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    Manappuram Fin.

    MANAPPURAM
    Financial Services·4 May 2026
    Management Summary

    Manappuram Finance delivered a strong Q4 FY26 performance, primarily driven by robust growth in its core gold loan business and a significant turnaround in the microfinance segment's profitability. While consolidated AUM and Q4 PAT showed strong sequential and year-on-year growth, full-year PAT declined. The company is focusing on asset quality improvements in non-gold portfolios and strategic leadership strengthening to drive sustainable growth and achieve targeted ROE.

    Highlights

    5

    • Consolidated AUM reached INR63,798 crores, up 22.4% sequentially and 48.3% year-on-year, driven by gold loan growth.

    • Gold loan AUM stood at INR50,953 crores, registering 31.5% quarter-on-quarter and 99.1% year-on-year.

    • Asirvad Microfinance reported a profit of INR13 crores in Q4 FY26, a significant turnaround from a loss of INR156 crores in Q3 FY26, supported by improved collection efficiencies and write-backs.

    • Consolidated PAT for Q4 FY26 was INR405 crores, reflecting an almost 70% quarter-on-quarter increase.

    • Standalone GNPA improved to 1.81% as on March 31, 2026, down from 2.61% in the previous quarter, and standalone borrowing cost decreased by 17 bps in Q4 FY26.

    Concerns

    5

    • Full Year FY26 Consolidated PAT was INR993 crores, down 17.5% year-on-year.

    • Standalone PAT for Q4 FY26 was INR376 crores, marginally down 1.5% sequentially and 9.4% year-on-year, impacted by a one-time write-off of INR84 crores on vehicle loans.

    • Vehicle Finance AUM declined by 16.8% quarter-on-quarter and 37.3% year-on-year to INR2,991 crores.

    • MSME and allied businesses saw their GNPA increase to 7.1% from 6.1% in the earlier quarter.

    • Consolidated Provision Coverage Ratio remained relatively low at 27.34%.

    Key financials

    Metrics

    8

    Periods

    3

    Headline

    6
    • Consolidated AUM
      ₹63,798 Cr
      YoY+48.3%QoQ+22.4%
    • Consolidated Revenue
      ₹2,614 Cr
      YoY+10.7%QoQ+11%
    • Consolidated GNPA
      2.1%
    • Provision Coverage Ratio
      27.3%
    • Capital Adequacy
      21.3%

    Q4

    1
    • Consolidated PAT
      ₹405 Cr
      QoQ+70%

    FY26

    1
    • Consolidated PAT
      ₹993 Cr
      YoY-17.5%

    Segment breakdown

    AUMGNPA
    Gold Loan₹50,953 Cr—
    Standalone (MAFIL)₹55,952 Cr1.8%
    Asirvad Microfinance₹6,794 Cr4.8%
    Vehicle Finance₹2,991 Cr10.4%
    MSME and Allied Businesses—7.1%
    Home Loan——
    Heatmap· 2 shared metrics

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Dividend

    ₹0.5/share (interim)

    Liquidity

    Liquidity disclosed

    Strong capital position with capital adequacy at 21.3%, well above regulatory requirements, and diversified funding sources across banks, capital markets and securitization. The company maintains a conservative positioning stance and closely monitors early warning indications across businesses.

    Guidance & targets

    8
    CategoryTargetPriority
    Profitability
    Consolidated ROE
    over 15%
    		High
    Profitability
    Consolidated ROE
    13-16%
    		Medium
    Margin
    NIM / Yield
    17.5%-18%
    		High
    Volume
    Gold Loan Volume Growth
    more than last year
    		Medium
    Capacity
    Gold Loan Branch Expansion
    500-550 branches
    		High
    Collection Efficiency
    Asirvad Collection Efficiency
    75% overall, above 99% with guardrails
    		Medium
    AUM
    Overall Consolidated AUM Growth
    reasonably good level, more volume than current year
    		Medium
    Credit Cost
    Cost of Credit
    improvement
    		Medium

    Asirvad Microfinance AUM Growth & Asset Quality

    next quarter
    CurrentAUM INR6,794 crores (up 11.9% QoQ), GNPA 4.85%, Net NPA 1.6%, New book collection efficiency 99.83%.
    TargetContinued AUM growth, sustained profitability, and further improvement in asset quality.

    Why it matters

    Asirvad's turnaround and sustained profitability are key to consolidated performance, especially given its past challenges and the management's focus on stabilization.

    Asirvad Microfinance continue to operate in a cautious environment during Q4 FY '26. The strategic actions we initiated over the past few quarters, including tighter underwriting, calibrated disbursements, strengthened collections and geographical optimization are beginning to yield gradual improvements. We expect the business to stabilize progressively with a sharper focus on sustainable growth and improved risk-adjusted returns.

    How to verify

    key_financials.segment_breakdown[name='Asirvad Microfinance'].metrics[label='AUM']

    Risks & concerns

    4
    RiskSeverity

    Macroeconomic headwinds (geopolitical tensions, inflation, interest rates, weakening rupee)

    The operating environment is tempered by geopolitical tensions, inflationary tendencies, firming interest rates, and a weakening rupee. — Management acknowledged

    medium

    Competitive lending landscape

    The lending landscape remained competitive, requiring a sustained focus on asset quality and prudent underwriting standards. — Management acknowledged

    medium

    Challenges in unsecured segments, particularly microfinance

    The microfinance segment is still in a recovery phase, requiring a cautious stance and calibrated expansion. — Management acknowledged

    medium

    Stress in certain non-gold portfolios (Vehicle Finance, MSME)

    These segments witnessed moderation in portfolio levels and an increase in GNPA in MSME, necessitating tightened underwriting and strengthened collections. — Management acknowledged

    medium

    Q&A highlights

    8

    “majority of it is from non-gold only. In that, if you see the notes to accounts almost INR136 crores is the write-off of the vehicle finance book. So that has elevated the bad debts in this quarter. ... INR84 crores is net of provision.”

    Clarifies the significant impact of non-gold portfolio stress, particularly vehicle finance, on overall provisions and PAT, with a specific figure for the write-off.

    asked by Piran Engineer (CLSA)

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Gold Loan Growth Fuels Consolidated AUM Expansion

    Manappuram Finance reported a strong Q4 FY26, with consolidated AUM reaching INR63,798 crores, marking a 22.4% sequential and 48.3% year-on-year increase. This growth was predominantly driven by the gold loan segment, which saw its AUM surge to INR50,953 crores, up 31.5% quarter-on-quarter and 99.1% year-on-year. The gold loan business now constitutes 80% of the consolidated AUM, benefiting from supportive gold prices and strong customer demand, with management planning to open 500-550 new branches in FY27.

    02

    Asirvad Microfinance Returns to Profitability with Improved Asset Quality

    The Asirvad Microfinance segment demonstrated a significant turnaround, reporting a profit of INR13 crores in Q4 FY26, a substantial improvement from a loss of INR156 crores in Q3 FY26. This was attributed to enhanced collection efficiencies, growth in the loan book, and a write-back of INR96 crores (post-tax) from MTM credits and improved performance of the new loan pool. Asirvad's AUM grew 11.9% sequentially to INR6,794 crores, with the new book (59% of portfolio) showing an ex-bucket collection efficiency of 99.83%.

    03

    Mixed Performance and Corrective Actions in Non-Gold Portfolios

    While gold loans performed strongly, non-gold segments presented mixed trends. The vehicle finance business experienced a decline in AUM by 16.8% QoQ and 37.3% YoY to INR2,991 crores, with a one-time📎 write-off of INR84 crores impacting standalone PAT. The MSME and allied businesses saw their GNPA increase to 7.1% from 6.1% in the prior quarter. Management is actively implementing tightened underwriting standards, intensified recovery efforts, and digital collection strategies to moderate slippages and improve asset quality in these stressed segments.

    04

    Strong Profitability and Capital Adequacy Maintained

    Consolidated revenue for Q4 FY26 stood at INR2,614 crores, reflecting 10.7% YoY and 11% QoQ growth, leading to a PAT of INR405 crores, up nearly 70% sequentially. Despite a 17.5% YoY decline in full-year PAT to INR993 crores, the company maintains a healthy balance sheet with a capital adequacy ratio of 21.3% and a consolidated net worth of INR16,051 crores. Management expects NIMs to stabilize between 17.5%-18% and aims for a consolidated ROE of over 15%, or 13-16% in the next 1-2 years, driven by operational efficiencies and gold loan growth.

    05

    Strategic Focus on Digitalization and Leadership Strengthening

    Manappuram Finance is actively investing in digital capabilities, analytics, and process efficiencies to enhance customer experience and drive productivity across its branch network. The company also announced several key leadership appointments at the group level and for its subsidiaries, including a new Group CFO, Group CCO, Group Legal Counsel, COO, and new CEOs for Asirvad Microfinance and Manappuram Home Finance. These strategic hires are expected to bolster execution capabilities and support the company's diversified growth strategy and focus on risk-adjusted returns.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.