Manappuram Finance (531213) Q2 25/26 earnings summary

Executive summary

• Consolidated net profit for Q2 FY26 rose to INR 217 crore from INR 132 crore in Q1 FY26, but declined 62% YoY; driven by reduced losses in microfinance subsidiaries and strong gold loan growth.

• Consolidated AUM reached INR 45,789 crore, up 3.4% QoQ; gold loan AUM grew 29.3% YoY to INR 31,505 crore, now 69% of total AUM.

• Gold loan business remains the primary growth driver, with stable LTV at 56%, increased AUM per branch, and improved customer retention.

• Asirvad Microfinance reported a significant YoY decline in revenue and profitability, with a PAT loss of INR 168 crore in Q2 FY26.

• Strategic focus on accelerating gold loan growth, improving non-gold business profitability, and enhancing organizational effectiveness.

Financial highlights

• Standalone PAT for Q2 FY26 was INR 376 crore; consolidated PAT excluding Asirvad was INR 385 crore, down 4.1% due to higher vehicle finance provisions.

• Net interest income was flat QoQ at INR 1,408 crore, but down 18.5% YoY; OPEX decreased 1.4% QoQ but increased 5.8% YoY.

• Borrowing cost reduced by 12 bps; consolidated cost of borrowing improved to 9.1% in Q2 FY26.

• Home loan AUM at INR 1,900 crore, up 12.3% YoY; MSME loans at INR 3,159 crore.

• Interim dividend of 50% declared.

Outlook and guidance

• Continued focus on gold loan growth, secured non-gold products, and co-lending partnerships.

• Gold loan yield expected to settle around 18.5%, with profitability maintained through lower cost of funds and operational efficiency.

• Growth strategy includes calibrated expansion in MSME, housing, and vehicle finance, with cross-sell opportunities.

• CEO to present a detailed strategic roadmap by Q4 FY26.