Company Overview
Manba Finance Limited (BSE: 544262) reported strong financial performance for FY 2025-26 with significant growth across key metrics. The company achieved 28.6% YoY AUM growth to ₹17,127 million and 20.1% PAT increase to ₹454 million. Disbursements grew 16.0% to ₹9,769 million while Net Interest Income increased 24.3% to ₹1,616 million.
Financial Performance & Asset Quality
The company maintained robust asset quality with Gross NPA at 3.33% and Net NPA at 2.46%, supported by a strong Capital Adequacy Ratio of 24.46%. Return on Equity stood at 11.65% and Return on Assets at 2.63%. Detailed segment analysis shows the industry segment had total exposure of ₹1,26,974.03 lakh with Gross NPA of ₹3,890.26 lakh (3.06%), primarily from vehicle loans. The liquidity coverage ratio was strong at 2.17, exceeding regulatory requirements.
Operational Highlights & Strategic Initiatives
Manba Finance expanded its branch network to 130 locations across 6 states (Gujarat, Maharashtra, Uttar Pradesh, Rajasthan, Madhya Pradesh, Chhattisgarh) with 1,596 dealer partners and 1,802 employees serving 229,516 active customers. Key strategic initiatives included a partnership with TVS Motor Company as preferred financier for TVS three-wheeler vehicles, implementation of Straight Through Processing (STP) for used two-wheeler loans, and enhanced digital capabilities including Salesforce Marketing Cloud integration and WhatsApp-enabled communication.
Funding & Capital Structure
The company had outstanding borrowings of ₹1,548.70 crore with net borrowings increasing by ₹326.62 crore during FY26. Funding mix included term loans, Non-Convertible Debentures (NCDs), and securitisation borrowings. Multiple NCD issuances during FY26 totaled ₹365 crore across various series with interest rates ranging from 10.65% to 13.25%. The company maintained CARE BBB+ (Positive) credit rating for NCDs and long-term bank facilities.
Dividend Distribution & Corporate Actions
The Board recommended a final dividend of 2.5% (₹0.25 per share), following an interim dividend of 7.5% paid in two installments. If approved at the 30th AGM on September 26, 2026, the total dividend for FY26 would be 10% (₹1.00 per share). The company registered numerous charges during FY26 totaling over ₹1,100 crore with various lenders, all filed within regulatory timelines.
Corporate Governance & Compliance
The board composition includes 8 Directors (4 Executive, 4 Non-Executive Independent) with 9 meetings held during the year. Key committees include Audit, Nomination and Remuneration, Risk Management, CSR, and Stakeholders Relationship. The company spent ₹75 lakh on CSR initiatives focused on education and medical programs. Full compliance with SEBI Listing Regulations and RBI requirements was maintained, with liquidity risk managed through adequate reserves and maturity matching.
Risk Management & Forward Outlook
Credit risk management utilizes an ECL model with three-stage approach, while liquidity risk is managed through adequate buffers with ₹26,709.65 lakhs in cash and bank balances. The maturity profile shows ₹88,543.03 lakh due within 12 months and ₹67,065.34 lakh beyond 12 months. Forward-looking statements indicate management's focus on continued growth while acknowledging risks from economic conditions, regulatory changes, and competitive pressures.