Manappuram Finance LimitedFinancial ServicesMANAPPURAM
Q1 FY27 concall · earnings callManappuram Finance Limited
Strong quarter driven by gold loan growth, improved yields, and a return to profitability for the microfinance business.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated AUM | ₹69,635 Cr | 9% QoQ | |
| Consolidated Revenue | ₹3,033 Cr | 16% QoQ | |
| Consolidated PAT | ₹585 Cr | 45% QoQ | |
| Gold Loan AUM | ₹57,006 Cr | 12% QoQ | |
| Gold Loan Yield Improvement | 59 basis points | — | |
| Stand-alone GNPA | 1.56% | — | |
| Capital Adequacy Ratio | 21.29% | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹2,559.72 Cr+11% YoY-2.8% QoQ | ₹278.46 Cr-51.6% YoY-51.3% QoQ | ₹3.29-51.5% YoY-51.3% QoQ |
| Q2 FY25 | ₹2,633.10 Cr+22.1% YoY+5.8% QoQ | ₹572.08 Cr+2% YoY+2.8% QoQ | ₹6.75+2% YoY+2.6% QoQ |
| Q1 FY25 | ₹2,488.22 Cr+22.8% YoY+5.4% QoQ | ₹556.52 Cr+11.7% YoY-1.2% QoQ | ₹6.58+11.9% YoY-1.2% QoQ |
| Q4 FY24 | ₹2,359.77 Cr+33.9% YoY+2.4% QoQ | ₹563.49 Cr+38.6% YoY-2.1% QoQ | ₹6.66+35.6% YoY-1.9% QoQ |
| Q3 FY24 | ₹2,305.28 Cr+34.5% YoY+6.9% QoQ | ₹575.31 Cr+46.2% YoY+2.6% QoQ | ₹6.79+46% YoY+2.6% QoQ |
TL;DR
- Consolidated AUM grew 9% QoQ to Rs 69,635 Cr, with gold loans making up 82%.
- PAT surged 45% QoQ to Rs 585 Cr, helped by gold loan yield improvement of 59 bps.
- Gold loan AUM rose 12% QoQ to Rs 57,006 Cr.
- Microfinance subsidiary Asirvad reported a PAT of Rs 21 Cr, a significant swing from a year-ago loss.
- Management targets 25%-30% gold loan growth for FY27 and plans to add 500 branches.
Said on the call
“Our performance during the quarter reflects the inherent strength of our diversified business model and the resilience of our core gold loan franchise.”
From the Q&A
| Topic | What management said |
|---|---|
| Gold Loan Yields and Growth | Management said the 59 bps yield improvement came from pricing actions, not a customer mix shift. They expect yield to stabilize around 18%. Gold loan growth is targeted at 25%-30% for FY27. |
| New RBI Framework and Products | The company has launched new products like monthly EMI/interest payment schemes under the new RBI guidelines. Income-generating gold loans are assessed on cash flow and can have LTVs up to 85% with interest rates of 14%-16%. |
| Branch Expansion | Management plans to open 500 branches in FY27, leveraging the removal of RBI's prior approval requirement. About 60% will be in South and Central India. |
| Non-Gold Businesses | Vehicle finance lending is paused to focus on collections. Microfinance growth is to be contained below 10% of consolidated AUM, with a focus on asset quality. |
| Cost of Funds and ROA/ROE Targets | Incremental borrowing cost is seen around 8.8%-9%. The company targets an ROA of 3.5%-4% and an ROE of 15%-18%, aiming for ~18% ROE in three years. |
Guidance
- Gold loan growth expected to be around 25%-30% for FY27.
- Gold loan yield expected to be around 18%, +/- 25 bps.
- Plan to open 500 branches in FY27.
- Target ROA of 3.5%-4% and ROE of 15%-18%, aiming for ~18% ROE in three years.
- Microfinance business to be contained below 10% of consolidated AUM.
- Vehicle finance disbursements paused for the year.
Source
Summary written from the transcript filed by Manappuram Finance Limited for the call held on 11 Aug 2026; published 18 Aug 2026, 20:38 IST.
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