Manba Finance Ltd Q2 FY27 Profit Rises 20.2% as AUM Grows

Manba Finance Ltd reported a 20.2% year-on-year rise in Q2 FY27 profit to ₹13.7 crore, supported by higher lending activity and two-wheeler demand. Revenue from operations increased 25.6% to ₹97.7 crore, while assets under management reached ₹1,811 crore as of September 30, 2026.

What did Manba Finance report for Q2 FY27?

Manba Finance reported higher revenue, net interest income and profit for the quarter ended September 30, 2026. Revenue from operations rose to ₹97.7 crore from ₹77.8 crore in the corresponding quarter of the previous year. Profit after tax increased to ₹13.7 crore from the year-earlier level, representing 20.2% growth.

Management said net interest income rose 40% year on year to ₹52 crore during the quarter. For the first half of FY27, net interest income was ₹94 crore, up 39%, while profit after tax grew 28% to ₹27 crore. The company attributed the operating momentum to loan demand, particularly in vehicle finance, and expansion across geographies.

How did lending activity support Manba Finance's results?

Higher disbursements supported Manba Finance's loan-book expansion in the quarter. The company disbursed ₹267 crore in Q2 FY27, compared with ₹233 crore in the corresponding quarter a year earlier. First-half disbursements reached ₹493 crore, against ₹398 crore in the prior-year period.

The company offers loans for new two-wheelers and three-wheelers, used cars, MSMEs, personal requirements, top-up facilities, used two-wheelers and battery replacements. Its exposure to vehicle-linked lending makes registration trends relevant to business volumes. Management said auto-sector registrations remained healthy, providing a supportive setting for auto financiers.

Two-wheeler registrations were approximately 53 lakh units during the second quarter, according to management's comments on the call. August and September recorded their highest-ever volumes, while three-wheeler registrations crossed 33.9 lakh units, aided by demand for electric models. These trends indicate a broader pool of vehicle buyers that can require financing, although registrations do not directly translate into Manba Finance disbursements.

What does the Q2 update show about asset quality and funding?

Manba Finance said its portfolio quality and capital position remained stable while it expanded lending. Stage 1 assets stood at ₹1,710 crore as of September 2026, representing 94.44% of the total portfolio. The company also held expected credit loss provisions of ₹23 crore, compared with a stated requirement of ₹13 crore.

The capital adequacy ratio was 24.69%, which management said was well above the regulatory requirement and provided room to support future growth. For an NBFC, capital and provisioning levels are important because they determine its ability to absorb potential credit losses and continue disbursing loans without undue balance-sheet pressure.

CARE Ratings upgraded the company's rating to A- with a stable outlook from BBB+ with a positive outlook. Management linked the upgrade to the scale of operations, a 36.33% compound annual growth rate in assets under management, and access to incremental funding at a lower cost. The company said its average cost of borrowings declined to 10.14%.

What guidance and financing plans did management discuss?

Manba Finance management reiterated FY27 growth guidance of around 30% to 35% during the earnings call. Managing Director Manish Shah said the company had achieved 20% growth in the first half, while the management team outlined continued focus on geographic expansion and vehicle-finance demand.

The company also referred to an expected capital infusion of about ₹100 crore through a preferential issue of equity and warrants. Management indicated that the proposed infusion, along with the rating upgrade, could support funding access and balance-sheet capacity. The call did not provide a completion date for the proposed capital raising in the information disclosed.

For investors, the key financial developments were the faster growth in net interest income than in reported profit, a 21% increase in assets under management and a lower stated borrowing cost. The difference in growth rates also underscores the importance of monitoring credit costs, operating expenses and asset quality as the loan book expands.

How does Manba Finance's performance affect investors and customers?

The results provide a measure of the operating environment for retail-focused vehicle financiers. Rising disbursements and assets under management show that Manba Finance continued to add loans during a period of strong vehicle registration activity. Customers in its operating markets may benefit from the availability of financing products across two-wheelers, three-wheelers, used vehicles and selected non-vehicle categories.

For shareholders, the quarter highlighted growth alongside a sizeable provision buffer and capital ratio. However, the company did not disclose a share-price reaction in the earnings-call material. Investors will continue to assess whether loan-book expansion, funding costs and credit quality remain aligned with management's stated growth plan.

Conclusion

Manba Finance's Q2 FY27 performance showed higher revenue, net interest income and profit, with assets under management reaching ₹1,811 crore. Stronger vehicle demand, increased disbursements and improved funding access were the main operating factors cited by management, while Stage 1 assets accounted for 94.44% of the portfolio.

The next developments to watch are progress toward the company's 30% to 35% FY27 growth guidance and the proposed approximately ₹100 crore equity and warrant infusion. Updates on borrowing costs, portfolio quality and disbursement growth will also be relevant as the company moves through the second half of FY27.