MAS Financial Services Ltd

MAS has always believed in a conservative but efficient approach to capital – ensuring that every rupee deployed is backed by strong assets quality and return thresholds. This year, we continued to maintain a Return on Equity (ROE) above 14%

Dear Shareholders,

30 years…My heartfelt gratitude to all the stakeholders as we celebrated 30 years on 25^th May 2025. What started in 1995 with Late Mukeshbhai by my side (ever missed..) with a humble

AUM of 2 Crore is now poised for consistent growth for many decades. The credibility and confidence we have built over the years will remain the pillars of our journey ahead, which will witness large-scale growth on the strong foundation laid.

On behalf of Team MAS, I am pleased to present to you the Annual Report for the financial year 2024-25.

This has been a year of remarkable Progress–bothintermsofperformance metrics and in laying down the building blocks for sustainable growth. At MAS, we continue to be driven by our core vision: to deliver responsible, inclusive financial services to the underserved sections of society. We remain as committed today to this mission as we were when we began this journey nearly three decades ago.

FY2025 marked a new high in our growth trajectory. We achieved a consolidated Profit After Tax (PAT) of over 300 Crore and closed the year with Assets Under Management

(AUM) of 12,868 Crore, recording a robust 20% year-on-year growth. Our consistent financial performance across economic cycles continues to validate our strategy of pursuing long-term value over short-term gains. What makes this performance even more meaningful is the quality and stability with which it was delivered – backed by strong underwriting, disciplined execution, and a prudent approach to capital deployment.

We raised 500 Crore capital through

QIP in June 2024 to augment the capital base and fuel next phase of growth of the company. The QIP was the first equity raise by the company since its IPO in the year 2017 and garnered a strong response from a diverse group of marquee institutional investors. This infusion significantly strengthened our balance sheet and gave us the headroom to pursue calibrated growth across business verticals. Our borrowing mix remained healthy and strategically aligned with our ALM profile, and we maintained a capital adequacy ratio of over 24%, positioning us well for the next phase of expansion. We will focus on further diversifying our borrowing mix gradually over the years.

MAS has always believed in a conservative but efficient approach to capital - ensuring that every rupee deployed is backed by strong assets quality and return thresholds. This year, we continued to maintain a Return on Equity (ROE) above 14% (FY2025 was first full year of operations with enhanced capital base) and Return on Assets (ROA) in the range of 3%, balancing quality of assets, profitability and growth.

The MSME segment remained at the heart of our lending strategy and constituted nearly 77% of our AUM as on 31^st March 2025. Despite prevailing stress in certain pockets of the sector, particularly in unorganised supply chains, we stayed consistent in our support to these enterprises through well-structured, purpose-driven credit. We grew our MSME AUM by over 14% while maintaining stable asset quality, thanks to our stringent credit assessment framework and localised underwriting practices.

The wheels portfolio – which includes Two-Wheeler Loans and Commercial Vehicle Loans – delivered strong growth momentum, supported by distribution expansion and a sharper focus on customer segment targeting. Two-wheeler loans, in particular, showed encouraging trends in semi-urban and rural areas, benefiting from improved disposable income and a shift towards personal mobility. Our Salaried Personal Loans segment, launched only in FY2023, scaled well this year with a near-doubling of AUM. This reflects both the latent demand in this space and our ability to quickly adapt and scale up new verticals without compromising on credit discipline.

Our housing finance subsidiary, MAS Rural Housing & Mortgage Finance Limited (MRHMFL), closed the year with strong growth of 25%+ in AUM and profitability, further diversifying our portfolio mix. The affordable housing finance opportunity in India remains vast, and MRHMFL will play an increasingly important role in our long-term strategy.

FY2025 was a significant year in terms of digital transformation. We implemented a new, BRE-enabled Loan Origination System across most product verticals. This has enabled faster turnaround times, improved credit decisioning, and better integration between our core lending engine and customer-facing platforms. Importantly, our in-house technology team continues to drive agility, allowing us to customise solutions based on partner needs, product category, or geography.

We view technology not merely as an enabler, but as a core part of our growth strategy. Whether it is through process automation, advanced analytics, or mobile-first on-boarding, our objective is clear: to make credit delivery faster, smarter, and more inclusive – without losing the personal connect that MAS is known for.

We ended the year with 204 branches and coverage across more than 14,000 pin codes. Our diversified distribution model – balancing direct retail origination with partnerships through NBFCs and intermediaries – has proven to be both scalable and resilient. We now have 200 strategic NBFC partners, and more than 600 intermediaries across our two-wheeler and commercial vehicle verticals. These partnerships are not just transactional – they are built on shared goals, mutual accountability, and an aligned vision to serve customers who are still outside the purview of formal finance.

Our commitment to prudent risk management is unwavering. We follow a conservative provisioning policy, regularly stress-test our books, and maintain tight control over delinquencies. As of FY2025-end, our Net NPA stood at 1.62%, with robust risk management practices across product lines. From a governance standpoint, we continue to follow best practices and maintain transparency in all our operations. Our Audit Committee and Board play an active role in overseeing compliance, risk, and long-term planning.

At MAS, we continue to invest in our people. We believe that a culture rooted in ownership, responsibility, and integrity is what enables sustainable success. This year, our employee strength crossed a milestone of 4,000 employees. and we continue to focus on upskilling, talent development, and performance-linked rewards.

The senior leadership team at MAS has an average association of more than a decade, and we take pride in the institutional knowledge, stability, and agility that this brings to the business. The company is grateful to have a senior leadership team that has been with us for over a decade — true pillars of our organisation.

As we look ahead to FY2026 and beyond, we do so with cautious optimism. While macroeconomic conditions remain fluid and certain sectors may face short-term pressure, the long-term India opportunity remains intact. Rising income levels, formalisation of credit, and supportive policy tailwinds will continue to drive demand for retail and enterprise credit. Statutory Reports Our medium-term aspiration is to grow our AUM by 20% to 25% resulting in doubling of it in every 3 to 3.5 years. More importantly, we aim to achieve this while maintaining asset quality, capital efficiency, and stakeholder trust. We will continue to invest in digital capabilities, and expand in select geographies where we see meaningful demand and long-term value. Financial Statements

In closing, I would like to express my sincere gratitude to each of our stakeholders – customers, employees, investors, partners, regulators, and the Board – for your continued trust and support. FY2025 has been a testament to what MAS can achieve through discipline, foresight, and a collective sense of purpose.

We remain committed to creating long-term, inclusive value for all our stakeholders, and we look forward to your continued support in the journey ahead.

Team MAS remains committed to its mission of "Excellence through endeavours", which we now reckon as

Warm regards,