MANAPPURAM Q1 FY27 earnings call.
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Revenue
₹3,333 Cr
verified against source
Revenue YoY
34%
reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Manappuram Finance delivered a strong Q1 FY27 with consolidated AUM of ₹69,635 crore (+57% YoY) driven by gold loan expansion. Revenue from operations of ₹3,333 crore grew 34% YoY while PAT of ₹585 crore surged 347% YoY on low base. Standalone gold loan AUM reached ₹54,655 crore (+97% YoY), now comprising 90% of standalone book. The RBI's new gold loan framework effective April 2026 enabled income-generating products at 14-16% yield, with management targeting 18% steady-state gold loan yield. Capital position remains robust at 21.29% CAR. Key risks include elevated vehicle finance GNPA at 13.3% (vs 10.4% in Q4) prompting suspension of disbursements, and rising cost of funds impacting margins. Management guided for 25-30% gold loan growth in FY27, 500 new branch openings, and ROE target of 15-18% over three years.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets gold loan growth of 25-30% for full FY27, with Q1 already delivering ~12% sequential growth. Growth will be supported by 500 new branch openings, with 60% in South and Central India.
- Management expects gold loan yield to stabilize around 18%, potentially moving +/- 25 basis points from current levels. Q1 improvement of ~60 bps was driven by pricing actions taken to align with peer group.
- Management targets ROE of 15-18% and ROA of 3.5-4%, with expectation to reach ROE of ~18% in approximately 3 years as business mix stabilizes and operational efficiency improves.
- Following RBI removal of prior approval requirement for branch opening, management plans to add 500 gold loan branches. Approximately 60% in South and Central India, 25% in East (Bihar, West Bengal, Odisha), remainder elsewhere.
Risks flagged
- Vehicle finance GNPA rose sharply to 13.3% from 10.4% in Q4 FY26. Management has suspended disbursements entirely to focus on collections, indicating stress in this segment with no near-term recovery timeline provided.
- Standalone borrowing cost increased ~10 bps in Q1 FY27, with marginal funding cost at ~8.89%. Management acknowledged difficulty in predicting where cost of funds will settle given elevated rate environment.
- Gold price declined ~8.5% since March 2026, causing average LTV to rise from 57.3% to 65.6%. While management maintains average LTV cap at 64%, further price decline could trigger higher LTV ratios and impact collateral coverage.
- Vehicle finance AUM down 43% YoY, home loans down 3% YoY (flat QoQ), and microfinance growth muted at 7.2% YoY. With microfinance capped at 8-10% of consolidated AUM and vehicle finance suspended, diversification strategy may not offset gold loan concentration risk.
Key quotes
- We want to maintain around 75 to 80% of the consolidated AUM in gold and the balance would be secured lending like mortgage-based MSME lending plus affordable housing.
- The profile of the customer is moving to the business class. Earlier this was seen as a distress product. Now with the publicity given by all institutions including banks, more and more business people for particularly MSME are availing the loan.
- We expect gold loan yield to be somewhere around 18%. May go down by 25 basis points or go up by 25 basis, beyond that we don't expect anything.
- We are targeting an ROA of around 3.5 to 4% and targeting an ROE of 15 to 18%. In 3 years our expectation is to take ROE to around 18%.
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