Skip to content

    Manappuram Finance Q1 FY27 earnings call

    MANAPPURAM
    Financial Services·11 Aug 2026
    Management Summary

    Manappuram Finance delivered a strong Q1 FY27, with consolidated AUM growing 57% YoY to ₹69,635 crores and PAT increasing 47% YoY to ₹585 crores. This growth was primarily driven by the gold loan segment, which saw standalone AUM rise 97% YoY and yields improve by 59 basis points. The microfinance business also showed significant profit recovery. The company plans aggressive branch expansion and aims for sustained profitability while managing asset quality in non-gold segments.

    Highlights

    6

    • Consolidated AUM at ₹69,635 crores, up 9% QoQ and 57% YoY.

    • Consolidated PAT at ₹585 crores, up 45% QoQ and 47% YoY.

    • Standalone gold loan AUM at ₹54,655 crores, up 12% QoQ and 97% YoY.

    • Gold loan yield improved by 59 basis points during the quarter.

    • Asirvad Microfinance PAT at ₹21 crores, up 58% QoQ and 108% YoY.

    • Standalone GNPA improved to 1.56% from 1.8% in the prior quarter.

    Concerns

    3

    • Vehicle finance AUM declined 14.3% QoQ and 43% YoY, with GNPA elevated at 13.3%.

    • Standalone borrowing cost increased by 10 basis points in Q1 FY27.

    • Net loss on derecognition of financial instruments of ₹30 crores.

    Key financials

    Single quarter

    09 metrics
    1. 01Consolidated AUM₹69,635 Cr+57.0%YoY
    2. 02Consolidated Revenue₹3,033 Cr+34%YoY
    3. 03Consolidated PAT₹585 Cr+47%YoY
    4. 04Standalone Gold Loan AUM₹54,655 Cr+97%YoY
    5. 05Asirvad AUM₹7,188 Cr+7.2%YoY

    Segment breakdown

    • Gold Loan (Consolidated)₹57,006 Cr79.3%
    • Microfinance (Asirvad)₹7,188 Cr10.0%
    • Vehicle Finance₹2,562 Cr3.6%
    • MSME & Allied₹3,303 Cr4.6%
    • Home Loan₹1,847 Cr2.6%
    Donut· Share of AUM

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Dividend

    ₹1/share (interim)

    Liquidity

    Liquidity disclosed

    Company is well capitalized with a capital adequacy ratio of 21.29%.

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    Gold Loan Yield
    around 18%
    		High
    Profitability
    ROA
    3.5% to 4%
    		High
    Profitability
    ROE
    15% to 18%
    		High
    Profitability
    ROE
    18%
    		High
    Volume
    Gold Loan Growth
    25%-30%
    		High
    Volume
    Microfinance Disbursement
    INR400-500 crores
    		Medium
    Branch Expansion
    New Branches
    500
    		High
    Portfolio Mix
    Microfinance Share of Consolidated AUM
    below 10%
    		High
    Portfolio Mix
    Gold Loan Share of Consolidated AUM
    75%-80%
    		High

    What to watch in Q2 FY27

    5

    Branch Expansion Progress

    Q2 FY27 onwards
    Current10 branches added in Q1 FY27
    TargetIncreased pace of branch openings towards 500 target

    Why it matters

    Branch expansion is a key driver for gold loan growth and market penetration.

    During the initial months, it will be low, but it will pick up. It is steadily picking up. You will see a good improvement during the second quarter. We are confident of reaching that target of 500 branches.

    Risks & concerns

    4
    RiskSeverity

    Industry-wide stress in microfinance

    Microfinance companies have witnessed industry-wide stress over the few years, requiring calibrated operations. — Management acknowledged

    medium

    Elevated GNPA in Vehicle Finance

    Vehicle finance GNPA continues to be elevated at 13.3%, leading to a focus on collections and no new disbursements. — Management acknowledged

    high

    Gold Price Volatility Impact on LTV

    LTV movement is largely driven by gold price fluctuations, with a recent drop in gold price affecting LTV. — Management acknowledged

    medium

    Increased Cost of Funds

    Standalone borrowing cost increased by 10 bps in Q1 FY27, with expectations of incremental costs around 8.8-9%. — Management acknowledged

    medium

    Q&A highlights

    8

    “For income generating assets, we go up to 85%, this is the maximum, 85%. These are EMI products or the IGA products. Here, even though we have the gold collateral with us, most stress is given to assess this cash flow.”

    Clarifies the company's approach to new RBI guidelines, particularly for income-generating gold loans, and the higher LTVs possible with cash flow assessment.

    asked by Shreepal Doshi

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview and Growth Drivers

    Manappuram Finance reported a robust Q1 FY27, with consolidated AUM reaching ₹69,635 crores, marking a 57% year-on-year and 9% quarter-on-quarter growth. Consolidated revenue from operations stood at ₹3,033 crores, up 34% YoY and 16% QoQ, while Profit After Tax (PAT) increased by 47% YoY and 45% QoQ to ₹585 crores. The gold loan business remained the primary growth engine, contributing 82% of the consolidated AUM, up from 80% in the prior quarter. The company emphasized a disciplined approach to risk management across all businesses.

    02

    Gold Loan Business: Yield Improvement and Strategic Focus

    The standalone gold loan AUM grew significantly by 97% year-on-year and 12% quarter-on-quarter, reaching ₹54,655 crores. A key highlight was the 59 basis points improvement in gold loan yield during the quarter, attributed to strategic pricing actions. The average gold loan LTV was 65.6%, with online gold loans accounting for a substantial 86% of the total gold loan book. Management guided for gold loan yields to stabilize around 18% and projected a 25-30% growth for FY27, supported by plans to open 500 new branches.

    03

    Microfinance and Diversified Businesses Performance

    Asirvad Microfinance continued its recovery, reporting an AUM of ₹7,188 crores (up 7.2% YoY, 5.8% QoQ) and a PAT of ₹21 crores (up 108% YoY, 58% QoQ). The company aims to contain microfinance at below 10% of consolidated AUM. In contrast, the vehicle finance business saw its AUM decline by 43% YoY and 14.3% QoQ to ₹2,562 crores, with GNPA remaining elevated at 13.3%, leading to a temporary halt in new disbursements. MSME and home loan businesses showed stable AUMs of ₹3,303 crores and ₹1,847 crores respectively, with MSME GNPA improving to 5.9%.

    04

    Capital Position and Shareholder Returns

    Manappuram Finance maintains a strong capital position with a Capital Adequacy Ratio (CAR) of 21.29% and a consolidated net worth of ₹16,552 crores. The book value per share stood at ₹176.20. The Board declared an interim dividend of ₹1 per share for the quarter. The company's borrowing cost increased by 10 basis points in Q1 FY27, with incremental costs expected to be in the 8.8-9% range. Management indicated an opportunity to negotiate better borrowing rates for Asirvad due to its increasing secured gold loan portfolio.

    05

    Strategic Priorities and New Leadership

    The company is strengthening its senior leadership, with Mr. Ashish Singh appointed as MD and CEO, expected to join by January 1, 2027. Strategic priorities include maintaining leadership in gold loans through innovation and digital capabilities, improving performance of diversified businesses through disciplined underwriting, and focusing on technology and governance. The company targets an ROA of 3.5-4% and an ROE of 15-18%, aiming for 18% ROE within three years.

    This is an AI-generated summary of a publicly available earnings call transcript.