Manappuram Finance gains over 2% post Q1; brokerages bullish on AUM growth

Manappuram Finance Q1 results review: Manappuram Finance reported its Q1FY27 results after market hours on Tuesday, delivering strong performance for the April–June quarter (Q1FY27). The NBFC company’s earnings were supported by robust growth in gold loan segment. 

The NBFC’s counter surged on Wednesday. At 9:17 AM, Manappuram Finance’s share price was trading 0.36 per cent higher at ₹361.85 per share on NSE. In comparison, Nifty 50 was down 0.29 per cent at 24,401.40. In intraday trade, the stock gained 2.7 per cent to touch the day’s high at ₹369.95 per share.

Manappuram Finance Q1 results highlights:

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  Manappuram Finance reported consolidated profit of Rs 585 crore for the first quarter ended June 30, 2026, compared to a profit of Rs 132 crore in the corresponding quarter of the previous year.
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  Total income rose to Rs 3,040 crore for the quarter under review from Rs 2,265 crore in the April-June quarter of FY26
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  Net interest income (NII) rose 28.1 per cent year-on-year to ₹1,723.8 crore, from ₹1,345.3 crore in the year-ago period.
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  The firm also reported a 57.2 per cent year-on-year growth in assets under management to ₹69,635 crore during the June quarter. 
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  Gold loan AUM reached ₹57,006 crore in Q1 FY27, registering 97.9 per cent year-on-year growth. Non-gold loan businesses accounted for 18.14 per cent of the total AUM.

Brokerages’ view on Manappuram Finance post Q1 Results

Nirmal Bang

The brokerage noted that Manappuram Finance reported a strong 1QFY27 performance, with standalone PAT rising 40.7 per cent Y-o-Y, supported by stronger AUM growth, margin recovery, lower credit costs and disciplined operating expenses, while NII increased 32.6 per cent Y-o-Y.

It added that Gold loan AUM grew 12 per cent Q-o-Q and accounted for 90 per cent of standalone AUM, with 320,000 new customers added during the quarter, while management guided for 25–30 per cent gold loan growth in FY27 and plans to open 500 new branches. 

Nirmal Bang maintained its ‘Hold’ rating with a target price of ₹375, noting that the improving returns profile is largely reflected in the current valuation.

Dam Capital

The brokerage noted that the company reported healthy gold loan growth despite yield inch-up. “Looking at internals, the tonnage and customer growth have also been pretty strong and relatively better vs peers. Asset quality was largely steady with benign credit cost despite a one-off,” it said. Overall earnings were 15 per cent above the consensus estimate and “we expect MFI earnings to improve, which is resulting in a full-year earnings upgrade of 15 per cent for FY27 and FY28.”

The brokerage noted that at current levels, Manappuram Finance trades at 1.65 times its estimated FY28 book value and around 12 times FY28 estimated earnings. Dam Capital expects strong earnings and AUM growth, with RoA around 3 per cent and RoE in the mid-teens. It has set a target price of ₹400, implying around 11 per cent upside from the current level.    Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.