Quarterly standalone net profit of Manappuram Finance decreases by 11% to ₹392 crore in FY26's Q1.
In a recent financial report, Manappuram Finance Ltd (MFL) has announced a 11% year-on-year (y-o-y) drop in its standalone net profit for the first quarter of the current year. This decline is primarily attributed to a significant increase in impairment costs and a decrease in net interest income (NII).
The consolidated net profit for the quarter stood at Rs 138 crore, a 75% decline from the same period last year's Rs 555 crore. Calculated NII also saw a decline of 10.2%. Impairment expenses rose substantially to Rs 559 crore from Rs 229 crore in the previous year, which had a substantial impact on profitability [1][3][5].
The worsening asset quality and higher provisioning requirements, coupled with lower interest income, are the main reasons behind this profit drop in the recent quarter compared to the same period last year [1]. Gross non-performing assets (NPAs) at Manappuram Finance have risen to 3%.
On a positive note, the average gold loan ticket size at Manappuram Finance has increased to ₹75,700 (from ₹62,100 in Q1 FY25). The quarterly loan-to-value ratio at Manappuram Finance was lower at 57%, down from 60%. This suggests a more conservative lending approach by the company [2].
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. The standalone AUM (excluding gold loan) increased by 15% to ₹35,698 crore [4].
Meanwhile, other Indian companies have reported varying financial results. Equitas Small Finance Bank reported losses of ₹224 crore due to one-time payments. Total expenses, including employee expenses and provisions for bad debts, rose about 16% to ₹1,219 crore. Tata Motors reported a standalone Q1 net profit of ₹3,924 crore, while SBI reported a 12.5% y-o-y increase in Q1 net profit at ₹19,160 crore [6][7].
However, some companies such as Voltas and Wockhardt have reported a decline in Q1 net profit, with specific figures not provided. Grasim, GRSE, and Naukri have reported an increase in Q1 profit, but the exact figures are not disclosed [8].
[1] - [Link to the source] [2] - [Link to the source] [3] - [Link to the source] [4] - [Link to the source] [5] - [Link to the source] [6] - [Link to the source] [7] - [Link to the source] [8] - [Link to the source]
- The decline in Manappuram Finance Ltd's (MFL) standalone net profit for the first quarter is attributed to increased impairment costs and decreased net interest income (NII).
- The consolidated net profit for the quarter stood at Rs 138 crore, a significant 75% drop compared to the same period last year's Rs 555 crore.
- Impairment expenses rose substantially to Rs 559 crore from Rs 229 crore in the previous year, impacting profitability.
- On a positive note, the average gold loan ticket size at Manappuram Finance has increased, and the quarterly loan-to-value ratio was lower, indicating a more conservative lending approach.
- Assets under management (AUM) in the gold loan and other segments of Manappuram Finance increased significantly year-on-year.
- The financial results for other Indian companies show a mix of profits and losses, with some reporting declines in Q1 net profit, while others, such as Tata Motors and SBI, have reported increases. However, specific figures for some companies like Voltas and Wockhardt are not provided.
