AI-generated · cited to primary sources · not investment advice
Manappuram Fin. (531213) Nov 2025 Filing Analysis
Does management do what it says?
The standalone cost of funds reduced by 30 basis points (from 9.1% to 8.8%) in Q3 FY26, significantly exceeding the 12 bps target. (2 exceeded across 2 tracked commitments)
“This quarter, we have seen a 12 basis points reduction, and we expect the momentum to continue at least for the next two quarters.”
Asirvad Microfinance reported a PAT of INR 13 Cr in Q4 FY26, successfully returning to profitability after a loss of INR 156 Cr in Q3 FY26. (2 met across 2 tracked commitments)
“So that way, we expected the losses to come down further and Q4 at least, I think we should see the financials as green.”
The company has successfully gone live with co-lending partnerships, including Asirvad, and expects more partners to go live shortly. (1 met across 1 tracked commitment)
“We are planning for colending also, where Asirvad participation would be 10% to 20%.”
Gold loan yields are trending downwards towards the target range, reaching 19.7% in Q2 FY26 from 20.5% in the previous quarter. (1 in progress, 2 met, 1 exceeded across 4 tracked commitments)
“We expect that to be somewhere around 18.5 similar to the industry. But we will be able to protect our margin because our margin and borrowing cost is coming down”
See the full cited Management analysis of Manappuram Fin.
What could break the thesis?
The risk remains high but management is actively re-strategizing. GNPA for the MSME/Vehicle segment is at 5%, but higher delinquency in specific sub-segments like farm equipment and two-wheelers led to slow disbursements and increased provisioning. (2 stable, 1 intensifying)
“Because of the higher delinquency, the business disbursement was slow during the quarter. The focus is more on collection and we have increased the provision coverage on vehicle finance to 24%.”
See the full cited Risk analysis of Manappuram Fin.
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