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.

Manappuram Finance Limited has announced that its Board of Directors will convene on Thursday, January 29, 2026, to review the company's quarterly financial performance and consider dividend distribution. The meeting will focus on approving unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Board Meeting Agenda

The primary objectives of the upcoming board meeting include comprehensive review of the company's financial performance and strategic decisions regarding shareholder returns.

Regulatory Compliance and Trading Window Closure

The company has issued this notification in strict adherence to regulatory requirements under SEBI guidelines. The announcement was made pursuant to Regulation 29(1) read with Regulation 50(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As part of insider trading prevention measures, the trading window for dealing in company securities will remain closed until specific conditions are met. The closure period extends until 48 hours after the declaration of financial results at the board meeting.

Stock Exchange Communications

Manappuram Finance Limited has formally communicated this development to multiple stock exchanges where its securities are listed. The company secretary, Manoj Kumar V R, signed and submitted the notification to ensure comprehensive market awareness.

The communication was sent to:

• BSE Limited (Scrip Code: 531213)
• National Stock Exchange of India Limited (Scrip Code: MANAPPURAM)
• India International Exchange (IFSC) Ltd

Corporate Governance Framework

The company operates under a robust 'Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons in Securities' adopted under SEBI (Prohibition of Insider Trading) Regulations, 2015. This framework ensures transparent and compliant trading practices while protecting investor interests and maintaining market integrity.

Investors and stakeholders can expect the financial results and dividend announcement following the board meeting conclusion on January 29, 2026, with trading activities resuming on February 2, 2026.