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    Manba Finance Q1 FY27 earnings call

    MANBA
    Financial Services·28 Jul 2026
    Management Summary

    Manba Finance Limited delivered a strong Q1 FY27, marked by robust year-on-year growth in NII, PAT, AUM, and disbursements, driven by strategic product diversification and geographical expansion. The company maintained healthy asset quality and capital adequacy, with plans to raise INR100 crores to support further growth. Management is focused on reducing dependency on two-wheeler loans and improving ROA/ROE through higher IRR products and digital initiatives.

    Highlights

    5

    • Net Interest Income (NII) of INR42 crores, registering a significant growth of 36% year-on-year.

    • Profit After Tax (PAT) for the quarter increased by 36% year-on-year to INR13 crores, reflecting healthy profitability.

    • Asset Under Management (AUM) stood at INR1,731 crores as of June 30th, 2026, reflecting a robust year-on-year growth of 22%.

    • Disbursement grew by 37% year-on-year to INR226 crores, reflecting strong demand across core vehicle finance portfolio.

    • Asset quality remained well under control with Gross NPA at 3.41% and Net NPA at 2.52%.

    Concerns

    2

    • Capital Adequacy Ratio declined from 29.81% in FY25 to 24.40% in Q1 FY27, necessitating a capital raise of INR100 crores.

    • Average cost of borrowing slightly increased to 10.86% due to maintaining healthy liquidity.

    Key financials

    Single quarter

    08 metrics
    1. 01Net Interest Income₹42 Cr+36%YoY
    2. 02Profit After Tax₹13 Cr+36%YoY
    3. 03Asset Under Management₹1,731 Cr+22%YoY
    4. 04Disbursement₹226 Cr+37%YoY
    5. 05Gross NPA3.4%

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Dividend

    ₹0.25/share (interim)

    Liquidity

    Liquidity disclosed

    The company maintained a healthy liquidity of around INR350 crores as of March 31, 2026, and kept a liquidity of INR200 crores this quarter. This strategy led to a slight increase in the cost of borrowing.

    Guidance & targets

    10
    CategoryTargetPriority
    AUM Growth
    AUM growth
    35% to 40%
    		High
    Profitability
    ROA
    3.5%
    		High
    Profitability
    Net Interest Margin (NIM)
    13% to 14%
    		High
    Profitability
    PAT growth
    similar to 30%+
    		Medium
    Capital Raising
    Capital raise amount
    INR100 crores
    		High
    Product Mix
    Two-wheeler contribution to AUM
    65%
    		High
    Product Mix
    Two-wheeler contribution to AUM
    75% to 77%
    		High
    Partnership Performance
    Namma Loan AUM
    INR60 crores to INR75 crores
    		High
    Partnership Performance
    Namma Loan break-even
    9 to 12 months
    		Medium
    Market Share
    Market share
    15%
    		High

    What to watch in Q2 FY27

    5

    Capital Raising Completion

    by September or latest by October
    CurrentIn process
    TargetINR100 crores raised

    Why it matters

    Successful capital raise is crucial for supporting planned growth and maintaining healthy capital adequacy.

    And we are in a process of raising the capital. By September or latest by October, we will raise INR100 crores to for to manage our further growth and expansion.

    Risks & concerns

    2
    RiskSeverity

    Capital Adequacy Ratio Decline

    The capital adequacy ratio declined from 29.81% in FY25 to 24.40% in Q1 FY27, which an analyst questioned as potentially impacting growth capacity. Management acknowledged this and stated a capital raise is underway. — Analyst acknowledged

    medium

    Increased Cost of Borrowing

    The average cost of borrowing increased slightly to 10.86%. Management attributed this to maintaining a healthy liquidity buffer, implying it was a strategic choice rather than a market-driven issue. — Analyst acknowledged

    low

    Q&A highlights

    8

    “Yes. So, we have already visualized this thing and anticipated the need for the further capital. And we are in a process of raising the capital. By September or latest by October, we will raise INR100 crores to for to manage our further growth and expansion.”

    Analyst questioned the decline in CAR, and management confirmed a planned capital raise to support growth, providing a specific timeline and amount.

    asked by Rohan Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Highlights

    Manba Finance Limited reported a robust start to FY27, with Net Interest Income (NII) growing by 36% year-on-year to INR42 crores. Profit After Tax (PAT) also saw a significant 36% year-on-year increase, reaching INR13 crores. The company's Asset Under Management (AUM) expanded by 22% year-on-year to INR1,731 crores as of June 30, 2026, while disbursements surged by 37% year-on-year to INR226 crores, indicating strong operational momentum.

    02

    Strategic Diversification and Geographical Expansion

    The company is actively diversifying its product portfolio beyond its core two-wheeler loans, which currently constitute 84.1% of the portfolio. New offerings include MSME loan against property (LAP) and battery replacement finance for electric three-wheelers. Geographically, Manba Finance has entered the South Indian market through a strategic partnership with Sreesastha (Nammaloan), starting with Karnataka and planning expansion into Tamil Nadu, alongside strengthening its presence in Uttar Pradesh and Madhya Pradesh.

    03

    Asset Quality and Capital Position

    Manba Finance maintained strong asset quality, with over 95% of its portfolio secured. Stage one assets stood at INR1,619 crores (93.55% of the total), while Gross NPA was 3.41% and Net NPA was 2.52%, indicating well-controlled credit risk. The Capital Adequacy Ratio (CAR) remained healthy at 24.40%, although it decreased from 29.81% in FY25. To support future growth, the company plans to raise INR100 crores via preference shares by September or October 2026.

    04

    Funding and Liquidity Management

    The company's average cost of borrowing was 10.86% in Q1 FY27. Management noted a slight increase in this cost due to a strategic decision to maintain healthy liquidity, with INR200 crores kept as liquidity during the quarter. The borrowing mix comprises approximately 60% term loans, 25% NCDs, and the remainder from PTC and CC, reflecting a diversified funding base from three public sector banks, ten private sector banks, and 25 NBFCs.

    05

    Technology and Operational Efficiency

    Manba Finance emphasizes technology as a critical enabler for speed and efficiency in the retail lending segment. Its Loan Origination System (LOS), Loan Management System (LMS), and Loan Accounting System (LAS) are 90% proprietary and continuously upgraded. The company boasts a fast loan sanction process, with over 60% of loans sanctioned within one minute and 92% on the same day. All products are now digitally equipped, including scan-based, e-sign, and NACH processes.

    06

    Outlook and Growth Drivers

    Management is confident in achieving 35% to 40% AUM growth for the current financial year and targets a Return on Assets (ROA) of 3.5% for FY27, with Net Interest Margin (NIM) expected to be in the 13-14% range. This will be driven by increased contributions from higher-yield products like personal loans, top-up loans, and used two-wheelers. The company also aims to reduce the two-wheeler portfolio contribution to 75-77% by year-end and 65% within three years, while targeting INR60-75 crores AUM from the Namma Loan partnership this year.

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