Manappuram Finance (531213) Q2 26/27 earnings summary

Executive summary

• Consolidated Q2 FY27 PAT was Rs 701.25 crore, up 222.9% YoY; H1 PAT was Rs 1,286.02 crore, led by gold lending.

• Consolidated AUM reached Rs 73,303 crore, up 60.1% YoY; gold AUM was Rs 60,640 crore, up 92.5%.

• Non-gold portfolios were mixed: MFI AUM grew, while vehicle finance AUM contracted and collections remained a priority.

• The Board declared a second interim dividend of Rs 1 per share, bringing FY27 interim dividends declared to Rs 2 per share.

Financial highlights

• Consolidated revenue from operations was Rs 3,356 crore, up 46.2% YoY; net interest income was Rs 1,976 crore, up 39.1%.

• Consolidated Q2 total income was Rs 3,372.03 crore versus Rs 2,275.28 crore YoY; PBT was Rs 937.59 crore versus Rs 302 crore.

• Consolidated pre-provision operating profit was Rs 1,245 crore, up 75.5% YoY; loan losses and provisions were Rs 307 crore, down 24.8%.

• Standalone Q2 PAT before OCI and minority interest was Rs 665 crore, up 20% QoQ and 77% YoY; H1 standalone PAT was Rs 1,216.52 crore.

• Consolidated H1 revenue was Rs 6,403 crore, up 40.8% YoY; net interest income was Rs 3,748 crore, up 32%.

Outlook and guidance

• FY27 loan growth guidance is 25%-30%; gold-loan AUM growth is expected near 30%.

• Plan to add 500 branches by March 2027; nearly 100 had opened, with work underway on another 250.

• Q4 exit borrowing cost is expected to rise 25-30 bps toward the 9% handle; gold-loan gross yield guidance is 17.5%-18.5%.

• Return targets remain ROA 3.5%-4% and ROE 15%-18%; OpEx/AUM and employee cost/AUM are expected to decline despite branch additions.

• Growth initiatives include branch reach, digital acquisition and productivity in gold lending, housing finance and MSME; MFI growth remains cautious and portfolio-quality led.