Financial Performance Overview
Manappuram Finance Limited reported mixed financial results for FY 2025-26, with consolidated Assets Under Management (AUM) growing 48.3% year-over-year to ₹63,798 crore, driven primarily by a 99.1% surge in gold loan AUM to ₹50,953 crore. However, net profit declined 17.5% to ₹993 crore before OCI and minority interest, while Profit Before Tax (PBT) decreased 23.7% to ₹1,270 crore. The company maintained a strong capital adequacy ratio of 21.3%, well above regulatory requirements.
Capital Raising and Strategic Investment
A significant development was Bain Capital's strategic investment completed through preferential allotment on March 27, 2026. The transaction involved 9.29 crore equity shares allotted to BC Asia Investments XXV Limited at ₹236 per share (₹2,192.47 crore) and 9.29 crore warrants allotted to BC Asia Investments XIV Limited at ₹236 per warrant (₹2,192.47 crore), aggregating ₹4,385 crore. This resulted in increased authorized share capital from ₹2,000 million to ₹3,000 million and post-year end, Bain entities acquired control alongside existing promoters Mr. V.P. Nandakumar and Ms. Sushama Nandakumar.
Borrowings and Funding Structure
Total borrowings surged 94.97% to ₹407.3 billion, comprising Indian rupee term loans from banks (₹188.93 billion), foreign currency term loans (₹97.80 billion), and working capital demand loans (₹95.97 billion). The company raised ₹10,000 million through non-convertible debentures via private placement and maintained external commercial borrowings of ₹126.91 billion. Commercial paper outstanding increased to ₹37.43 billion from ₹2.94 billion in FY25.
Credit Ratings and Risk Management
The company maintained strong credit ratings with CRISIL AA-/Stable, CARE AA Stable, and international ratings of BB-/Stable from both S&P Global and Fitch. Extensive derivative hedging positions of ₹99.49 billion were maintained to manage foreign currency risk on $1.32 billion foreign currency borrowings, including $300 million USD bonds at 10.36% p.a. maturing May 2028 and $1,021 million ECBs at 8.06%-9.72% p.a.
Subsidiary Performance and Segment Results
Segment reporting showed contrasting performance: Gold Loan and Others segment generated revenue of ₹82,744.13 million with PBT of ₹21,059.92 million, while the Microfinance segment (primarily Asirvad Micro Finance) reported revenue of ₹12,502.92 million with significant loss of ₹(8,357.76) million. Asirvad Micro Finance posted a net loss of ₹5,790.57 million despite ₹750 crore capital infusion during FY26. Other subsidiaries including Manappuram Home Finance (₹283.48 million profit) and Manappuram Insurance Brokers (₹292.34 million profit) remained profitable.
Corporate Governance and AGM Arrangements
The company will hold its 34th Annual General Meeting on August 12, 2026, to adopt FY26 financial statements and reappoint Dr. Sumitha Nandan as director. Shareholders approved four quarterly dividends of ₹0.50 per share totaling ₹2.00 per share for FY26. Significant management changes included Mr. V.P. Nandakumar appointed as Chairman effective August 28, 2025, Mr. Deepak Reddy as CEO effective August 1, 2025, and Mr. Buvanesh Tharashankar as Group CFO effective December 26, 2025.
Risk and Compliance Disclosures
The Group reported 1,778 fraud cases aggregating ₹561.83 million, primarily from employee misconduct (1,603 cases amounting to ₹424.01 million), with overall recovery of ₹142.91 million. RBI penalties of ₹270,000 were imposed during FY26, significantly lower than the ₹6.15 million in FY25. Covenant breaches were disclosed in two subsidiaries, and the company maintained robust internal financial controls with over 1,000 dedicated internal audit personnel supported by PricewaterhouseCoopers.
Financial Position and Asset Quality
Total assets stood at ₹745.59 billion with loans net of ECL at ₹628.44 billion. Impairment on financial instruments rose to ₹15.56 billion, including write-offs of ₹3.90 billion. The gold loan portfolio represented 81.45% of total AUM with LTV maintained below 75%. Expected credit loss provision included Stage 1: ₹3.76 billion, Stage 2: ₹450 million, and Stage 3: ₹3.92 billion.
CSR and Regulatory Compliance
CSR spending reached ₹372.62 million against the required ₹427.79 million, with 60 capital assets created through initiatives focused on education, healthcare, and rural development. The company confirmed compliance with RBI's Scale Based Regulation directions issued November 2025 and maintained adequate liquidity coverage ratios ranging from 117.35% to 304.01% across quarters.