Manba Finance Limited, a prominent player in the financial sector, has taken a significant step towards strengthening its capital base. The company's Board of Directors has given the green light for issuing debt securities worth up to INR 200.00 crores through private placement, demonstrating its commitment to strategic financial planning.

Key Highlights of the Board Decision

• Approval Scope: The board has approved the issuance of various debt instruments, including Secured Non-Convertible Debentures, Perpetual Debt Instruments, and Unsecured Subordinated Non-Convertible Debentures.
• Issuance Method: The debt securities will be issued through private placement in one or more tranches.
• Authorization: The finance committee has been authorized to execute this debt issuance, showcasing the company's structured approach to financial management.

Board Meeting Details

The crucial decision was made during a board meeting held on September 22, 2025, at the company's corporate office. The meeting lasted for 30 minutes from 3:00 PM to 3:30 PM.

Implications for Manba Finance

This approval for debt securities issuance could have several implications for Manba Finance Limited:

1. Capital Infusion: The INR 200.00 crore debt issuance is likely to provide the company with additional capital for its operations and growth initiatives.
2. Flexible Financing: By approving various types of debt instruments, the company has given itself flexibility in terms of the nature and structure of the debt it can raise.
3. Strategic Growth: The decision suggests that Manba Finance might be gearing up for expansion or looking to strengthen its financial position in the market.

Market Communication

Following the board meeting, Manba Finance Limited promptly communicated the outcome to the National Stock Exchange of India Ltd. and BSE Limited, where its shares are listed. This transparent communication aligns with regulatory requirements and keeps investors informed about significant corporate decisions.

The company's proactive approach in seeking diverse funding options through debt securities issuance reflects its forward-thinking financial strategy. As Manba Finance moves forward with this decision, market observers will likely keep a close eye on how the company utilizes these funds to drive growth and enhance shareholder value.

Manba Finance Limited , a prominent non-banking financial company (NBFC), has reported robust financial performance for the first quarter of fiscal year 2026, demonstrating strong growth across key metrics.

Strong AUM and Disbursement Growth

The company's Assets Under Management (AUM) reached INR 1,415.00 crore, reflecting an impressive year-on-year growth of 43%. This substantial increase in AUM underscores Manba Finance's expanding market presence and effective growth strategies.

In Q1 FY26, Manba Finance achieved record disbursements of INR 165.00 crore, marking a 27% increase from INR 130.00 crore in Q1 FY25. This surge in disbursements indicates growing demand for the company's financial products and services.

Impressive Financial Performance

Manba Finance reported a significant improvement in its financial metrics:

• Net Interest Income (NII) grew by 38% to INR 31.00 crore
• Net Interest Margin (NIM) stood at a healthy 12.43%
• Profit After Tax (PAT) surged by 89% year-on-year to INR 10.00 crore

These figures demonstrate the company's ability to enhance profitability while expanding its loan book.

Expanded Network and Operational Footprint

The NBFC has significantly expanded its dealer network, growing by 77% to reach 1,258 dealers. Manba Finance now operates across 76 locations in 6 states, indicating a strategic geographical expansion to capture diverse market opportunities.

Asset Quality and Capital Adequacy

As of June 30, 2025, Manba Finance maintained a stable asset quality profile:

The Capital Adequacy Ratio remains well above regulatory requirements.

Strategic Initiatives and Future Outlook

Manba Finance has implemented several strategic initiatives to strengthen its business model:

1. Tightened credit standards by reducing loan-to-value ratios from January 2025
2. Introduced a new collection app to improve efficiency
3. Diversification plans include expanding into EV financing, three-wheelers, and used cars
4. Aim to keep unsecured loans below 10% of the total AUM

The management has set ambitious targets for the coming years:

• 30-35% AUM growth
• Projected PAT of INR 85.00-100.00 crore by FY27

Product Mix and Focus Areas

Two-wheeler loans continue to be the primary focus, comprising 82% of the total AUM. The company plans to diversify its portfolio while maintaining a cautious approach to unsecured lending.

Manish Shah, Managing Director of Manba Finance, commented during the earnings call, "We are pleased with our Q1 FY26 performance, which reflects our strategic initiatives and robust business model. Our focus on expanding our dealer network and geographical presence, coupled with prudent risk management, has yielded positive results."

The company's strong Q1 FY26 performance and strategic initiatives position Manba Finance for continued growth in the competitive NBFC sector. Investors and analysts will be keenly watching the company's progress in achieving its ambitious targets for FY27.