Manappuram Finance Ltd Q2 FY27 Results Analysis: PAT Jumps 223%, Credit Cost Triples
Manappuram Finance Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,361.55 Cr (+47.79% YoY) and PAT growth of +222.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,361.55 Cr (+47.79% YoY) |
| PAT (Q2) | Rs. 701.25 Cr (+222.70% YoY) |
| EPS (Q2) | Rs. 7.46 (+190.30% YoY) |
Quarter Snapshot
Consolidated revenue grew 47.79% YoY and PAT grew 222.70% YoY to Rs.701.25 Cr, with PPOP up 80.23% YoY and cost-to-income down to 34.92%, driven by the gold-loan book (segment assets +74.4% YoY). The microfinance segment posted its third consecutive profitable quarter and is contained at 7.90% of segment assets, in line with management's 8-10% guidance. The key offset is a sharp provisioning step-up — underlying credit cost roughly tripled sequentially to ~1.73% annualized — alongside Asirvad's PAR-90/ROE covenant non-compliance and a 20 bps rise in Stage 3 loans.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| MFI contained below 10% (8–10%) of AUM | Q1 FY27 call, Aug 11, 2026 | MFI = 7.90% of total segment assets at Sep 30 (proxy; AUM not disclosed in the filing) | On Track |
| CAR 39–40% once Bain warrant money comes in | Q2 FY26 call, Oct 30, 2025 | CAR 22.36% at Sep 30; warrant balance unreceived Rs.1,644.35 Cr per the Q1 monitoring report — pre-conditions not yet met | On Track |
| Provision normalization (watch item: Q2 provisions at Q1's "normalized cycle" level) | Q1 FY27 call framing by the CFO | Impairment Rs.294.15 Cr vs ~Rs.100.22 Cr Q1 ex-ECL-top-up | Missed |
Key Numbers, Quarter by Quarter
| Metric | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Stage 3 / gross % | 1.81 (GNPA) | 1.60 | 1.80 |
| PCR % | — | 28.70 | 32.69 |
| CAR % | — | 21.29 | 22.36 |
| LCR % | — | 157.77 | 165.48 |
Key Investment Insights
Key Positives
- Consolidated revenue from operations grew 47.79% YoY to Rs.3,361.55 Cr; interest income grew 49.78% YoY
- Consolidated PAT grew 222.70% YoY to Rs.701.25 Cr; PAT to owners grew 218.81% YoY to Rs.700.99 Cr
- Consolidated PPOP grew 80.23% YoY to Rs.1,231.74 Cr; PPOP margin on total income expanded ~650 bps YoY to 36.53%
- Cost-to-income fell to 34.92% from 47.01% a year ago; consolidated opex nearly flat QoQ at Rs.687.67 Cr
- Microfinance segment posted third consecutive profitable quarter (PBT Rs.43.00 Cr vs loss of Rs.(214.82) Cr a year ago); MFI contained at 7.90% of segment assets, within management's 8-10% guidance
- Gold loan segment revenue grew 53.56% YoY with segment PBT margin expanding to 29.40% from 26.08%
- Standalone prudential metrics improved QoQ: CAR 22.36% (vs 21.29%), PCR 32.69% (vs 28.70%), LCR 165.48% (vs 157.77%)
- Loans grew 16.62% in H1 to Rs.73,288.19 Cr, funded partly by Rs.4,384.94 Cr of Bain-related preferential proceeds
Risk Factors
- Underlying provisioning roughly tripled sequentially: consolidated impairment Rs.294.15 Cr vs ~Rs.100.22 Cr Q1 ex-ECL-top-up; annualized credit cost ~1.73% vs ~1.33% in Q1, contradicting management's Q1 framing of a normalized provision cycle
- Standalone impairment grew 86.01% YoY and 50.39% QoQ to Rs.223.34 Cr
- Standalone Stage 3/gross loans rose 20 bps QoQ to 1.80%
- Asirvad has not complied with certain covenants related to PAR 90 and ROE as at Sep 30, 2026, on top of the Q1-disclosed RBI NBFC-MFI minimum qualifying-asset shortfall
- MFI book still shrinking: segment assets down 9.61% YoY at Rs.6,629.25 Cr
- Consolidated finance costs grew 57.64% YoY, faster than NII's 44.70% YoY; funding costs still outran asset yields on an annual basis
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.