Manappuram Finance (531213) Q3 25/26 earnings summary

Executive summary

• Consolidated AUM reached INR 52,125 crore in Q3 FY26, up 13.8% year-over-year, led by robust gold loan growth and stable asset quality.

• Gold loan AUM grew 23% year-over-year to INR 38,754 crore, supported by higher gold prices and strong demand, with stable LTV ratios around 56%-60%.

• Consolidated PAT for Q3 FY26 was INR 239 crore, up 9.8% year-over-year, but down 14.3% sequentially.

• Interim dividend of INR 0.50 per share declared for the quarter.

• Maintained strong capital adequacy (CRAR 24.62%) and liquidity, with cash & equivalents at INR 4,671 crore.

Financial highlights

• Standalone AUM at INR 44,209 crore, up 60.9% year-over-year, driven by gold loans.

• Standalone PAT at INR 381 crore for Q3 FY26, up 1.3% year-over-year, but down 13.9% sequentially.

• Asirvad Microfinance AUM at INR 6,091 crore, down 1.2% year-over-year; Q3 loss at INR 156 crore, improved sequentially.

• Consolidated total income for Q3 FY26: INR 2,358.89 crore, down from INR 2,562.63 crore YoY.

• OPEX/AUM improved to 6.2% standalone and 5.1% consolidated.

Outlook and guidance

• Gold loan business expected to remain the core growth engine, with industry AUM projected to rise due to elevated gold prices and regulatory support.

• Standalone ROA targeted at 4.25%-4.5% by the second half of next year, driven by volume growth and OPEX optimization.

• Non-gold businesses to focus on consolidation and risk management before resuming growth in FY27.

• Continued calibrated growth in MSME, housing, and vehicle finance segments.

• Company will monitor regulatory changes, especially new labour codes and their impact on employee benefits.