CRISIL AA-/Stable1.10x security coverVehicle finance 98.44%Bullet redemption FY28
AA-/ StableCurrent NCDRating rationale summary
CRISIL assigned AA-/Stable to NCDs, supported by MPG linkages, adequate capital and vehicle-finance experience, offset by asset quality, earnings and geography risks.
Summary points
- AA-/Stable rating assigned.
- AUM grew 12.5% to 3,441 Cr.
- GNPA was 6.96% at FY26.
- CAR stood at 22.04%.
Rating history timeline
FY24 ViewEarlier NCD ratings shown at A+/Stable.
Prior ViewNCDs carried A+/Positive before AA- action.
Bank FacilitiesLong-term facilities reaffirmed at AA-/Stable.
Current NCDCRISIL AA-/Stable assigned to Rs. 200 Cr NCD.
Outlook implications
Stable outlook reflects CRISIL's expectation that MCSL will maintain adequate capitalisation and remain integral to MPG, benefiting from group linkages over the medium term.
Implications for investors
- Investors get a highly rated secured NBFC exposure, but should monitor asset-quality recovery, earnings moderation, gearing and geographic concentration.
Watch for: Asset quality, credit costs, gearing above 7x, MPG rating view and southern-state concentration.Rating Drivers
MPG support and linkages
CAR 22.04%, gearing 5.1x
Experienced vehicle team
GNPA at 6.96% in FY26
PAT moderated to 11 Cr
South exposure at 50%
How this issuer compares to peers
Benchmark yield, balance-sheet strength, and risk indicators against similar issuers to make the credit case easier to validate.