Manappuram Finance Limited's Board of Directors has approved an interim dividend of Rs 0.50 per equity share, representing 25% on the face value of Rs 2 each, with the record date set for February 6, 2026. The announcement came alongside the company's unaudited financial results for the quarter and nine months ended December 31, 2025.

Financial Performance Overview

The company's consolidated financial results for Q3FY26 showed mixed performance compared to the previous year. Net profit for the quarter declined to Rs 238.54 crores from Rs 278.46 crores in Q3FY24, representing a decrease from the prior year period.

Nine Months Performance

For the nine months ended December 31, 2025, the consolidated results showed total income of Rs 6,899.12 crores compared to Rs 7,711.69 crores in the corresponding period of the previous year. Net profit for the nine-month period was Rs 588.34 crores against Rs 1,407.04 crores in the previous year.

Segment Performance

The company operates through two main segments - Gold loan and others, and Micro Finance. The Gold loan segment generated revenue of Rs 2,057.56 crores in Q3FY26 compared to Rs 1,897.17 crores in Q3FY24. The Micro Finance segment reported revenue of Rs 301.33 crores versus Rs 665.46 crores in the previous year quarter.

Standalone Results

On a standalone basis, Manappuram Finance reported better performance with net profit of Rs 381.15 crores for Q3FY26 compared to Rs 453.39 crores in Q3FY24. Total income on standalone basis was Rs 1,921.88 crores for the quarter.

Dividend Details

The interim dividend will be paid to shareholders whose names appear as beneficial owners at the end of business hours on February 6, 2026, in the records of NSDL and CDSL for shares held in electronic form. For physical shares, the dividend will be paid to members whose names appear in the Register of Members as of the record date.

This marks the second interim dividend declared by the company for FY26, as the Board had previously declared an interim dividend of Rs 0.50 per share in October 2025, which was subsequently paid.

Regulatory Compliance

The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) 34 and comply with SEBI Listing Regulations. The company's joint statutory auditors, KKC & Associates LLP and Chokshi & Chokshi LLP, have conducted limited reviews and provided unmodified conclusions on the financial results.

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Manappuram Finance 's subsidiary Asirvad Microfinance Institution has reported significantly higher losses than anticipated in Q3FY26, according to a Morgan Stanley report. The microfinance arm's financial performance deteriorated substantially, raising concerns about operational efficiency and asset quality.

Financial Performance Overview

Asirvad MFI recorded an adjusted loss that exceeded market expectations by a considerable margin. The actual loss figures compared to estimates highlight the severity of the operational challenges faced by the microfinance institution.

Key Performance Challenges

The substantial loss was primarily driven by two critical factors that impacted the institution's profitability. Low Pre-Provision Operating Profit (PPOP) indicated weak operational performance, while increased provisions reflected deteriorating asset quality. These factors combined to create a challenging financial environment for the microfinance subsidiary.

The elevated credit costs became a significant burden on the institution's financial health. Higher provisions were necessitated by the deteriorating loan portfolio quality, which directly impacted the bottom line performance during the quarter.

Covenant Compliance Issues

The financial stress experienced by Asirvad MFI had broader implications beyond operational performance. Rising Net Non-Performing Assets (NNPA) levels created additional pressure on the institution's financial metrics. By December 31, 2025, these deteriorating financial indicators resulted in the microfinance institution becoming non-compliant with lender covenants.

This covenant breach represents a significant development that could potentially impact the subsidiary's access to funding and operational flexibility. The non-compliance status may require immediate attention and corrective measures to restore financial stability and maintain lender relationships.