Manba Finance has allotted 9,000 non-convertible debentures (NCDs) worth ₹90 crore on a private placement basis. The allotment was made on August 24, 2026, following approval by the company's Finance Committee.

NCD allotment details

The issuance comprises rated, unsubordinated, listed, secured, transferable, and redeemable NCDs. Each debenture has a face value of ₹1,00,000. The instruments carry a coupon rate of 10.60% and have a tenor of 27 months and 4 days, maturing on November 28, 2028.

Security and listing

The NCDs are secured by a first-ranking charge on identified receivables, known as hypothecated book debts. The value of these hypothecated assets will at all times be equal to 1.1 times the outstanding amount of the debentures. The securities are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited.

Interest payment schedule

Interest and principal payments are scheduled quarterly. The payment dates are set for November 28, 2026, followed by February 28, May 28, and August 28 of each subsequent year until maturity in November 2028. In case of default in payment for more than three months, a penalty interest of 2.00% over the coupon rate will apply until the default is cured.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE939X01013/bd9c7943-dc08-43f2-96f3-fd9e552fd690.pdf

Manba Finance announced plans to raise ₹100 crore through a preferential share issue by September or October 2026 to support its aggressive asset under management (AUM) expansion. The Mumbai-based non-banking financial company (NBFC) aims for 35% to 40% AUM growth in FY27, driven by diversification into personal loans, top-up loans, and secured MSME lending. This capital infusion addresses the dilution of its capital adequacy ratio (CRAR) from 29.81% in FY25 to 24.40% as of June 30, 2026, ensuring sufficient headroom for scaling operations while maintaining industry-low non-performing assets (NPAs).

The Board of Directors approved the unaudited financial results for Q1FY27 on July 27, 2026, with statutory auditors Krshna & Associates conducting a limited review pursuant to Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also confirmed compliance with Regulation 54 via a Security Cover Certificate and reported no deviations in the utilization of issue proceeds under Regulation 52(7) and 52(7A). The trading window for designated persons reopened on July 30, 2026.

Financial Performance and Capital Strategy

Net profit after tax (PAT) rose 36% year-on-year to ₹13.26 crore in Q1FY27, supported by a 36% surge in net interest income to ₹42 crore. Total revenue from operations stood at ₹92.61 crore, slightly down from ₹93.41 crore in Q4FY26 but up significantly from ₹67.00 crore in Q1FY26. Disbursements grew 37% year-on-year to ₹2,263 million, reflecting strong demand across vehicle finance portfolios.

Managing Director Manish Shah stated that the upcoming ₹100 crore raise via preference shares is critical to managing the growth pipeline. CFO Jay Mota noted that the average cost of borrowing stands at 10.86%, with funding mix comprising 60% term loans, 25% NCDs, and the remainder in PTC and CC balances. The company maintained healthy liquidity of ₹200 crore as of June 30, 2026, having raised ₹100–150 crore during the quarter.

Strategic Diversification and Expansion

Manba Finance is actively reducing its reliance on two-wheeler loans, which currently account for 84.1% of the portfolio. Management targets reducing this share to 65% within three years by scaling personal loans, top-up loans, used two-wheeler loans, and MSME Loan Against Property (LAP). The MSME LAP segment, recently launched, has already disbursed ₹150 crore with an AUM exceeding ₹100 crore, targeting ticket sizes between ₹8 lakh and ₹20 lakh.

Geographically, the company entered South India through a partnership with Sreesastha (Nammaloan), commencing operations in Karnataka with plans for Tamil Nadu later in FY27. Initial AUM expectations for this vertical are ₹60–75 crore in FY27, with break-even projected in 6–9 months. Additionally, Manba launched battery replacement financing for electric three-wheelers, addressing recurring costs for e-rickshaw operators with a ₹60,000 ticket size product.

What the Numbers Show

The divergence between stable revenue and surging profitability highlights improved operational efficiency, particularly through high-yield product mix shifts. While two-wheeler loans dominate current volumes, the strategic push into personal and top-up loans—where 30% of future lending is expected to carry higher internal rates of return (IRR)—should bolster return on assets (ROA), targeted at 3.5% for FY27. Net interest margins are expected to remain in the 13%–14% range, supported by declining borrowing costs and rising lending yields. The disciplined approach to credit underwriting, evidenced by Gross Stage 3 NPAs improving to 3.41% and an excess provisioning buffer of ₹17.43 crore over IRAC norms, positions the company to scale without compromising asset quality.