MAS Financial Services Limited (MASFIN) released the transcript of its conference call held on October 06, 2025, discussing the unaudited financial results (Standalone & Consolidated) for the quarter ended September 30, 2025. The transcript is available on the company's website. Key highlights from the call include: * Consolidated Financial Performance (Q2 FY26 vs Q2 FY25): * Assets Under Management (AUM) grew by 18.32% to ₹13,821 crores from ₹11,681 crores. * Profit After Tax (PAT) increased by 17.79% to ₹91.43 crores from ₹77.62 crores. * Net Stage 3 assets stood at 1.69% as on September 30, 2025. * Standalone Financial Performance (Q2 FY26 vs Q2 FY25): * AUM grew by 18% to ₹12,999 crores from ₹11,016.65 crores. * PAT increased by 17.15% to ₹89.70 crores from ₹76.57 crores. * Total income grew by 25.09% to ₹458.61 crores from ₹366.62 crores. * Housing Finance (MRHMFL) Performance (Q2 FY26 vs Q2 FY25): * AUM grew by 23.65% to ₹821.70 crores from ₹664 crores. * PAT increased by 25.90% to ₹2.99 crores from ₹2.37 crores. * Net Stage 3 assets were 0.66% as on September 30, 2025. * Strategic Vision and Outlook: * Management reiterated its medium-term vision to achieve ₹1 lakh crore AUM within a decade, demonstrating a 20% CAGR in AUM and 22% CAGR in profitability over the last decade (2015-2025). * The company is diversifying its asset base, with MSME loans currently at 75% and other products at 25%, aiming for 65-70% MSME and 30-35% other products at ₹20,000 crores AUM. * Distribution channels have expanded to 15,000 pin codes, with direct distribution expected to contribute 70-75% of business in the next 2-3 years. * Technology adoption is a focus, with a 100-person in-house tech team and an operational BRE system. * Capital adequacy is strong at 24.57% (Tier 1 at 22.7%), and debt-to-equity ratio is 3.39x. The company aims for ROAs of 3%+ and a debt-to-equity ratio of 4-4.5% for an ROE of 15-17%. * The average cost of borrowing for the quarter was 9.62%, a 21 basis points reduction year-on-year. * MASFin Insurance Broking, a new subsidiary, received final IRDAI approval and will initially focus on captive business. * Management anticipates an improvement in the challenging MSME sector, expecting Q3 growth of 5-7% over Q2, gradually returning to an annual growth rate of 20-25%.
