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, driven 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 at 56%-57%.

• Standalone PAT for Q3 FY26 was INR 381 crore, up 1.3% year-over-year but down 13.9% sequentially; consolidated PAT at 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, with record date set as February 6, 2026.

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

Financial highlights

• Consolidated total income for Q3 FY26 was INR 2,358.89 crore, down from INR 2,562.63 crore YoY; consolidated PAT at INR 239 crore, down from INR 278.46 crore YoY.

• Standalone PAT at INR 381 crore, down from INR 453.39 crore YoY; standalone AUM at INR 44,209 crore, up 60.9% year-over-year.

• Gold loan yields declined to 18.3% from 19.7% last quarter, expected to stabilize around 18%.

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

• Cost of borrowing on standalone basis declined by 30 bps to 8.80%; consolidated cost of borrowing at 8.98%.

Outlook and guidance

• Gold loan business remains the core growth engine, with industry-wide AUM expected to scale sharply over the next two years.

• 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 (MSME, vehicle loans) to remain subdued until systems and controls are strengthened; growth expected to resume in FY27.

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

• Credit costs in non-gold books expected to decline as asset quality improves.