Manappuram Finance Ltd Q2 PAT rises 223% to ₹701 crore

Manappuram Finance Ltd reported consolidated profit after tax of ₹701 crore in Q2 FY27, up 222.9% year on year from ₹217 crore, supported by a 92.5% increase in gold-loan assets under management to ₹60,640 crore. The September-quarter performance also included an interim dividend of ₹1 per equity share.

What did Manappuram Finance Ltd report for Q2 FY27?

Manappuram Finance Ltd reported a sharp rise in consolidated earnings for the quarter ended September 2026, with PAT before other comprehensive income and minority interest reaching ₹701 crore. Profit was also 20% higher sequentially than ₹585 crore reported in Q1 FY27. Consolidated revenue from operations was reported at ₹3,351.55 crore, representing 47.4% year-on-year growth and 10.5% sequential growth.

The company’s investor presentation placed consolidated revenue from operations at ₹3,356 crore, up 46.2% year on year, reflecting a small presentation-level difference from the results summary. The filing also reported consolidated EBITDA of ₹2,380 crore against ₹1,256 crore a year earlier, with EBITDA margin increasing to 71% from 55%. For a lending business, Manappuram Finance separately reported pre-provisioning profit of ₹1,245 crore, up 75.5% year on year.

Which business lines drove Manappuram Finance's earnings growth?

Gold loans were the principal driver of Manappuram Finance's growth, with gold-loan AUM rising 92.5% year on year and 6.4% quarter on quarter to ₹60,640 crore at the end of September 2026. Consolidated AUM rose 60.1% year on year and 5.3% sequentially to ₹73,303 crore, indicating that the gold-loan book accounted for most of the expansion.

The company reported consolidated net interest income of ₹1,976 crore, up 39.1% year on year. Operating expenses grew 6.2%, substantially slower than AUM growth, while pre-provisioning profit increased 75.5%. These reported metrics explain the improvement in profitability and return ratios during the quarter, with return on assets at 3.9% and return on equity at 16.5%, compared with ROE of 6.9% in Q2 FY26.

How did the standalone business perform in the September quarter?

Manappuram Finance's standalone revenue was ₹2,833.93 crore in Q2 FY27, compared with ₹1,820.03 crore a year earlier, a rise of 55.7%. Standalone EBITDA increased 75.4% to ₹2,120.38 crore, while EBITDA margin expanded by 839 basis points to 74.82% from 66.43%.

Standalone PAT rose 76.9% year on year to ₹664.75 crore. The standalone AUM reached ₹63,733 crore, up 68.5% from a year earlier. For the first half of FY27, standalone PAT was ₹1,217 crore, a 58.4% increase year on year. The standalone business therefore remained the main contributor to group earnings even as the consolidated numbers also reflected improvement at subsidiaries.

What was the contribution from Asirvad Micro Finance and the balance sheet?

Asirvad Micro Finance, a subsidiary of Manappuram Finance, reported PAT of ₹32 crore in Q2 FY27, compared with a loss of ₹168 crore in the corresponding quarter of FY26. Its AUM increased 28.4% year on year to ₹7,919 crore. The reported turnaround followed stricter underwriting checks and a reduction in multi-lender exposure among borrowers.

The results also included disclosures that Asirvad Micro Finance had breached certain PAR 90 and ROE covenants. The limited review reports carried unmodified conclusions. At the consolidated level, cash and bank balances rose 52.3% year on year to ₹3,821 crore, while borrowings increased 72.7% to ₹65,168 crore alongside the expansion in AUM. The capital to risk-weighted assets ratio stood at 22.4%.

What does the dividend announcement mean for shareholders?

Manappuram Finance declared a second interim dividend of ₹1 per equity share for FY27, equivalent to 50% of the ₹2 face value. The company fixed November 18, 2026 as the record date for determining eligible shareholders. The declaration accompanied the Q2 results and does not change the reported quarterly profit figures.

For investors, the quarter showed stronger earnings, rapid gold-loan portfolio growth and improved reported return ratios. It also highlighted areas that remain relevant for monitoring, including the pace of borrowing growth, Stage 2 asset trends cited in the earnings commentary, and the disclosed covenant breaches at Asirvad Micro Finance. The company also noted that a loss on sale to an asset reconstruction company was retrospectively reclassified from revenue from operations to loan losses and provisions.

Conclusion

Manappuram Finance's Q2 FY27 results were led by the scale-up of its gold-loan franchise, which helped consolidated PAT rise to ₹701 crore and AUM reach ₹73,303 crore. The improvement in pre-provisioning profit, return ratios and the return to profitability at Asirvad Micro Finance added to the quarter's reported earnings growth.

Investors will next watch whether gold-loan AUM continues to expand at a similar pace, how funding costs and borrowings develop, and the progress on asset-quality and covenant-related disclosures at Asirvad Micro Finance. Shareholders eligible on the November 18, 2026 record date will also receive the declared ₹1 interim dividend.