Q1 2027 Manba Finance Ltd Earnings Call Transcript
Key Points
- Strong financial performance with NII and PAT both growing 36% YoY, and disbursements up 37% YoY.
- Healthy asset quality with gross NPA at 3.41% and net NPA at 2.52%, supported by an excess ECL provision buffer.
- Strategic expansion into South India through a partnership with Sreesastha (Nammaloan), starting with Karnataka and Tamil Nadu.
- Product diversification with new MSME LAP and battery replacement financing, aiming to reduce two-wheeler concentration from 84% to 65% over three years.
- Robust capital position with CAR at 24.40%, well above regulatory requirements, and plans to raise INR100 crore via preference shares to support growth.
- Capital adequacy ratio declined from 29.81% in FY25 to around 24-25%, necessitating a planned capital raise.
- AUM growth was modest on a QoQ basis (around 1%), with management attributing it to seasonal factors and a high base.
- Cost of borrowing increased by 15-20 bps due to maintaining higher liquidity, impacting net interest margins.
- New initiatives like MSME LAP and battery financing are in early stages, with MSME LAP expected to contribute only 2-3% to AUM by year-end.
- South India expansion is expected to take 9-12 months to reach breakeven, indicating initial drag on profitability.
Ladies and gentlemen, good day and welcome to Manba Finance Limited Q&FY27 Earnings Conference Call. (Operator Instructions) I now hand the conference over to Ms. Sanjana Sivaram from Dam Capital.
Thank you and over to you ma'am.
Thank you.
Thank you. Good afternoon, everyone. Welcome to Q1 FY â27 earnings call of Manba Finance Limited. On behalf of DAM Capital, I would like to thank the management for giving us the opportunity to host this call. Today we have with us from the management team, Mr. Manish Shah, the Managing Director, and Mr. Jay Mota, the Executive Director and Chief Financial Officer.
Iâll hand over the call to the management for opening remarks, post which weâll open the floor for Q&A. Over to you, sir.
Yeah, good afternoon, everyone, and thank you for joining our earning call today to discuss the performance for the first quarter of the financial year â27. I would also
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