Q2 2026 Manappuram Finance Ltd Earnings Call Transcript
Key Points
- Manappuram Finance Ltd (BOM:531213) reported a significant increase in consolidated net profit for Q2 FY26, rising to 217 Crore from 132 Crore in Q1 FY26.
- The company's consolidated assets under management grew to 45,789.4 Crores, representing a quarter-on-quarter increase of 3.4%.
- The gold loan business remains a primary growth driver, with a year-on-year increase of 29.3% in consolidated gold loan assets.
- Manappuram Finance Ltd has successfully reduced borrowing costs by 12 basis points during the quarter, enhancing financial efficiency.
- The company is implementing strategic initiatives such as strengthening branch infrastructure, enhancing digital capabilities, and introducing AI-based security systems to accelerate growth in the gold loan segment.
- The company's profit after tax, excluding subsidiaries, decreased by 4.1% due to increased provisions for the vehicle finance business.
- Asset quality challenges persist, with GNPA remaining stable at 2.97%, indicating ongoing collection issues in certain segments.
- The vehicle finance segment experienced higher delinquency rates, leading to slower disbursements and increased provision coverage.
- The microfinance subsidiary reported a year-on-year decline of 56% in its portfolio, highlighting ongoing challenges in this segment.
- Despite reducing interest rates to align with top players, the company has not yet seen a significant revival in customer growth or tonnage in the gold loan segment.
Ladies and gentlemen, good day and welcome to the Manappuram finance Q2 and FY earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need an assistance during the conference call, please signal an operator by pressing, then 0 on your touchstone phone. Please note that this conference is being recorded.
I now would like to hand over the call to Mr. Abhijit Tibrewal from Motilal Oswal Financial Services Limited.
Thank you and over to you, sir.
Good evening everyone. I am Abhijit from Motilal, and it is a pleasure to welcome you all to this conference call.
Thank you very much for joining us for the Mana Puram Finance call to discuss this Q2 FY 26 earnings. To discuss the company's earnings, I am pleased to welcome Mr. VP Nand Kumar, CMD Doctor Sumiha Nander, executive director, Mr. Deepak Reddy, CEO, Ms. AL CFO. Mr. Raju Narayan,
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