Manappuram Finance reported robust Q-o-Q growth in consolidated AUM, primarily driven by its gold loan segment. While consolidated PAT saw sequential growth, it declined year-on-year, and non-gold portfolios continued to face asset quality challenges. The company is implementing strategic initiatives, including digital transformation and a focus on improving standalone ROA to 4.25-4.5% by H2 FY27, with the Bain Capital investment approval expected within one month.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Consolidated AUM | ₹52K Cr | +17.9% YoY |
| Consolidated Gold Loan AUM | ₹39K Cr | +58.2% YoY |
| Consolidated PAT | ₹239 Cr | -14.3% YoY |
| Standalone AUM | ₹44K Cr | +36.3% YoY |
| Standalone PAT | ₹381 Cr | -15.9% YoY |
| Asirvad AUM | ₹6.1K Cr | -39.2% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Consolidated AUM(crores) | 63798 | |
| Consolidated PAT(crores) | 239 | |
| Standalone GNPA | 2.77% | |
| Standalone PAT(crores) | 381 | |
| CRAR | 28% | |
| Book Value per Share(Rs) | 170.9 |
| Category | Headline | |
|---|---|---|
Dividend | ₹0.5/share (interim) | |
M&A | Bain Capital Investment acquisition · pending regulatory | |
Liquidity | Liquidity disclosed Liquidity buffers increased from INR1,500-2,000 crores to INR4,000 crores at quarter end. Balance sheet is robust with capital adequacy above regulatory thresholds and ample liquidity. Funding diversification remains a priority. |
| Category | Target | Priority |
|---|---|---|
| Profitability | Standalone ROA→4.25% to 4.5% | High |
| Portfolio Composition | Asirvad New Book Share→57% to 60% | High |
| Portfolio Growth | Asirvad Degrowth→Positive territory | High |
| Yields | Gold Loan Yield→18% to 18.15% | High |
| Business Growth | Non-gold businesses growth mode→Growth mode | Medium |
| Regulatory Approval | Bain Capital Investment Approval→Final approval | High |
| Strategic Initiatives | Co-lending partners live→Minimum 3 partners | High |
| Digital Transformation | Customer acquisition processes paperless→Most processes paperless | Medium |
| # | Metric | |
|---|---|---|
| 01 | Bain Capital investment final approval | |
| 02 | Non-gold businesses return to growth mode | |
| 03 | Asirvad Microfinance new book share and collection efficiency | |
| 04 | Standalone ROA improvement | |
| 05 | Gold loan branch transformation and digital adoption |
| Severity | Risk |
|---|---|
medium | Elevated NPAs in non-gold portfolios Housing finance 5%, vehicle 14%, MSME 6%. Management has scaled down these businesses and is strengthening processes, but MSME recovery will take more time. Analyst |
low | Gold price volatility impacting AUM While short-term corrections (3-4 months) are possible, LTVs remain stable (57-60%), and the online gold loan app helps manage risks. Analyst |
medium | Regulatory approval for Bain Capital investment Final approval from RBI is pending, expected within one month. RBI's concerns regarding Bain's potential majority stake in two NBFCs are being addressed. Analyst |
Manappuram Finance Limited reported a consolidated AUM of INR52,125 crores for Q3 FY26, marking a robust 13.8% Q-o-Q and 17.9% Y-o-Y increase. The gold loan segment was the primary growth driver, with its AUM surging 23% Q-o-Q and 58.2% Y-o-Y to INR38,754 crores. Consolidated PAT for the quarter stood at INR239 crores, showing a 9.8% Q-o-Q growth but a 14.3% Y-o-Y decline. Standalone PAT was INR381 crores, down 15.9% Y-o-Y.
The company's gold loan AUM growth is attributed to a strategic shift towards higher-ticket, lower-yield customers, which led to a 22% AUM increase despite a less significant rise in customer count. Management expects gold loan yields to stabilize around 18-18.15% from next year, leveraging its online gold loan (OGL) app for efficient repayments and LTV management. The gold loan business is positioned as a core growth engine, with industry-wide AUM projected to scale sharply over the next two financial years.
Non-gold segments, including vehicle finance, MSME, and housing finance, continue to grapple with elevated NPA levels, with housing at 5%, vehicle at 14%, and MSME at 6%. In response, the company has scaled down these businesses, tightened underwriting norms, and is enhancing collection infrastructure and LOS platforms. Management anticipates a return to growth mode for these segments from Q1 FY27, following the strengthening of systems, processes, and controls.
Asirvad Microfinance reported a loss of INR156 crores in Q3 FY26, an improvement of 6.9% sequentially from INR168 crores in Q2 FY26. Its AUM stood at INR6,091 crores, experiencing a 1.2% Q-o-Q and 39.2% Y-o-Y decline. The new book, which constitutes approximately one-third of the portfolio, demonstrates a strong collection efficiency of 99.78%. Management expects two-thirds of the total portfolio to achieve similar collection efficiencies within the next two quarters, signaling a positive trajectory for the subsidiary.
Manappuram is actively pursuing significant strategic initiatives, including a comprehensive transformation of its branch infrastructure with new designs slated for next year. The company aims to make most customer acquisition processes paperless within the next 1-2 quarters and is implementing new AI security systems from this month. Additionally, it has gone live with co-lending, with a minimum of three partners expected to be operational within the next 2-3 weeks, and is developing a new technology stack over 2-3 years.
The company maintains a robust balance sheet with capital adequacy comfortably above regulatory thresholds and ample liquidity, which increased to INR4,000 crores at quarter-end. An interim dividend of INR0.50 per share was declared for the quarter. The final regulatory approval for Bain Capital's 18% primary equity investment (9% initially, 9% via convertible warrants) is expected within one month, which will establish Bain as a joint promoter alongside existing promoters who will retain over 28% stake.