Manappuram Finance Ltd

Financial Performance

• Consolidated AUM: INR 69,635 cr; +9% QoQ; +57% YoY.
• Gold loan AUM: INR 57,006 cr; +12% QoQ; +98% YoY; 82% of consolidated AUM.
• Consolidated revenue: INR 3,033 cr; +16% QoQ; +34% YoY.
• PAT: INR 585 cr; +45% QoQ; +47% YoY.
• Stand-alone AUM: INR 60,971 cr; +9% QoQ; +70.8% YoY.
• Stand-alone gold loan AUM: INR 54,655 cr; +12% QoQ; +97.4% YoY.
• Stand-alone PAT before OCI: INR 552 cr; +47% QoQ; +41% YoY.
• Interim dividend: INR 1 per share.

Segment Trends

• Gold loan remains growth engine; online gold loans 86% of gold book.
• Asirvad AUM: INR 7,188 cr; PAT before OCI: INR 21 cr; GNPA 1.4%; CRAR 31%.
• Vehicle finance AUM: INR 2,562 cr; GNPA 13.3%; QoQ -14.3%.
• MSME and allied: disbursed INR 191 cr; GNPA 5.9%.
• Home loans: INR 1,847 cr; flat QoQ; -3% YoY.

Balance Sheet & Liquidity

• CRAR: 21.29%; Net worth: INR 16,552 cr; Book value per share: INR 176.20.
• Interim dividend declared: INR 1 per share.

Guidance & Outlook

• Gold loan yield expected around 18% (±25 bps).
• Gold loan growth FY27: around 25-30%.
• Branch openings FY27: around 500; includes Asirvad.
• ROA target: 3.5-4%; ROE target: 15-18% over 3 years.
• Cost of funds: incremental around 8.8%-9%.

Q&A Highlights

• RBI LTV changes: income-generating loans up to 85% LTV; EMI-based; interest 14-16%.
• Pricing actions lifted yields; expected ~18% yield; not due to disbursal mix.
• Branch openings: expect 500; initial months slower, second quarter pickup.
• Asirvad: Q4 one-offs; Q1 provisions normalized.
• Co-lending: plan to co-lend with banks for Manappuram Housing Finance.
• ROA/ROE trajectory: ROA 3.5-4%; ROE 15-18%; ROE ~18% in 3 years.

AGM Details

• Date and time: 12 Aug 2026 at 11:00 AM.
• Mode: physical meeting with remote e-voting.
• Record date: 05 Aug 2026.
• Shareholders on record: 531,570.
• Attendance: Promoters 4, Public 585 present.
• Resolutions passed: 2.

Key Resolutions

• Adoption of financial statements for year ended 31 March 2026 — Passed; 99.999% assent.
• Appointment/re-appointment of Dr Sumitha Nandan as director — Passed; 87.57% assent.
• Appointment of Auditors for financial statements — Passed; no dissent noted.

Issue Overview

• Type of issue: Preferential issue of equity shares and warrants convertible into equity.
• Total issue size disclosed; net proceeds not stated; allocations revised within permissible +/-10%.
• Warrant proceeds largely outstanding; about three-quarters yet to be received.
• Use objectives: Capex, growth capital, strengthening balance sheet, onward lending, general corporate purposes.
• GCP object noted; MA indicates GCP utilization data not applicable.

Utilisation of Proceeds

• Utilisation as per disclosures: Yes, per monitoring agency.
• Deviations/reallocation: Rs 116.06 crore moved from object 2 to object 1; board approved 04 May 2026.
• Object-wise utilisation: 1a NIL; 1b 845.79; 1c 60.16; 2 314.03; 3 NIL.
• Total unutilised funds at quarter end: 1,718.99 crore.
• Unutilised funds status: parked in fixed deposits and monitoring/current accounts.
• Warrant proceeds outstanding: 75% yet to be received.

Governance and Compliance

• Approvals obtained: EGM-based approvals and management undertakings; board approved revision May 04, 2026.
• Utilisation as per disclosures: Yes; no material deviations reported.
• Material events affecting viability: Outstanding warrant receipts; conversion window 4–18 months.
• Warrant terms: issue price Rs 236; market price around Rs 363.55 as of Aug 6, 2026.
• Reliance on management undertaking; MA not auditing; no fiduciary relationship.

General Corporate Purpose (GCP)

• GCP: Not applicable; no data on GCP usage or board approvals for allocation.

AGM details

• Date/time: 12 August 2026, 11:00 AM; Mode: Physical at Thrissur venue.
• Quorum: Requisite quorum satisfied.

Key resolutions

• Adoption of standalone and consolidated financial statements for FY ended Mar 31, 2026.
• Ordinary resolution for re-appointment of Dr Sumitha Nandan as director liable to retire by rotation.

Voting & results

• Outcomes pending; e-voting results to be intimated separately.
• Resolutions to be deemed passed with requisite majority at AGM.

Dividend

• Dividend not proposed or declared in this AGM.

Directors & auditors

• Director: Dr Sumitha Nandan for re-appointment (ordinary).
• Statutory auditors attended; no appointment or tenure changes disclosed.

Related party transactions

• No material RPTs disclosed.

Other material approvals

• No other material approvals disclosed.

Meeting Details

• Date and time: Monday, August 17, 2026, 10:00 AM to 6:00 PM IST.
• Mode: In person; Type: Group and one-to-one meetings at conference.
• Event: Motilal Oswal 22nd Annual Global Investor Conference 2026.
• Participants: Company representatives including Company Secretary.
• Purpose: Investor interaction based on publicly available information.
• Presentation: Q2 FY2026 investor deck (Aug 11, 2026) available on company site.
• Note: Schedule subject to change.

Meeting Details

• Conference call date: 11 August 2026; virtual group meeting.
• Event: Q1 FY2026 results conference call organized by Manappuram Finance.

Participants

• Key company participants not disclosed; management roles not specified.

Purpose

• Purpose: discuss first quarter FY2026 results with investors.

Additional Notes

• Audio recording of the conference call uploaded on the company website.

Financial highlights

• Consolidated net profit for Q1 FY27: ₹585 crore, up 341.4% YoY.
• Total AUM rose 57.2% YoY to ₹69,635 crore.
• Gold loan AUM reached ₹57,006 crore, up 97.9% YoY.
• Nongold loan businesses accounted for 18.14% of total AUM.
• Asirvad Microfinance reported ₹21 crore profit in the quarter.
• Income from operations: ₹3,033 crore, up 34.1% YoY.
• Net interest income (NII): ₹1,759 crore, up 25% YoY.
• Branch network expanded to 5,328.

Outlook / management commentary

• Management highlighted growth momentum driven by efficiency, digitalisation and market expansion.

Business Overview

• Core NBFC focusing on gold loans, microfinance (Asirvad), housing and MSME lending.
• Growth model centered on branch expansion, digitalization, and cross-sell from gold-loan base.
• Pan-India gold loan network supports AUM growth and market reach.

Key Operational Highlights

• Consolidated AUM ₹69,635 Cr; Gold AUM ₹57,006 Cr; QoQ AUM +9.1%.
• Gold AUM growth 11.9% QoQ; network reaches ~3,500+ branches.
• Consolidated PAT ₹585 Cr; PPOP ₹1,007 Cr; EPS ₹24.4.
• Gold AUM per branch ₹14 Cr; customers per branch 706.
• MFI new book growth 30.1% QoQ; Standalone AUM ₹60,971 Cr; Consolidated AUM ₹69,635 Cr.

Financial Performance

• Revenue from operations ₹3,033 Cr; Net interest income ₹1,759 Cr; PAT ₹585 Cr.
• Opex ₹759 Cr; Opex/AUM 4.59%; YoY +128 bps, QoQ +51 bps.
• Standalone AUM ₹60,971 Cr; Consolidated AUM ₹69,635 Cr; Gold AUM ₹54,655 Cr.
• Cash and bank balances ₹3,316 Cr; Total assets ₹77,990 Cr; Borrowings ₹60,171 Cr.
• ROA 3.54%; ROE 14.3%; EPS ₹24.4.

Capital Structure & Liquidity

• Debt mix: Term Loans 45.6%, ECB 20.7%, WCDL 17.1%, NCD 9.0%, CP 7.4%.
• Total borrowings ₹60,171 Cr; cash balance ₹3,316 Cr; total assets ₹77,990 Cr.
• Credit ratings: S&P BB-, Fitch BB-; CRISIL AA- for Asirvad; CP A1+, LT AA stable.
• Raised $300m debt under Reg S in May 2024.

Strategic Priorities & Outlook

• Growth strategy emphasizes branch expansion, higher average ticket size, digital interventions, and productivity drives.
• MSME and allied expansions in rural/semi-urban markets via existing branches; cross-sell opportunities.
• Housing finance aims to scale across 12 states with funding diversification.
• Gold loan leadership; pan-India network; data-driven underwriting improvements.

Risks & Mitigation

• Asset quality risk in non-gold segments; mitigated by stringent underwriting.
• Regulatory and macro risks; managed via disciplined credit policy and robust collections.
• Borrower overlap risk mitigated by stringent checks and 3-lender overlap monitoring.
• Digital-first collections infrastructure to bolster cash flows.

Governance & Leadership

• Board includes CMD and independent directors with RBI/banking experience.
• Senior management includes Group CFO and Asirvad leadership; diversified leadership team.