1. At a Glance
Welcome to the glamorous world ofMangal Credit & Fincorp Ltd (MCFL)— the NBFC that’s been mixinggold, SME dreams, and a pinch of digital razzmatazzsince 2012. With amarket cap of ₹365 crore, the company’s current share price of₹172might look modest compared to the big NBFC elephants, but it packs some spicy financial seasoning.
In the latestQ2 FY26results, MCFL clockedsales of ₹15.82 crore, marking a35.7% YoY growth, but a7.45% dip in profitto ₹2.98 crore — a bit of a “two steps forward, one stumble back” situation. Yet, itsoperating profit margin of 74.6%would make most manufacturing CEOs cry in envy.
With aP/E of 29.7,ROCE at 12.2%, andROE at 9.93%, the company’s balance sheet is leaner, its digital muscles are bulking up, and promoters — who’ve inched up their stake to55.25%— seem to know the gold standard formula for surviving NBFC volatility. But as we’ll see, the real story lies in how MCFL manages itsgold-backed ambitions,tech transformation, and a touch ofCFO musical chairs.
2. Introduction
If Indian NBFCs were a Bollywood family drama,Mangal Credit & Fincorpwould be that underdog cousin — small-town charm, flashy dreams, and just enough stability to keep the audience invested. Incorporated in 2012, MCFL has slowly built its identity by catering to borrowers who can’t spell “credit score” but know the value of a gold chain.
FromBadlapur to Panvel, it’s been expanding its branch network like a desi startup going “phygital.” The latest expansion spree, withnew branches in Maharashtra and Gujarat, and ambitions forOdisha and West Bengal, suggests that Mangal isn’t content playing the local lender anymore.
However, beneath this expansion glitter lies an evolving balance sheet — one that’sincreasingly secured,moderately leveraged (Debt-to-Equity: 1.75), and experimenting with tech collaborations. WithNelito Systems and Razorpayin its digital toolkit, MCFL seems to be preparing for an AI-era makeover. The only hitch? A bit of musical chairs in management, as CEOs and CFOs swap seats faster than Bollywood producers switch scripts.
Still, MCFL’s resilience and steady margins show a company balancing small-town roots with big-city aspirations. But can they convert this “gold loan + SME loan” cocktail into sustainable growth?
3. Business Model – WTF Do They Even Do?
In short —they lend money, but with style and some solid collateral.
MCFLoperates as aNon-Systematically Important Non-Deposit Taking NBFC— basically, a regulated lender that doesn’t accept public deposits but loves secured lending. It has6 branches in Maharashtraand2 in Gujarat, and each of those branches is like a mini money bazaar.
Here’s what they sell:
- Gold Loans:The crown jewel. Fast, low-documentation loans against gold jewellery. Think of it as India’s favorite emergency ATM.
- SME Loans:Targeted at small businesses needing capital for working capital, machinery, or expansion. Ticket size? Starts from ₹20 lakh — serious but not corporate-level.
- Loan Against Property:The “grown-up” version of borrowing — mortgage-based and relatively safer.
- Personal Loans:Smaller amounts (from ₹50,000 upward) for those who just want quick liquidity with minimal drama.
TheirAUMis tilted49% towards business loans,25% towards gold,24% to LAP, and a token2% to personal loans— which basically means half of their book earns interest off real gold and small business hustle.
They’re also digitally reinventing themselves — working withNelito (Japan’s DTS subsidiary)for end-to-end loan origination systems, integratingDigio, NSDL, Razorpay, and others to automate verifications. In desi
terms: “Mangal Credit is becoming less Mangal Babu with registers, more fintech with tablets.”
4. Financials Overview
Let’s dive into theQ2 FY26numbers — the real goldmine.
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 15.82 | 11.66 | 14.47 | 35.7% | 9.3% |
| EBITDA (₹ Cr) | 11.49 | 9.00 | 10.82 | 27.6% | 6.2% |
| PAT (₹ Cr) | 2.98 | 3.22 | 3.00 | -7.5% | -0.7% |
| EPS (₹) | 1.41 | 1.65 | 1.53 | -14.5% | -7.8% |
Annualised EPS = ₹1.41 × 4 = ₹5.64, giving aP/E ratio = ₹172 / ₹5.64 = 30.5×, roughly matching screener’s 29.7x.
Commentary:Revenue is sprinting like Usain Bolt on caffeine, but PAT tripped over interest costs. Margins remain elite — a whopping74.6% OPM— but withinterest coverage at just 1.73×, there’s pressure on the lending spread. Still, for a small NBFC, maintaining 70%+ OPM is like getting 95% attendance — rare and admirable.
5. Valuation Discussion – Fair Value Range Only
Let’s play valuation math the Edu way.
(a) P/E Method:EPS (Annualised): ₹5.64Industry P/E: 21.5Fair P/E Range: 20–28
→Fair Value = ₹5.64 × 20 = ₹112.8 to ₹5.64 × 28 = ₹158.0
(b) EV/EBITDA Method:EV = ₹564 Cr; EBITDA = ₹42 Cr (TTM)EV/EBITDA = 13.4× (as per data)Industry average ~11–15× → MCFL trades within band.
Fair Range = ₹470–₹590 Cr EV → Implied Share Price Range = ₹140–₹175.
(c) DCF (simplified):Assuming FCF growth 10%, discount rate 12%, FCF/Share ~₹6.→ Fair value = ₹6 × (1.10)/(0.12−0.10) = ₹330, discounted to half (for NBFC risk) = ₹165.
📉 Fair Value Range (Educational Only): ₹140–₹170 per share.
Disclaimer: This range is for educational analysis only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
November 2025 was eventful for MCFL. TheBoard approved Q2 FY26 results, and also rolled outnew NCD issuances worth ₹25 crore. Within a month, they allotted1,000 NCDs worth ₹10 croreat12.9% coupon,
