Manappuram Finance (531213) Q1 25/26 earnings summary

Executive summary

• Consolidated AUM reached INR 44,304 crores, up 3% QoQ, with gold loans now 65% of AUM and a strategy to increase this to 75% while reducing microfinance to 10%.

• New CEO Deepak Reddy joined, Bain Capital investment expected to support growth, and V.P. Nandakumar appointed Chairman effective August 28, 2025.

• Board approved unaudited results for Q1 FY26 and declared an interim dividend of 50% (Rs. 0.50 per share), with record date August 14, 2025.

• Company is India's second largest gold loan lender, with over 5,000 branches, 50,000+ employees, and a focus on under-banked customers.

• Well-capitalized with a Tier 1 ratio of 28.7% and diversified funding sources.

Financial highlights

• Consolidated revenue for Q1 FY26 was INR 2,262.39 crores, down from INR 2,488.22 crores YoY; consolidated PAT at INR 132.5 crores, a turnaround from a loss in Q4 FY25 but down YoY.

• Standalone revenue at INR 1,744.5 crores, standalone PAT at INR 392.1 crores, both down YoY.

• Gold loan AUM grew 12.6% QoQ and 21.8% YoY; microfinance AUM declined 18% QoQ and 45% YoY, with a Q1 loss of INR 267-269 crores.

• Vehicle finance AUM at INR 4,492 crores, down 5.9% QoQ; home loan portfolio at INR 1,901 crores, up 4.3% QoQ and 19.8% YoY.

• Net interest income (consolidated) at INR 1,407 crores, down 3.9% QoQ and 14.2% YoY; cost of funds stable at 9.2%.

Outlook and guidance

• Gold loan yields to be reduced to 18-19% over 4-6 quarters, with focus on higher ticket size customers and co-lending.

• Microfinance losses expected to decline further, with credit costs projected to reduce by at least 30% in coming quarters.

• Continued focus on technology, risk management, and rural/semi-urban expansion.

• Non-gold portfolio to be consolidated, with focus on asset quality and higher average ticket size in MSME and vehicle finance.

• Interim dividend reflects confidence in ongoing business performance.