Manba Finance FY26: Growth with stable asset quality

Manba Finance closed FY26 with a larger footprint and a bigger balance sheet, while keeping headline asset quality broadly stable. The NBFC, focused primarily on two-wheeler and three-wheeler loans, reported FY26 total revenue of INR 3,302 million (about INR 330 crore), net interest income (NII) of INR 1,616 million (about INR 162 crore), and profit after tax (PAT) of INR 454 million (about INR 45 crore). Assets under management (AUM) rose to INR 17,127 million (about INR 1,713 crore), and annual disbursements reached INR 9,769 million (about INR 977 crore).

The year was also marked by rapid distribution expansion. Locations increased to 130 from 73 in FY25, while the dealer network grew to 1,596 from 1,216. The company attributes growth to deeper penetration in existing markets and a push into newer states such as Uttar Pradesh and Madhya Pradesh, alongside continued scale-up in Rajasthan.

FY26 performance: growth with a widening operating base

On core trends, FY26 showed a continuation of the multi-year ramp-up. AUM grew 28.6% year on year, NII rose 24.3%, and PAT expanded 20.1%. Over FY23 to FY26, the company reported AUM rising from INR 6,337 million to INR 17,127 million, and total revenue increasing from INR 1,338 million to INR 3,302 million.

Operating scale, however, required higher costs. In the annual income statement, FY26 interest income increased 31.8% year on year, while finance cost grew faster at 40.9%. Operating expenses rose 25.5% year on year, reflecting branch and manpower expansion.

In Q4 FY26, Manba reported total revenue of INR 934 million, NII of INR 498 million, and PAT of INR 111 million. Management also highlighted quarterly disbursement of INR 2,308 million, supported by expansion in Uttar Pradesh, Madhya Pradesh and Rajasthan.

Portfolio mix: two-wheelers still dominate, diversification is gradual

Manba’s loan book remains heavily tilted toward two-wheelers, but management emphasized that concentration has reduced over time. On the earnings call, management stated that two-wheelers were around 97% of the portfolio three years ago, and have come down to about 84%.

For FY26, management disclosed the product mix as:

• Two-wheeler: 84.5%
• Small business loan: 4.93%
• Top-up (personal) loan: 4.70%
• Three-wheeler: 3.28%
• Used vehicle loan: 1.50%

The near-term playbook is to keep scaling the core two-wheeler franchise while building newer product lines in a measured way. During the year, the company highlighted strengthening of the used two-wheeler ecosystem through dealer onboarding, and continued build-out in used cars with separate sales, credit and collections teams.

Management also discussed electric vehicles as part of the mix. They stated the EV two-wheeler portfolio mirrors industry penetration and has shown better collection performance so far, while EV three-wheelers are treated cautiously due to higher operational and depreciation risks.

Asset quality and provisioning: stable metrics, higher buffers

In FY26, gross NPA was 3.33% and net NPA 2.46%. The company also provided a stage-wise asset view: Stage 3 assets were INR 570 million (3.33% of gross assets) as of March 2026, and provisions stood at INR 230 million.

Management framed provisioning as a deliberate balance sheet strengthening measure. On the call, they said the provision coverage ratio increased from 24% to 26% to prepare for unexpected shocks, despite credit loss trends being around 1% to 1.25%.

The company also emphasized collections infrastructure. The presentation described a three-tier collections system, comprising tele-calling, field collections and legal recovery, with an in-house legal team and escalation steps that include potential seizure after 90 days past due.

Funding and cost of borrowings: diversification continues

Manba’s FY26 cost of borrowings was reported at 10.64%, slightly lower than 10.80% in FY25. Borrowings increased in line with balance sheet growth. In the presentation, borrowings distribution rose from INR 6,468 million in FY25 to INR 8,576 million in FY26.

Management highlighted broader lender relationships, including funding from multiple public sector banks, private banks, and NBFCs. In Q4 FY26, the company said it raised INR 4,197 million, including a term loan sanction from SBI, an NCD issuance, and onboarding of new lending partners. For full-year FY26, management indicated total fund raise of INR 12,650 million.

Strategy: expansion, digitization, OEM tie-ups and secured MSME LAP

The FY26 presentation outlined three strategic themes: expanding market presence, investing in technology, and improving brand recall.

On growth, Manba expanded to 130 locations across 6 states and increased the dealer network to 1,596. The company intends to further penetrate existing locations.

On digitization, management spoke about paperless onboarding, a web-based app for business correspondents, Salesforce Marketing Cloud integration, WhatsApp-based messaging, and payments and disbursement integrations.

The company also highlighted a strategic MoU with TVS Motor Company to finance TVS three-wheelers pan-India, and discussed how this is helping dealer onboarding and business sourcing.

A notable incremental initiative is MSME LAP. In the call, management said the product has started in Mumbai and Pune, with yields of around 18% to 19% and LTV up to 60% depending on customer capacity. Management also noted planned expansion to Nashik and Ahmedabad.

Key takeaways

Manba Finance’s FY26 results reflect a lender scaling rapidly through distribution expansion, while trying to keep risk metrics stable through underwriting discipline and collections execution. The portfolio is still dominated by two-wheelers, but management is openly focused on diversification via three-wheelers, used vehicles, and secured MSME LAP. Forward commentary pointed to a 25% to 30% AUM growth philosophy, continued geographic expansion, and ongoing borrowing cost optimization, alongside a stated preference to keep debt to equity below 4 times.