Company Overview

Manappuram Finance Limited (BSE: 531213, NSE: MANAPPURAM), a leading NBFC, disclosed comprehensive FY2025-26 results through multiple regulatory filings including its 34th AGM notice, standalone and consolidated financial statements, and subsidiary holdings disclosure.

Financial Performance Highlights

Consolidated Performance:

  • AUM surged 48.3% YoY to ₹63,798 crores, driven by 99.1% growth in gold loan portfolio to ₹50,953 crores
  • Net profit declined 17.5% to ₹993 crores despite revenue growth
  • Net worth increased 29.1% to ₹16,051 crores with ROA at 2.0% and ROE at 7.7%

Standalone Performance:

  • Total income reached ₹76,534.27 million with net profit of ₹15,246.48 million
  • Borrowings increased significantly to ₹407,299.99 million from ₹208,903.60 million
  • Gross loan portfolio stood at ₹551,340.05 million with gold loans comprising 88.57%
  • Capital adequacy ratio remained strong at 21.31% with gross NPA improving to 1.80%

Strategic Capital Raise

Bain Capital entities (BC Asia Investments XXV Limited and BC Asia Investments XIV Limited) completed a strategic investment of ₹4,384.94 crores through:

  • Preferential allotment of 92,901,373 equity shares at ₹236 per share (₹2,192.47 crores)
  • Allotment of 92,901,373 warrants at ₹236 per warrant (₹2,192.47 crores, 25% received upfront)

This investment strengthened the capital base and resulted in Bain entities becoming promoters from April 21, 2026.

34th Annual General Meeting

The company will hold its AGM on August 12, 2026, to:

  • Adopt audited standalone and consolidated financial statements for FY ended March 31, 2026
  • Re-appoint Dr. Sumitha Nandan as director liable to retire by rotation

Remote e-voting will be available through CDSL from August 8-11, 2026, with cut-off date of August 5, 2026.

Operational and Segment Performance

Portfolio Composition:

  • Gold loans dominated with ₹488,137.66 million (88.57% of standalone portfolio)
  • Microfinance segment reported significant challenges with ₹8,357.76 million loss before tax
  • Vehicle finance and MSME segments showed mixed performance

Derivative Hedging:

The company extensively hedged foreign currency risk on USD 1,321 million of external borrowings through:

  • Forward contracts with notional value ₹28,429.89 million (MTM gain ₹2,715.83 million)
  • Cross currency interest rate swaps with notional value ₹96,826.54 million (MTM gain ₹7,232.94 million)

Total derivative assets reached ₹9,948.77 million as of March 31, 2026.

Subsidiary Performance

Asirvad Micro Finance Limited (98.56% owned):

  • Reported net loss of ₹5,790.57 million despite ₹750 crores capital infusion
  • AUM declined 35.7% to ₹4,636 crores with significant ECL provisions

Other Subsidiaries:

  • Manappuram Home Finance Limited: PAT ₹283.48 million with AUM ₹1,852 crores
  • Manappuram Insurance Brokers Limited: PAT ₹292.34 million
  • All subsidiaries maintained 100% ownership with no liquidations or sales

Corporate Governance and Compliance

Board Changes:

  • Dr. Shailesh Jayantilal Mehta ceased as Chairman effective August 27, 2025
  • Mr. V.P. Nandakumar appointed as Chairman effective August 28, 2025
  • Mr. Deepak Reddy appointed as CEO effective August 1, 2025

Regulatory Compliance:

  • Maintained strong credit ratings: CRISIL AA/Stable, CARE AA Stable, Brickwork AA(Stable)
  • Incurred RBI penalties totaling ₹6.42 million for various compliance issues
  • CSR spending of ₹372.62 million against mandatory requirement of ₹427.79 million

Risk Management and Asset Quality

Credit Risk:

  • ECL model implemented as per Ind AS 109 with stage-wise provisioning
  • Total impairment provisions: ₹8,127.51 million (consolidated), ₹3,642.47 million (standalone)
  • Technical write-offs of ₹3,898.29 million undertaken during the year

Liquidity Management:

  • Liquidity Coverage Ratio at 292.01% as of March 2026
  • Diversified funding sources including banks, financial institutions, and capital markets

Subsequent Events

  • Subscribed to right issue of Asirvad Micro Finance Limited: ₹788.43 crore on April 10, 2026
  • Subscribed to right issue of Manappuram Home Finance Limited: ₹150 crore on April 6, 2026
  • Mr. V.P. Nandakumar to be redesignated as Non-Executive Director and Chairperson effective October 1, 2026

The comprehensive disclosures demonstrate Manappuram Finance's strong operational growth in gold loans, strategic capital infusion from Bain Capital, and ongoing challenges in the microfinance segment, while maintaining regulatory compliance and robust risk management frameworks.