Manappuram Finance Q1 FY27 Earnings Call: Guides 25-30% Gold Loan Growth, 500 New Branches Planned

Manappuram Finance Ltd held its Q1 FY27 earnings call on August 11, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record AUM and Profit Surge Across the Board

• Consolidated AUM of Rs.69,635 Cr — up 9% QoQ and 57% YoY in Q1 FY 2026-2027, driven primarily by gold loan growth.
• Consolidated revenue of Rs.3,033 Cr — up 16% QoQ and 34% YoY in Q1 FY 2026-2027.
• Consolidated PAT of Rs.585 Cr — up 45% QoQ and 347% YoY in Q1 FY 2026-2027, reflecting strong operating leverage.
• Standalone GNPA improved to 1.56% — from 1.8% in the prior quarter; standalone credit cost was 1% in Q1 FY 2026-2027.
• Consolidated CRAR of 21.29% — with book value per share of Rs.176.20 and net worth of Rs.16,552 Cr.
• Interim dividend of Rs.1 per share — declared by the board for Q1 FY 2026-2027.

Core Business Momentum with Stable Yields

• Gold loan AUM of Rs.57,006 Cr — comprising 82% of consolidated AUM (vs 80% in Q4 FY 2025-2026); standalone gold loan AUM reached Rs.54,655 Cr, up 12% QoQ and 97% YoY.
• Portfolio yield improved 60 bps to ~18% — in Q1 FY 2026-2027, driven by corrective pricing actions; management expects yield to remain stable around 18% for FY 2026-2027, with possible fluctuation of 25 bps.
• LTV moved to 65.6% as of 30 Jun 2026 — from 57.3% as of 31 Mar 2026, due to an ~8.5% gold price decline; management guided LTV to stay in the 64-67% range under stable gold prices.
• Gold loan portfolio by ticket size — up to Rs.1 lakh: 21%, Rs.1-3 lakh: 30%, above Rs.3 lakh: 49% as of Q1 FY 2026-2027.
• Income-generating gold loan yields 50-75 bps higher — than consumer gold loans, with ~85% LTV; management has capped this segment at 12% of the overall gold loan portfolio.
• Net loss on de-recognition of financial instruments of Rs.30 Cr — clarified as a loan write-off in Q1 FY 2026-2027.

RBI Framework Drives New Income-Generating Loan Products

• RBI's new LTV framework effective 1 Apr 2026 — implemented with slabs based on ticket size (up to Rs.2.5 lakh, Rs.2.5-5 lakh, above Rs.5 lakh); management trained staff 3 months prior to the effective date.
• Income-generating gold loan products launched — monthly and quarterly EMI options with interest rates of 14-16%; LTV can go up to 85% for monthly EMI products based on cash flow assessment.
• Online gold loan is not an overdraft — management clarified that the product is a normal loan, not subject to RBI's draft guidelines on revolving/overdraft facilities.
• Bullet repayment still available — for consumer gold loans alongside the new EMI products introduced in response to customer demand.
• Existing MSME/vehicle loan personnel leveraged — for cash flow assessment skills in underwriting income-generating gold loans.

500 New Branches Planned; Gold Loan Share Targeted at 75-80% of AUM

• Target of 500 new gold loan branches in FY 2026-2027 — only 10 added in Q1 FY 2026-2027; management expects activity to pick up in Q2 FY 2026-2027 following removal of RBI's prior approval requirement for branch expansion.
• ~60% of new branches in South & Central India — covering five South Indian states plus Maharashtra; ~20% in Eastern states (Bihar, West Bengal, Orissa), balance across the rest of India.
• Strategic priority: gold loans at 75-80% of consolidated AUM — with secured lending (mortgage-based MSME, affordable housing) as the primary non-gold focus.
• Microfinance portfolio capped at 8-10% of consolidated AUM — management intends to contain it at this level, growing in line with overall growth while prioritising asset quality.
• No vehicle loan disbursements in FY 2026-2027 — management may reconsider in FY 2027-2028; collections are currently the priority for the vehicle finance segment.
• Opex-to-AUM ratio steadily declining — as AUM per branch grows; management expects further improvement.

Microfinance Swings to Profit; Vehicle Finance Remains Under Pressure

• Ashirvad Microfinance AUM of Rs.7,188 Cr — up 5.8% QoQ and 7.2% YoY; PAT of Rs.21 Cr in Q1 FY 2026-2027, swinging from a Rs.269 Cr loss in Q1 FY 2025-2026.
• Ashirvad's net NPA stood at 1.4% — with CRAR at 31%; provisions increased in Q1 FY 2026-2027 vs Q4 FY 2025-2026, with management describing the Q1 level as a more representative normalized run-rate.
• Ashirvad's gold loan book now over 30% of portfolio — giving management leverage to renegotiate cost of borrowing with lenders; active discussions are underway.
• Vehicle finance AUM declined 14.3% QoQ — to Rs.2,562 Cr; GNPA remained elevated at 13.3% (vs 10.4% in the prior quarter).
• MSME loan book of Rs.3,303 Cr — with GNPA improving to 5.9% from 7.1% in the prior quarter.
• Manappuram Housing Finance began lending in Q1 FY 2026-2027 — pursuing both on-balance-sheet underwriting and co-lending arrangements with the parent company and banks.

25-30% Gold Loan Growth; RoE Target of ~18% in 3 Years

• Full-year FY 2026-2027 gold loan growth guided at 25-30% — driven by seasonal trends and branch expansion, independent of gold price movements.
• Medium-term RoA target of 3.5-4% — and RoE target of 15-18%, with management expecting "RoE expected to reach ~18% in 3 years" (by FY 2029-2030).
• Customer profile shifting towards business/MSME borrowers — management cited "government policy to monetize idle gold" and "RBI liberalization of branch expansion for gold loan NBFCs" as key drivers.
• Blended gold loan yield expected around 18% over the next one year — through FY 2027-2028, despite the increasing share of higher-ticket loans (above Rs.3 lakh now ~49% of portfolio).
• Monthly staff attrition moderated to 2-2.5% — management does not expect worsening despite heightened industry competition.
• New CEO Mr. Ashish Singh to join by 1 Jan 2027 — bringing 25 years of experience across NBFCs (Fullerton India) and banks, with expertise in retail lending and liabilities.
• Microfinance disbursement guided at Rs.400-500 Cr (period unspecified) — mortgage-based lending showing signs of recovery.