Three major brokerages have issued contrasting views on Manappuram Finance , reflecting a nuanced picture of the non-banking financial company's recent performance and strategic direction. While gold loan growth has emerged as a consistent positive across all three assessments, divergent views on profitability, yield trajectory, and non-gold segment visibility have resulted in ratings spanning from Hold to Buy, with target prices ranging from ₹270 to ₹360. The company has also formally filed the transcript of its Q4FY26 financial results conference call, held on May 4, 2026, with stock exchanges on May 11, 2026, making it publicly available on its website. Adding further context, management shared detailed forward-looking guidance across key business segments during the concall.

Analyst Ratings Overview

Morgan Stanley has maintained an Equal-weight rating with a target price of ₹270, citing a balanced outlook underpinned by both strengths and uncertainties. The brokerage acknowledged strong gold loan growth of +31% QoQ and noted positive developments in yield normalization and a calibrated expansion strategy. However, Morgan Stanley flagged limited visibility in the company's non-gold segments as a key concern. Management guidance was noted as largely qualitative, with a 15% ROE aspiration by FY28 being the primary forward-looking benchmark.

CLSA has assigned a Hold rating with a target price of ₹305, reflecting a cautious stance following a weaker-than-expected quarterly performance. The brokerage highlighted that 4QFY26 PAT missed estimates by –14%, attributing the shortfall to net interest income (NII) pressure and elevated provisions, including a one-off write-off in the vehicle finance segment. Despite these headwinds, CLSA acknowledged strong gold loan growth of approximately ~30% QoQ. The brokerage noted a sharp yield decline of approximately ~400 basis points over four quarters, though it indicated that yields are now seen as bottoming out.

Jefferies has taken the most constructive view, upgrading Manappuram Finance to Buy with a target price of ₹360. The brokerage pointed to a Q4 PAT beat of +69% QoQ, driven primarily by a provisions release, as a key positive. AUM growth of +22% QoQ and improving gold loan demand further supported the upgrade. Jefferies projected approximately ~2.6x profit growth and ROE rising to approximately ~13% over FY26–28, with valuations seen as reasonable at approximately ~1.6x FY27 book value.

The following table summarizes the key parameters from each brokerage's assessment:

Management Concall Guidance

Management provided detailed guidance across multiple business segments during the concall held on May 4, 2026. On profitability, credit costs are expected to improve in subsequent quarters, aiding PAT accretion, particularly with continued improvement in the Asirvad portfolio and non-gold segments. Gold loan yields are expected to stabilize between 17.5% to 18%, with no further decline anticipated, while consolidated ROE is targeted to improve to 13–16% over the next one to two years, alongside an ROA target of over 15%.

The following table captures the key guidance parameters shared by management:

Segment-Wise Outlook

On the microfinance front, the business is expected to stabilize progressively with a focus on sustainable growth and improved risk-adjusted returns. The new book, currently at 59% of the portfolio, is targeted to reach 75% by Q1 FY27. For gold loans, management expects steady momentum in FY27, driven by consumer demand and new product offerings covering consumption and income-generating loans, supported by plans to open 500–550 new branches.

On consolidated AUM, management guided for growth at a reasonably good level, exceeding the previous year's volume growth. Non-gold portfolios are also expected to show improvement, attributed to new leadership and focused operational actions. The range of analyst views, combined with management's forward guidance and the publicly filed concall transcript, underscores the complexity of Manappuram Finance's current operating environment, where strong gold loan momentum is being weighed against profitability pressures and segment-specific recovery timelines.

Manappuram Finance Limited's Board of Directors approved the audited standalone and consolidated financial results for the fourth quarter and financial year ended March 31, 2026, at its meeting held on May 4, 2026. The Board also declared an interim dividend of Rs 0.50 per equity share, representing 25% of the face value of Rs 2 each. The record date for dividend eligibility has been fixed as Monday, May 11, 2026. The statement of audited standalone and consolidated financial results was subsequently published in Business Line (in English language) and Mathrubhumi (in Malayalam language) on May 05, 2026, in accordance with Regulation 33 read with Regulation 47(1) and Regulation 52(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The audio recording of the Q4 and financial year ended March 31, 2026 Results Conference Call, held on May 4, 2026, has been uploaded on the company's website at www.manappuram.com .

The joint statutory auditors, Chokshi & Chokshi LLP and KKC & Associates LLP, both based in Mumbai, have issued audit reports with unmodified opinions on the standalone and consolidated financial results for the year ended March 31, 2026. The auditors confirmed that the financial results give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013.

Q4 Consolidated Financial Performance

Manappuram Finance reported a strong turnaround in its consolidated results for Q4, with net profit rising to Rs 4.04 billion compared to a loss of Rs 2.03 billion in the same period last year. Consolidated revenue for Q4 stood at Rs 26.13 billion versus Rs 23.6 billion on a year-on-year basis, reflecting healthy top-line growth.

Segment-Wise Consolidated Performance

The Group operates across two reportable segments — Gold Loan and Others, and Microfinance — as identified under Indian Accounting Standard 108. The following table presents segment-wise revenue and results for the quarter and year ended March 31, 2026:

Key Standalone Financial Metrics

The company also reported strong standalone financial performance. The following table summarises the key standalone metrics:

The Board meeting commenced at 11:00 a.m. and concluded at 4:15 p.m. on May 4, 2026. The financial results have been reviewed and recommended by the Audit Committee and approved by the Board. The company has maintained requisite full asset cover by way of floating charge on loan receivables and other unencumbered assets on its Secured Listed Non-Convertible Debentures as at March 31, 2026.

Borrowings and Compliance

The company provided details of outstanding qualified borrowings and incremental qualified borrowings for FY 2026. The following table presents the borrowing details:

The company has disclosed compliance with various SEBI regulations regarding utilisation of issue proceeds and security cover for non-convertible securities. The consolidated financial results include audited financial statements of four subsidiaries — Manappuram Home Finance Limited, Manappuram Insurance Brokers Limited, Asirvad Micro Finance Limited, and Manappuram Comotech and Consultants Limited — with total assets of Rs 10,737.57 crores as at March 31, 2026. These four subsidiaries reported total revenues of Rs 471.63 crores and Rs 1,935.60 crores (before consolidation adjustment), total net profit/(loss) of Rs 30.27 crores and Rs (519.53) crores (before consolidation adjustment), and total comprehensive income/(loss) of Rs 26.05 crores and Rs (524.46) crores (before consolidation adjustment) for the quarter ended and year ended March 31, 2026 respectively.

Loan Transfers and Asset Quality

During the quarter and year ended March 31, 2026, the company undertook loan transfers through assignment. Key details are as follows:

The transfers were executed via deed of assignment with Asset Reconstruction Company (India) Limited (ARCIL) and India SME Asset Reconstruction Company Ltd (ISARC). The company recognised a loss of Rs 12.65 crores and Rs 17.06 crores for transfers to ARCIL and ISARC respectively. The company also subscribed to security receipts issued by ARCIL-Trust-2026-002 amounting to Rs 32.26 crores. During Q4 of FY 2025-26, the company undertook a technical write-off in respect of certain identified gross exposures amounting to Rs 136.94 crores related to the Vehicle Finance portfolio under the Doubtful-1 category of NPA. The resultant impact on the statement of profit and loss, net of provision, was Rs 84.01 crores.

Subsidiary and Capital Structure Developments

Several significant corporate actions were undertaken during the period. Pursuant to the shareholders agreement dated March 20, 2025, the company received on March 27, 2026, a total of Rs 2,192.47 crores from BC Asia Investments XXV Limited towards the allotment of 9,29,01,373 equity shares at a price of Rs 236 per share, whereby the holding of the aforesaid investor stands at 9.89%. Additionally, a total of Rs 548.11 crores was received from BC Asia Investments XIV Limited against the allotment of 9,29,01,373 share warrants at a price of Rs 236 per share warrant, representing 25% of the share warrant price.

The company subscribed towards a rights issue of 17,91,88,333 equity shares of its subsidiary Asirvad Microfinance Private Limited at a price of Rs 44 per share for a total amount of Rs 788.43 crores, allotted subsequent to March 31, 2026, increasing the total holding in the said subsidiary to 98.97%. The company also subscribed towards a rights issue of equity shares of its wholly owned subsidiary Manappuram Home Finance at par value of Rs 10 per share amounting to Rs 150 crores on April 6, 2026. Furthermore, the authorised share capital of the company has been increased from Rs 200 crore to Rs 300 crore, now comprising 148,00,00,000 equity shares of Rs 2 each and 4,00,000 redeemable preference shares of Rs 100 each. The Board of Directors also declared three interim dividends aggregating to Rs 1.50 per equity share having face value of Rs 2 each for the financial year 2025-26, which were paid, in addition to the fourth interim dividend of Rs 0.50 per equity share declared at the May 4, 2026 meeting.