Manappuram Finance vs Muthoot Finance Q4 FY26

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.

MU

Muthoot Finance

Q4 FY26 · Financial Services

Muthoot Finance reported a stellar Q4 FY26 with consolidated PAT surging 98% YoY to ₹10,607 crore, driven by record gold loan AUM of ₹1.65 lakh crore (up 54% YoY). Standalone PAT hit ₹10,134 crore (+95% YoY). The gold loan portfolio benefited from higher gold prices and a 0.5-1% rate hike, lifting yields to ~20.8%. Subsidiaries also performed well: Belstar Microfinance saw collection efficiency improve to 99.85%, and Muthoot Money's gold loan AUM grew 151% to ₹9,794 crore. Management guided for 15% standalone AUM growth in FY27, with 200-300 new branches planned. Risks include rising competitive intensity from AAA-rated NBFCs and potential yield normalization if gold prices stabilize. The shift to borrower-wise NPA classification increased reported NPAs, but underlying asset quality remains strong with LTV at 57%.

Guidance read

Standalone AUM growth guidance of 15% for FY27: Management reiterated its traditional first-quarter guidance of 15% standalone AUM growth for the full year, to be reviewed after Q1 or Q2. Branch expansion of 200-300 in Muthoot Finance and ~200 in Belstar: Plans to open 200-300 new gold loan branches in Muthoot Finance and about 200 gold branches in Belstar Microfinance in FY27. Yield likely to sustain at current levels: Management indicated that borrowing costs are trending up, so yields may not be reduced and could remain around current elevated levels.

Risk read

Key risks include Rising competition from AAA-rated NBFCs — Deep-pocketed competitors with lower cost of funds are entering gold financing, potentially pressuring market share and margins.; Customer churn and declining small-ticket customer base — Muthoot lost ~15 lakh small-ticket customers (below ₹50,000) as gold price rise reduced tonnage, though higher-ticket customers were added.; NPA increase due to borrower-wise classification — Stage 3 assets rose because of RBI-mandated borrower-level classification, though underlying collateral coverage remains strong at 58% LTV.; Potential yield normalization if gold prices stabilize — If gold price appreciation slows, the recent pricing benefit may reverse, compressing yields and profitability..

Promise ledger

Scorecard data is being built as historical quarters are processed.