Mangal Credit Q1 FY27 Results (NSE: MANCREDIT)
Signal: Earnings grew
The read
The operating trajectory is positive: revenue reached ₹2,215.93 lakh, +53.12% YoY, and PAT reached ₹569.09 lakh, +89.74% YoY, as impairment expense fell 49.16% YoY; however, finance costs rose 54.94% YoY, GNPA increased to 1.80% from 1.40%, NNPA to 0.99% from 0.78%, and provision coverage fell to 62.66% from 80.02%, making credit quality and funding-led scale the key variables to monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹22.16 Cr | +53.12% | +3.98% |
| EBIT | ₹17.69 Cr | N/A | |
| Net profit | ₹5.69 Cr | +89.74% | |
| EPS | ₹2.7 | +76.47% | |
| EBIT margin | 0% |
P&L walk
Revenue increased to ₹2,215.93 lakh, +53.12% YoY and +3.98% QoQ, while PAT rose to ₹569.09 lakh, +89.74% YoY, as impairment expense fell 49.16% YoY; finance costs increased 54.94% YoY and remained the principal funding drag.
Key positives
- Revenue of ₹2,215.93 lakh grew +53.12% YoY, with interest income of ₹2,153.61 lakh up from ₹1,404.57 lakh.
- PAT of ₹569.09 lakh grew +89.74% YoY as impairment expense declined 49.16% YoY to ₹20.84 lakh.
- Net profit margin expanded to 25.68% from 20.73% YoY, a 495bps improvement.
- The company maintained 120%-125% security cover on outstanding NCDs of ₹11,000 lakh, with at least 60% of identified receivables comprising gold loans.
Key concerns
- Finance costs increased 54.94% YoY to ₹1,002.05 lakh, creating a funding-cost sensitivity as borrowings scale.
- GNPA rose to 1.80% from 1.40% YoY and NNPA to 0.99% from 0.78%, while provision coverage declined to 62.66% from 80.02%.
- EPS growth of 76.47% lagged PAT growth of 89.74% as paid-up equity capital increased to ₹2,111.40 lakh from ₹1,956.40 lakh.
- The Board proposed increasing borrowing limits from ₹750 crore to ₹1,500 crore, increasing balance-sheet leverage risk if asset quality does not remain controlled.
Research and educational content only. Not investment advice.