenue for H1 FY26 reached INR 30.32 Cr, representing a 28.8% YoY growth from INR 23.53 Cr in H1 FY25. This was driven by Interest Income (INR 29.29 Cr, up 28.8% YoY) and Fees & Commission Income (INR 1.01 Cr, up 27.6% YoY).

Geographic Revenue Split

The company is primarily based in Mumbai, Maharashtra, with a high geographic concentration in this region as noted in credit rating assessments.

Profitability Margins

Profit After Tax (PAT) for FY24 was INR 10.5 Cr, a 32.9% increase from INR 7.9 Cr in FY23. Return on Assets (RoA) improved to 4.6% (annualized) for 9M FY25 from 4.4% in FY24.

EBITDA Margin

Operating Profit before tax for H1 FY26 was INR 8.21 Cr on revenue of INR 30.32 Cr, yielding a core operating margin of approximately 27.1%.

Capital Expenditure

Promoters infused INR 7 Cr in FY24 and raised INR 12.79 Cr via warrant conversion in August 2025. A further infusion of INR 11 Cr is expected by September 2025/FY26 to support AUM growth.

Credit Rating & Borrowing

The company maintains a 'Stable' credit rating from CRISIL. The average cost of borrowings increased to 10.8% for 9M FY25 from previous periods.

⚙️ Operational Drivers

Raw Materials

As an NBFC, the primary 'raw material' is Debt Capital, which represents 100% of the funding required for onward lending operations.

Import Sources

100% of capital is sourced domestically from the Indian banking and financial system.

Key Suppliers

Key capital providers include Federal Bank, State Bank of India (SBI), Indian Overseas Bank (IOB), ICICI Bank, Catholic Syrian Bank, City Union Bank, Tata Capital, and Poonawalla Fincorp.

Capacity Expansion

Assets Under Management (AUM) grew to INR 269.3 Cr as of December 31, 2024, up 17.1% from INR 229.9 Cr in March 2024 (which was up 42.7% from INR 161.1 Cr in March 2023).

Raw Material Costs

Finance costs reached INR 13.36 Cr in H1 FY26, representing 44.1% of total revenue, up from 35.1% in H1 FY25 due to increased borrowing to fund the loan book.

Manufacturing Efficiency

Operating costs as a percentage of AUM elevated to 3.7% in FY24 from 3.3% in FY23 due to branch additions and geographical diversification efforts.

Logistics & Distribution

Distribution costs are primarily driven by employee benefits (INR 4.39 Cr in H1 FY26) and other operating expenses (INR 2.79 Cr in H1 FY26).

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be achieved through a planned INR 11 Cr promoter capital infusion in FY26, geographical diversification beyond Mumbai, and a strategic shift toward lower-ticket size MSME loans to improve asset quality and market penetration.

Products & Services

Business loans for MSMEs, Loans Against Property (LAP), Gold loans, and Personal loans.

Brand Portfolio

Mangal Credit and Fincorp Limited (MCFL).

New Products/Services

Expansion of the Gold loan and MSME business loan portfolios is expected to contribute the majority of incremental revenue growth.

Market Expansion

Targeting geographical diversification beyond the Mumbai region to reduce regional concentration risk.

Strategic Alliances

Maintains funding relationships with over 10 major banks and NBFCs including SBI, ICICI, and Tata Capital.

🌍 External Factors

Industry Trends

The NBFC industry is seeing a shift toward secured MSME lending; MCFL has positioned itself by increasing its secured AUM contribution to 57% to ensure long-term sustainability.

Competitive Landscape

Competes with private sector banks and other MSME-focused NBFCs like Cholamandalam and Poonawalla Fincorp.

Competitive Moat

The company's moat is built on strong promoter support (INR 25 Cr infused) and a diverse lender base, which provides a capital cushion and liquidity access that is sustainable as long as asset quality (90+ dpd) remains below 4%.

Macro Economic Sensitivity

Highly sensitive to RBI monetary policy; a 1% increase in repo rates directly impacts the 10.8% borrowing cost for its INR 178.9 Cr debt.

Consumer Behavior

Increasing demand for formal credit among MSMEs as they shift away from unorganized lending sectors.

Geopolitical Risks

Low risk due to domestic focus, though general economic slowdowns could impact MSME repayment capacity.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI Scale Based Regulation (SBR) for non-deposit taking NBFCs and SEBI listing requirements.

Taxation Policy Impact

Standard Indian corporate tax rates apply; H1 FY26 tax expense was not explicitly detailed but PBT was INR 8.21 Cr.

Legal Contingencies

No major pending court cases or case values disclosed in the available financial reports.

⚠️ Risk Analysis

Key Uncertainties

Asset quality remains the primary uncertainty; an increase in 90+ dpd beyond 4% would significantly impact earnings and credit ratings.

Geographic Concentration Risk

High concentration in Mumbai/Maharashtra, with the region contributing the vast majority of AUM.

Third Party Dependencies

High dependency on banking partners for debt refinancing and liquidity support.

Technology Obsolescence Risk

Not disclosed; however, digital transformation in loan processing is an industry-wide requirement.

Credit & Counterparty Risk

MSME borrowers represent the primary credit risk; receivables quality is monitored through impairment on financial instruments (INR 0.81 Cr in H1 FY26).