The Manappuram Finance shares have plunged 3% despite a steady Q4. The gold loan growth was strong, but net interest margins remained under pressure.
The company expects to sustain growth in FY27, led by strong gold loan momentum, supported by a robust franchise and disciplined underwriting. The company highlighted that regulatory easing for branch expansion may help scale up distribution, and management expects to add 500-550 gold loan branches in FY27. According to them, partnerships and co-lending will broaden their reach beyond branch presence.
Motilal Oswal on Manappuram Finance
The company delivered a strong performance in the gold loan segment, supported by rising gold prices, healthy demand, and a gradual shift in customer preference toward formalised financing, said Motilal Oswal Financial Services.
Overall, the performance remained mixed, with continued pressure on profitability due to NIM compression and weakness in the non-gold portfolio.
However, management believes that margins have likely bottomed out and guided for stability in yields in the quarters ahead. “Asset quality across vehicle finance and the recovery trajectory of Asirvad MFI remain monitorable, despite initial signs of improvement,” said Motilal Oswal.
The brokerage house has maintained its ‘Neutral’ rating and target price of Rs 315 on the stock, implying an upside of mere 3%.
Manappuram Finance Q4FY26 performance
Its consolidated net profit came in at Rs 404.79 crore as against a loss of Rs 203.17 crore in the same period a year ago. Sequentially, profit jumped 69% from Rs 238.55 crore recorded in the December quarter.
The total revenue from operations came in at Rs 2,613.83 crore in Q4FY26, up 10% year-on-year over Rs 2,360.94 crore posted in the corresponding period last year.
The net interest income (NII) remained largely unchanged at Rs 1,404 crore in Q4FY26 from Rs 1,406 crore in the year-ago quarter.
For the whole year, the company’s consolidated net profit fell 17.51% YoY to Rs 993.14 crore and 5% decline in total revenue from operations to Rs 9,509.39 crore in FY26 over FY25.
Category-wise, Manappuram Finance witnessed robust growth in gold loans amid a steep rise in the prices of the glittering metal. During the fourth quarter, gold loans rose to Rs 2,331 crore, posting an over two-fold jump compared with Rs 990.43 crore reported in the same period a year back.
Manappuram Finance dividend in Q4
Also, the company announced an interim dividend of Rs 0.50 per share of the face value of Rs 2 each. The company has fixed Monday, May 11, as the record date to identify eligible shareholders.
Manappuram Finance share price performance
The share price of Manappuram Finance has risen 4.5% in the last five trading sessions. The stock has given a return of 18% in the past one month and 12% from the last six months. Manappuram Finance’s stock price has surged 34% over the previous one year.