CreditAccess Grameen vs Manappuram Finance Q4 FY26

CreditAccess Grameen delivered a strong Q4 FY26, with PAT surging over 6x YoY to ₹340 crore and ROA reaching 4.4%. The AUM grew 14% YoY and 11.4% QoQ, driven by robust disbursement growth of 28.4% YoY. The recovery from the MFI credit cycle is evident: gross NPA (60 DPD) improved to 3.17% and PAR accretion rates have normalized. Management guided FY27 AUM growth of 20-25%, with credit cost declining to 3-4% and ROA of 4-4.8%. The retail finance portfolio (18.1% of AUM) is scaling rapidly, leveraging the group lending ecosystem. Key risks include prolonged West Asia crisis impacting rural demand and potential inflationary pressures on operating costs.

Guidance read

AUM growth of 20-25% in FY27: Management guided AUM growth of 20-25% for FY27, with MFI growing 10-12% and retail finance driving the balance. NIM of 12.8-13% in FY27: Net interest margin guided at 12.8-13% for FY27, down from Q4 FY26 exit of 14.2% due to expected pricing pass-through. Credit cost of 3-4% in FY27: Credit cost guided at 3-4% for FY27, down from 6.74% in FY26, reflecting normalized asset quality. ROA of 4-4.8% and ROE of 16-20% in FY27: Return on assets guided at 4-4.8% and return on equity at 16-20% for FY27.

Risk read

Key risks include Prolonged West Asia crisis impact — Management flagged potential supply disruptions (fuel/gas) from the West Asia crisis, which could affect rural customers and increase credit costs.; Inflationary pressure on operating costs — Management built in higher cost-to-income ratio guidance (33-35%) due to anticipated inflation from global issues, which could compress margins.; Competition in retail finance from peers — Analyst raised competition in Tamil Nadu; management acknowledged but downplayed, citing existing customer base and technology investments.; Regulatory cap on MFI share (60:40 mix) — Long-term growth ambition of 20%+ AUM CAGR may be constrained by the regulatory requirement to keep MFI below 60% of total portfolio..

Promise ledger

Scorecard data is being built as historical quarters are processed.

MA

Manappuram Finance

Q4 FY26 · Financial Services

Manappuram Finance reported a strong Q4 FY26 with consolidated revenue of ₹2,614 crore (+11% YoY) and PAT of ₹405 crore (+70% QoQ). Growth was driven by the gold loan portfolio, which surged 99% YoY to ₹50,953 crore AUM, now 80% of consolidated AUM. The microfinance subsidiary Asirvad posted a modest profit of ₹13 crore versus a loss of ₹156 crore in Q3, aided by a new book mix (59% of portfolio) with collection efficiency of 99.4%. Management guided for continued gold loan momentum, targeting 500-550 new branches in FY27, and expects consolidated ROE to improve to 13-16% over 1-2 years. Key risk: elevated credit costs in vehicle and MSME portfolios may persist, requiring further write-offs.

Guidance read

Gold loan AUM growth to exceed FY26 pace: Management expects gold loan volume growth in FY27 to be higher than FY26, supported by new products and branch expansion. Plan to open 500-550 new gold loan branches in FY27: New branches will be opened in identified high-potential locations, leveraging removal of prior approval requirement. Consolidated ROE target of over 15% by FY28: Management targets ROE exceeding 15% in FY28, driven by improving margins and asset quality. Gold loan yield to remain at 17.5-18%: Management expects gold loan yield to stabilize in the 17.5-18% range, with no further decline.

Risk read

Key risks include Vehicle finance portfolio stress — Vehicle finance AUM declined 37% YoY; GNPA improved to 10.4% but remains elevated. A one-time write-off of ₹84 crore was taken in Q4.; MSME portfolio NPA increase — MSME GNPA rose to 7.1% from 6.1% QoQ, raising concerns about potential further write-offs.; Gold yield compression from mix shift — Higher growth in larger ticket gold loans at lower rates could pressure yields despite management's guidance of stability.; Uncertainty around MD Ravi's return — MD Ravi is undergoing treatment in Singapore; his return timeline is unclear, creating leadership uncertainty..

Promise ledger

Scorecard data is being built as historical quarters are processed.