Manba Finance Limited – Investor Presentation Summary
Key Operational Highlights
- Total disbursements for Q2-FY27 stood at ₹2,665 Mn
- Expanded branch network to 148 locations across 7 states (Gujarat, Maharashtra, Rajasthan, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Karnataka)
- Dealer network grew to 1,932 partners as of H1-FY27 from 1,596 in FY26
- Serves over 1 million customers nationwide
- 40% of new loans are given to new-to-credit borrowers
- 95% of AUM is secured
- Credit Loss (NPA) remains below 1.5% despite serving underserved segments
Key drivers of operational performance: Geographic expansion into new states, technology-driven loan processing with 60% approvals within one minute, and diversification into used vehicles, personal loans, and MSME financing.
Segment-wise Performance
- Two-wheeler loans: Average ticket size up to ₹82,000, tenure 6-36 months
- Three-wheeler loans: Average ticket size ₹1.5-3 lakhs, tenure 12-48 months
- Used car loans: Average ticket size ₹2-6 lakhs, tenure 12-48 months
- Used 2W loans: Average ticket size ₹20,000-80,000, tenure 12-36 months
- Micro LAP: Average ticket size ₹10-12 lakhs, tenure 7 years
- Personal loans: Average ticket size up to ₹2 lakh
- Small business loans: Average ticket size ₹0.75-10 lakhs, tenure 12-60 months
Explanation of significant changes in segment performance: Expansion into used vehicles, personal loans, and MSME financing is reducing reliance on new two-wheeler loans, lowering product concentration risk.
Financial Highlights
Revenue: ₹1,904 Mn (H1-FY27)
NII: ₹938 Mn (H1-FY27)
PAT: ₹270 Mn (H1-FY27)
EPS: ₹5.37 (H1-FY27)
Margins: Not explicitly disclosed
Q2-FY27 Performance:
Interest Income: ₹926 Mn (up 28.8% YoY)
Net Interest Income: ₹521 Mn (up 40.4% YoY)
PAT: ₹137 Mn (up 20.2% YoY)
Diluted EPS: ₹2.73 (up 20.3% YoY)
Drivers of financial performance: Higher revenue growth from expanded operations, improved asset quality, and lower cost of borrowings at 10.14%.
Key Risks: Not explicitly disclosed in the presentation.
Geographical Revenue Split
Domestic vs Export/Regional Revenue: 100% domestic operations
Regional Breakdown: Operations across 7 states - Gujarat, Maharashtra, Rajasthan, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Karnataka
Balance Sheet Snapshot
H1-FY27:
Total Assets: ₹20,306 Mn
Loans: ₹16,344 Mn
Cash and Cash Equivalents: ₹2,340 Mn
Investments: ₹674 Mn
Total Financial Liabilities: ₹15,884 Mn
Debt Securities: ₹4,906 Mn
Other Borrowings: ₹10,774 Mn
Total Equity: ₹4,344 Mn
Equity Share Capital: ₹502 Mn
Other Equity: ₹3,842 Mn
Financial Health Insights: Strong capital base with successful raising of approximately ₹1,000 Mn through preferential issue.
Capex & Cash Flow Health
Capital Expenditure: Not specified
Free Cash Flow: Not specified
Operating Cash Flow: Not specified
Net Debt Movement: Not specified
Investment Rationale: Focus on technology upgrades and geographic expansion to support loan book growth.
Strategic & R&D Initiatives
Investments in Innovation: AI voice agents for automated onboarding and collections, comprehensive upgrade of Loan Origination System, WhatsApp-based messaging, paperless onboarding, Juspay disbursements, STP for used 2W, and DigiLocker integration.
Expected impact on growth: Technology investments aimed at faster approval cycles and accelerated disbursement TATs.
Strategic Rationale: Expanding into high-growth markets like South India with Karnataka as strategic entry market, focusing on EV financing due to high fuel prices.
Industry Trends & Business Environment
Macro/Industry Trends: Growing used car market projected at 14-15% industry growth by CRISIL, rapid momentum in EV2W and EV3W financing, small businesses and private transporters preferring EV3Ws for business purposes.
Impact on Company: Company is focusing on EV2Ws and EV3Ws financing to capitalize on market trends, and expanding into used vehicle financing to capture growth opportunities.
Management Commentary & Growth Outlook
Strategic Outlook: Company aims to penetrate existing markets further and diversify into new markets, with advancement into South India through Karnataka.
FY Guidance: Not explicitly provided
Market Share Targets: Not explicitly provided
Risks and Opportunities: Not explicitly highlighted
ESG Updates
Not specified
Digital Transformation
End-to-end technology platform covering customer onboarding through loan maturity, including Loan Origination System (LOS), Loan Management Systems (LMS) and Loan Accounting System (LAS). Integrated with payment gateways like Razorpay, virtual bank payment facility, VAHAN API for vehicle hypothecation verification, and Face Match API for fraud prevention.