Midland Microfin Limited (Midland Microfin) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Midland Microfin Limited

Midland Microfin Limited Standalone Balance Sheet (Rs. in Crores)

Particulars	31-03-2025	31-03-2024
Non-current assets
Deferred tax assets	15.62	7.79
Property plant and equipment	15.44	15.08
Intangible assets under development	-	0.67
Other intangible assets	2.64	1.30
Other non financial assets	8.38	6.69
Current assets
Cash and cash equivalent	177.45	212.08
Bank balances other than cash and equivalent	198.66	237.07
Derivative financial instrument	5.63	3.42
Receivable	0.88	3.63
Other receivables	3.50	1.73
Loans	2,135.70	2,027.49
Investment	157.16	51.66
Other financial assets	27.93	52.97
Total assets	2,748.81	2,621.59
Equity
Equity share capital	52.37	47.61
Instrument entirely equity in nature	45.77	43.47
Other equity	521.03	396.78
Non-Current liabilities
Current tax liabilities	1.03	7.53
Provisions	3.62	3.13
Other non financial liabilities	5.59	4.49
Current liabilities
Trade payables – outstanding dues of micro and small enterprises	0.80	1.37
Trade payables – outstanding dues other than above	1.04	2.15
Debt securities	433.54	187.41
Borrowing	1,526.14	1,658.20
Subordinated liabilities	122.82	137.15
Other financial liabilities	35.05	132.29
Total equity and liabilities	2,748.81	2,621.59

Midland Microfin Limited Standalone Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	635.71	530.87
Other Income	0.74	1.89
Total Income	636.45	532.76
Expenses
Finance costs	272.18	204.37
Net loss on fair value changes	15.74	17.22
Impairment on financial instrument	117.88	50.75
Employee benefit expense	127.86	105.95
Depreciation & amortization expense	4.56	3.80
Other Expenses	65.57	56.65
Total Expenses	603.79	438.75
Profit/(loss) before tax	32.66	94.01
Current Tax expenses	12.01	28.74
Tax expense from earlier years	0.11	-
Deferred tax expense	-6.14	-6.88
Profit/ Loss after tax	26.67	72.16
Other comprehensive income for the year
Other items that will not be reclassified to P/L account
Gain/(Loss) on Remeasurement on defined benefit plans	0.52	0.32
Income tax relating to above	-0.13	-0.10
Items that will be classified to profit/loss
Fair value income/loss on derivative financial instrument	-7.24	0.43
Income tax effect	1.82	-0.11
Total comprehensive income for the year	21.65	72.71
Earning per share
Basic	5.56	16.45
Diluted	5.10	15.53

Midland Microfin Limited Standalone Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	32.66	94.01
Adjustment for -:
Depreciation and amortisation	4.56	3.80
Provision for employee benefit	1.08	1.08
Net loss on fair value changes	15.74	17.22
Impairment of financial instrument	-4.30	43.53
Net gain on derecognition of financial instrument under amortised cost category	28.55	-14.95
Profit on sale of mutual funds units	-0.11	-0.11
Other provisions and write offs	0.32	0.23
Adjustment towards effective interest rate towards loan portfolio	0.58	3.83
Adjustment towards effective interest rate towards borrowing, debt securities and subordinated liabilities	0.43	3.88
Interest expense on lease liabilities	0.19	0.29
Adjustment for change in working capital
Payables	-1.68	-3.79
Other financial liabilities	-96.54	67.38
Non financial liabilities	1.09	2.10
Receivables	0.96	-2.78
Loan portfolio	-104.96	-546.00
Other financial assets	-3.33	-14.25
Other non financial assets	-1.69	-1.89
Cashflow generated from operations	-126.45	-346.42
Income tax paid	-18.63	-15.84
Net Cash from/(used in) Operating Activities	-145.08	-362.27
Cash Flow from Investing Activities
Purchase of PPE	-4.27	-6.29
Purchase of intangible assets and intangible assets under development	-0.99	-1.23
Bank balance other than cash and cash equivalent	38.40	-34.40
Purchase of investment	-286.74	-221.80
Sale of investment	165.61	233.03
Net Cash from / (used in) Investing Activities	-87.99	-30.69
Cash Flow from Financing Activities
Proceeds from issue of partly paid up equity shares	4.76	2.04
Premium on issue of partly paid up equity shares	71.43	30.61
Proceeds from issue of CCCPS	-	8.06
Proceeds from issue of partly paid up CCPS	2.30	1.89
Premium on issue of partly paid CCPS	34.51	28.41
Share issue expense	-0.01	-0.06
Proceeds from issue of debt securities	250.35	-77.18
Proceeds from issue of borrowing	-142.20	485.49
Proceeds from issue of subordinated liabilities	-18.28	6.64
Dividend on equity shares	-3.19	-3.19
Dividend on CCPS	-0.19	-0.19
Payment of lease liabilities	-1.04	-1.06
Net Cash from/(used in) Financing Activities	198.44	481.45
Net Increase/decrease in Cash & cash equivalents	-34.63	88.50
Cash and cash equivalents at the beginning of the year	212.08	123.58
Cash and cash equivalents at the end of the year	177.45	212.08

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company’s operating cash flow reflects continued pressure, although there is noticeable improvement compared to the previous year. Net profit before tax declined sharply from ₹94.01 crore in FY24 to ₹32.66 crore in FY25, indicating weakening core profitability. Adjustments show mixed movements, with a significant reduction in impairment losses and higher gains on derecognition of financial instruments supporting earnings to some extent. However, working capital changes remain the key concern, particularly due to the outflow from expansion in the loan portfolio (₹104.96 crore) and a substantial decrease in other financial liabilities (₹96.54 crore). These factors led to negative cash generated from operations of ₹126.45 crore, which is better than the previous year but still reflects operational inefficiency in cash generation. After accounting for taxes, net cash used in operating activities stood at ₹145.08 crore, highlighting that the company continues to rely on external funding rather than internal accruals.

Cash Flow from Investing Activities

The investing activities indicate a more aggressive deployment of funds during FY25. The company made significantly higher investments amounting to ₹286.74 crore compared to the previous year, suggesting a strategic focus on expanding its financial asset base. Although inflows from the sale of investments (₹165.61 crore) and positive changes in bank balances provided some support, they were insufficient to offset the large outflows. Capital expenditure on property, plant, equipment, and intangible assets remained relatively stable and moderate, indicating limited focus on physical expansion. As a result, net cash used in investing activities increased to ₹87.99 crore from ₹30.69 crore in FY24, reflecting higher investment intensity and increased pressure on cash resources in the short term.

Cash Flow from Financing Activities

Financing activities continued to be the primary source of liquidity for the company, generating a net inflow of ₹198.44 crore during FY25, although this was significantly lower than the ₹481.45 crore recorded in the previous year. The company raised funds through equity instruments, including partly paid shares and CCPS premiums, along with substantial proceeds from debt securities. However, there was a notable reduction in borrowings and subordinated liabilities, indicating repayments or restructuring of existing debt obligations. Dividend payments remained consistent, demonstrating the company’s commitment to shareholder returns despite weak operating cash flows. Overall, while financing activities supported liquidity, the reduced inflow compared to FY24 suggests a moderation in external funding support.

Net Increase/decrease in Cash & Cash Equivalents

The overall cash position of the company declined during FY25, with a net decrease of ₹34.63 crore compared to a strong increase of ₹88.50 crore in FY24. This decline was primarily driven by continued negative operating cash flows and higher investing outflows, which were only partially offset by financing inflows. Consequently, cash and cash equivalents at the end of the year stood at ₹177.45 crore, down from ₹212.08 crore at the beginning of the year. Although the company still maintains a reasonable cash balance, the downward trend indicates increasing pressure on liquidity, and sustained negative operating performance could further impact cash reserves if not managed effectively.