Decline of 11% in Q1 FY26 standalone net profit for Manappuram Finance amounts to ₹392 crores
Manappuram Finance Ltd (MFL) has released its financial results for the first quarter of the current financial year, revealing a mixed performance compared to the same period last year.
The gold loan company reported a 11% year-on-year (y-o-y) drop in its first quarter standalone net profit to ₹392 crore, marking a significant decrease from the ₹441 crore logged in the year ago period.
Despite the decline in net profit, the total income of Manappuram Finance grew about 7.60% y-o-y to ₹1,745 crore. This growth can be attributed to the increase in the average gold loan ticket size, which rose to ₹75,700 in Q1 2025-2026, up from ₹62,100 in Q1 FY25.
The quarterly loan-to-value ratio at Manappuram Finance was lower at 57%, down from 60%. This indicates a decrease in the proportion of the loan amount to the value of the collateral, which could potentially reduce the risk for the company.
Assets under management (AUM) in the gold loan segment of Manappuram Finance were up 22.4% y-o-y at ₹27,691 crore as on June-end 2025. However, the company's total expenses, including employee expenses and provisions for bad debts, rose about 16% y-o-y to ₹1,219 crore.
Unfortunately, the total gross non-performing assets (NPAs) of Manappuram Finance rose to 3%, and the net NPAs increased to 2.6%. This suggests an increase in the proportion of loans that are not being repaid, which could potentially impact the company's financial health.
It's worth noting that while Manappuram Finance's Q1 FY26 financials have been released, specific financial performance or key highlights for the company for this quarter are not currently available in the present search data. However, the financials of other companies such as CCL Products, Indian Energy Exchange (IEX), Bharat Electronics, Tata Motors, and State Bank of India (SBI) have been reported. SBI, for instance, reported a 12.5% year-on-year increase in Q1 net profit to ₹19,160 crore.
While the current Q1 FY26 financial performance of Manappuram Finance Ltd is not yet fully clear, it's important to keep an eye on the company's future releases for a more comprehensive understanding of its financial health and performance.
- The mixed performance of Manappuram Finance Ltd in Q1 FY26, as shown in their financial results, highlights the importance of continuous business analysis.
- The drop in the company's net profit, despite a growth in total income, underscores the necessity for a detailed it analysis to identify trends.
- The decrease in the quarterly loan-to-value ratio suggests a potential risk reduction in the company's business, but the increase in total expenses and NPAs indicates otherwise.
- In the realm of finance and investing, understanding the performance of a company like Manappuram Finance requires a thorough review of key metrics such as net profit, total income, assets under management, expenses, and NPAs.
- Investors who subscribe to financial news channels or services might find valuable insights from live analysis of companies' financial health, like the recent Q1 FY26 performance of Manappuram Finance.
- Comparative analysis of Manappurom Finance's financial performance with other companies' such as SBI, which reported a 12.5% year-on-year increase in Q1 net profit, can provide a broader understanding of the company's standing in the markets.
