At a Glance
Master Trust Ltd, the not-so-secret spice mix of stockbroking, lending, and securities, reported Q1 FY26 PAT at ₹27 Cr (-21.7% YoY) and revenue ₹132 Cr (-17.9% YoY). Despite a 5-year profit CAGR of 60.5%, the latest quarter shows the party is losing beats. Promoter holding dipped to 69.2%, while the company eyes expansion via a mutual fund AMC launch. Investors? Nervous but watching.
1. Introduction
Master Trust started as a broker, then decided to do everything finance. Merchant banking? Check. Depository participant? Check. Insurance broking? Of course. But Q1 FY26 was like watching a cricket team collapse after hitting a century last year—numbers look dented, and market share is under pressure from big boys like Angel One and Motilal Oswal.
2. Business Model (WTF Do They Even Do?)
- Stockbroking & Allied Services: Core revenue from brokerage and trading services.
- Lending & Securities: Plays the NBFC card with a non-deposit-taking license.
- Merchant Banking & Insurance: Multiple verticals, multiple licenses, multiple headaches.
Sarcasm Alert: They sell everything but the kitchen sink. Next up—Master Trust branded crypto?
3. Financials Overview
Q1 FY26 Highlights
- Revenue: ₹132 Cr (-17.9% YoY)
- EBITDA: ₹52 Cr (-2% YoY)
- PAT: ₹27 Cr (-21.8% YoY)
- EPS: ₹2.41
Comment: Revenue slowdown bites, but margins still impressive with OPM at 39%.
4. Valuation
- P/E: 15.2x – modest compared to peers.
- P/B: 2.9x – slightly rich for a small-cap.
- Fair Value Range: ₹150 – ₹175.
Investor Joke: At 15x earnings, you’re not overpaying, but don’t expect fireworks.
5. What’s Cooking – News, Triggers, Drama
- Applied to SEBI for a Mutual Fund license – if approved, could open a new revenue stream.
- Won an ET Now award – great for PR, not necessarily profits.
- Promoter stake dropped 3.26% QoQ—raising eyebrows.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 1,785 | 1,953 |
| Borrowings | 187 | 258 |
| Net Worth | 504 | 638 |
Auditor-Style Remark: Net worth grows, but debt is climbing like your EMIs during rate hikes.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash | 177 | 458 | -37 |
| Investing Cash | -164 | -493 | 54 |
| Financing Cash | 0 | 25 | 18 |
Remark: FY25 had negative ops cash—ouch! At least financing inflow saved the day.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 25% | 27% | 23% |
| ROCE | 29% | 33% | 30% |
| OPM | 35% | 41% | 42% |
| D/E | 0.3x | 0.35x | 0.4x |
Verdict: Margins sexy, debt creeping—keep your stop-loss handy.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 339 | 500 | 584 |
| EBITDA | 120 | 204 | 243 |
| PAT | 66 | 108 | 131 |
Observation: Growth peaked in FY24, FY25 slowed. Q1 FY26? Weak start.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Motilal Oswal | 20.2 | 25.3% | 55.6% |
| Angel One | 24.0 | 27.1% | 35.9% |
| Share India Sec. | 12.0 | 16.1% | 35.7% |
| Master Trust | 15.2 | 23.0% | 42.0% |
Comment: A strong mid-tier player, but still under the shadow of market giants.
11. Miscellaneous – Shareholding
- Promoters: 69.2% (falling trend)
- FIIs: 0.15% (negligible)
- Public: 30.6%
Sarcasm: FIIs are treating this like that stock you promise to buy but never do.
12. EduInvesting Verdict™
Master Trust is a nimble player in the broking/NBFC space with enviable margins and ROE. However, the Q1 FY26 profit drop, declining promoter stake, and rising debtor days are red flags. The mutual fund venture could be a game-changer if executed well.
SWOT
- Strengths: High ROCE, diversified licenses, strong brand in tier-2/3 cities.
- Weaknesses: High debtor days, weak cash flows, promoter selling.
- Opportunities: Mutual fund AMC, fintech integrations.
- Threats: Aggressive competition, regulatory risks.
Final Word: The “Master” is skilled, but needs to sharpen its moves. For now, investors may need patience as the company transitions into a bigger league.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Master Trust Q1 FY26, Brokerage, NBFC, Mutual Fund License, Financial Services
