Mangal Credit Q2 FY27 Results (NSE: MANCREDIT)
Signal: Earnings grew
The read
The trajectory remains growth-positive but funding-sensitive: Q2 revenue was ₹2,124.68 lakh, up 34.1% YoY but down 4.1% QoQ, while PAT rose 35.8% YoY to ₹406.73 lakh but fell 28.5% sequentially; the key watchpoint is finance costs up 50.1% YoY and operating cash outflow of ₹3,963.76 lakh as loans expanded.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹21.25 Cr | +34.1% | -4.1% |
| Net profit | ₹4.07 Cr | +35.8% | |
| EPS | ₹1.93 | +30.4% | |
| EBIT margin | 0% |
P&L walk
Standalone revenue grew 34.1% YoY to ₹2,124.68 lakh, but fell 4.1% QoQ; PAT rose 35.8% YoY to ₹406.73 lakh as revenue growth outpaced finance-cost growth modestly, while impairment increased 127.6% QoQ and sequential PAT declined 28.5%.
Key positives
- Revenue reached ₹2,124.68 lakh, up 34.1% YoY, with interest income up 36.2% YoY to ₹2,077.78 lakh.
- PAT increased 35.8% YoY to ₹406.73 lakh and net profit margin improved to 19.14% from 18.90% a year ago.
- Employee costs rose 12.9% YoY to ₹256.86 lakh, substantially slower than revenue growth of 34.1%, providing operating cost support.
- The company issued 3,500 secured NCDs aggregating ₹35 crore during the quarter and reported security cover of 105%-125%.
Key concerns
- Finance costs rose 50.1% YoY to ₹1,081.24 lakh, faster than revenue growth of 34.1%, increasing sensitivity to funding costs.
- Operating cash flow was negative at ₹3,963.76 lakh in H1FY27 versus negative ₹3,540.62 lakh in H1FY26, primarily because ₹5,496.42 lakh was deployed into loans.
- GNPA increased to 1.61% from 1.27% YoY and NNPA to 0.93% from 0.69%, while provision coverage declined to 68.32% from 86.69% YoY.
- Q2 revenue declined 4.1% QoQ and PAT declined 28.5% QoQ, with impairment rising 127.6% sequentially to ₹47.44 lakh.
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