Manappuram Finance Q2 FY26 Net Profit at ₹217.31 Crore; Interim Dividend Declared

Thrissur, October 30, 2025: Manappuram Finance Ltd (NSE: MANAPPURAM | BSE: 531213) reported a consolidated net profit of ₹217.31 crore for the quarter ended September 30, 2025 (Q2 FY26), marking a 62% year-on-year decline from ₹572.08 crore in the same period last year. The fall in profitability was largely driven by weaker income growth and higher provisioning in the microfinance segment.

The Board has declared a second interim dividend of ₹0.50 per share (25% of the face value of ₹2 each), with the record date set for November 7, 2025.

Key Financial Highlights

In Q2 FY26, the company reported a total income of ₹2,285.36 crore, showing a marginal sequential increase from ₹2,264.94 crore in Q1 FY26 but a decline from ₹2,637.14 crore in Q2 FY25. Net profit stood at ₹217.31 crore, improving sharply from ₹132.47 crore in the previous quarter, although significantly lower than ₹572.08 crore a year earlier, reflecting the impact of revenue moderation and higher provisioning costs.

Segment-wise Performance

The Gold Loan & Others segment remained the company’s primary growth driver, posting a revenue of ₹1,991.44 crore and a profit before tax (PBT) of ₹516.82 crore in Q2 FY26. In contrast, the Microfinance segment reported a revenue decline to ₹293.92 crore, resulting in a loss of ₹214.82 crore, primarily due to elevated provisioning and asset impairments.

Balance Sheet Snapshot

As of September 30, 2025, the company reported total assets of ₹51,657.19 crore, up from ₹49,208.70 crore as of March 31, 2025. Total liabilities stood at ₹39,175.59 crore during the same period. The company recorded an operating cash outflow of ₹2,258 crore, indicating higher fund utilisation in operations.

Meanwhile, cash and cash equivalents amounted to ₹3,082.6 crore, and the total book debt stood at ₹29,641 crore, reflecting a moderate leverage position.

Dividend And Governance Updates

The Board of Directors has approved a second interim dividend of ₹0.50 per share for FY26, payable to shareholders whose names appear in the company’s records as of November 7, 2025. This follows the first interim dividend declared in August 2025.

The Board meeting commenced at 10:00 a.m. and concluded at 3:35 p.m. The company further confirmed its continued compliance with asset cover requirements for its secured listed non-convertible debentures (NCDs). As of the latest disclosure, the company’s Debt-Equity Ratio stands at 2.47x, while its Capital Adequacy Ratio is reported at 28.32%, reflecting a strong financial position.

Management Commentary

V. P. Nandakumar, the Chairman and Managing Director, said the company’s gold loan business stayed strong, even though the microfinance sector faced some tough times. He pointed out they’re sticking with their focus on asset quality and capital strength, backed by solid liquidity and a good mix of funding sources.

As of 30 October 2025, the share price of Manappuram Finance Ltd closed at ₹275.75, down 0.80 or 0.29% from its previous close of ₹276.55. The share traded between ₹272.35 and ₹280.50, with a high of ₹280.50 and a low of ₹272.35.

REF:https://nsearchives.nseindia.com/corporate/MANAPPURAM_30102025155615_MAFIL_Outcome_of_Board_Meeting_final.pdf

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