MANAPPURAM - Manappuram Fin.

📊 NSE: MANAPPURAM 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 9:31

💰 Financial Performance

Revenue Growth by Segment

Asirvad Microfinance revenue fell 53.8% YoY to INR 360 Cr in Q2 FY26. Standalone Vehicle and Equipment Finance AUM grew to INR 5,085 Cr, up from INR 4,773 Cr in the previous quarter. Gold loan auction volume was INR 229 Cr for the quarter.

Geographic Revenue Split

Not disclosed in available documents, though operations focus on semi-urban and rural locations across India.

Profitability Margins

Asirvad Microfinance reported a PAT loss of INR 168 Cr in Q2 FY26, a 323.3% decline from a profit of INR 75 Cr in Q2 FY25. Pre-provision profit for Asirvad fell 90.2% YoY to INR 30 Cr.

EBITDA Margin

Asirvad Microfinance Net Interest Income (NII) fell 58% YoY to INR 209 Cr. Consolidated profitability was impacted by a 21.2% YoY increase in Asirvad's impairment of financial instruments to INR 247 Cr.

Capital Expenditure

Parent company infused INR 500 Cr equity into Asirvad Microfinance to support liquidity and capital structure during a difficult sector phase.

Credit Rating & Borrowing

Approved issuance of Secured Non-Convertible Debentures (NCDs) up to INR 500 Cr on a private placement basis in December 2025. Asirvad finance costs fell 46.3% YoY to INR 151 Cr due to lower disbursement volumes.

⚙️ Operational Drivers

Raw Materials

Debt and Equity Capital represent 100% of the 'raw material' for lending operations. Finance costs for Asirvad were INR 151 Cr, representing 41.9% of its revenue from operations.

Import Sources

Domestic capital markets and banking institutions within India.

Key Suppliers

Lenders include various Indian banks and institutional investors through private placement of debentures (INR 500 Cr approved).

Capacity Expansion

Vehicle Finance operations are carried out from 150+ existing gold loan branches. The company is focusing on increasing per-branch AUM to reduce OpEx to AUM ratios.

Raw Material Costs

Finance costs for Asirvad fell 46.3% YoY to INR 151 Cr in Q2 FY26. Procurement strategy involves shifting to co-lending models with 10-20% participation to optimize capital use.

Manufacturing Efficiency

Focusing on OpEx to AUM reduction through per-branch AUM growth and leveraging technology for auto-underwriting.

📈 Strategic Growth

Expected Growth Rate

6.5-6.6%

Growth Strategy

Executing a 6-priority roadmap: strengthening gold loans, accelerating Housing Finance (HFC) growth, stabilizing Asirvad MFI through better collections, and expanding co-lending. The company is also shifting vehicle finance to higher ticket sizes (INR 8-15L) to improve asset quality.

Products & Services

Gold Loans, Microfinance Loans (Asirvad), Vehicle and Equipment Finance, Housing Finance (Manappuram Home Finance), MSME Loans, and Insurance Broking.

Brand Portfolio

Manappuram Finance, Asirvad Microfinance, Manappuram Home Finance.

New Products/Services

Expansion of co-lending models (10-20% participation) and digital lending platforms to improve operational efficiency.

Market Expansion

Focus on semi-urban and rural locations for used commercial vehicle finance and marketing the PMAY government subsidy scheme for housing finance.

Strategic Alliances

Co-lending partnerships where Asirvad participates with 10% to 20% of the loan value.

🌍 External Factors

Industry Trends

Increasing recognition of NBFCs in financial penetration. Industry yield benchmark is 18.5%. Shift toward digital payment platforms for operational efficiency.

Competitive Landscape

Competition from banks resetting rates and other NBFCs; company maintains NIM by resetting borrowing costs and improving OpEx efficiency.

Competitive Moat

Brand legacy and a massive physical branch network (150+ for vehicle finance alone) provide a durable cost and reach advantage in rural/semi-urban markets.