Manappuram Finance shares fell more than 2% on Tuesday despite the company posting strong Q4 FY26 results. According to reports from The Economic Times, the stock declined even as several brokerages maintained bullish views on the non-bank lender's performance. The company announced its results post market hours on Monday, showing a net profit of nearly ₹404 crore for the fourth quarter of FY26, compared with a net loss of ₹191 crore in the same quarter of FY25. As per TradingView News, the stock declined despite the company turning profitable, with net interest income (NII) also increasing 2.6% YoY to ₹1,504.3 crore from ₹1,465.6 crore in the previous year.
As reported by The Economic Times, the company's consolidated net profit jumped about 68% sequentially from ₹241 crore reported in the third quarter of FY26. Revenue from operations grew nearly 11% year-on-year to ₹2,614 crore in Q4 FY26, up from ₹2,361 crore in the corresponding period last year. Total income rose more than 11% YoY to ₹2,626 crore, while total expenses grew around 21% YoY to ₹2,062 crore during the January-March quarter of FY26. According to Motilal Oswal's latest research report dated May 05, 2026, 4Q NII declined ~3% YoY to ~₹14 billion (in line with estimates), while operating expenses declined 6% YoY to ~₹7.4 billion (11% lower than estimates). PPoP grew ~14% YoY to ~₹7.8 billion (~22% beat), and consolidated credit costs stood at ~₹2.2 billion (vs. estimate of ~₹3.2 billion), with annualized credit costs for the quarter at ~1.5% (PQ: ~2.9%).
According to reports from The Economic Times, the gold loans and others category posted a sharp 136% jump in revenue to ₹2,331 crore in the quarter under review, compared with ₹990 crore in the year-ago period. This robust growth in the gold loans segment helped offset a steep 79% year-on-year decline in revenue from the microfinance business, which fell to ₹294 crore in Q4 FY26 from ₹1,372 crore in Q4 FY25. The company announced an interim dividend alongside its results. As per Motilal Oswal's latest report, MGFL expects to sustain growth in FY27, led by strong gold loan momentum, supported by a robust franchise and disciplined underwriting. Management expects to add ~500-550 gold loan branches in FY27, while partnerships and co-lending will broaden its reach beyond branch presence.
As reported by The Economic Times, Jefferies upgraded the stock to 'Buy' from 'Hold' and raised its target price to ₹360 per share from ₹285 per share, implying an upside potential of nearly 18% from the stock's previous closing price. The brokerage expects profit to rise 2.6x with ROE improving to 13% over FY26-28E. Morgan Stanley remains cautious due to limited visibility in the non-gold business, while Motilal Oswal has now recommended a Neutral rating on Manappuram Finance with a target price of ₹315 in its research report dated May 05, 2026. According to Motilal Oswal's analysis, the stock trades at 1.6x FY27E P/B, and over FY26-28, they estimate a CAGR of 25%/23% in gold/consolidated AUM and ~66% in consolidated PAT, with consolidated RoA/RoE of ~3%/14% in FY28. The target price of ₹315 is based on 1.5x FY28E consolidated BVPS.
According to reports from The Economic Times, for the entire financial year 2026, Manappuram Finance's consolidated net profit declined over 17% YoY to ₹1,003 crore, from ₹1,216 crore in FY25. Revenue from operations fell 5% to ₹9,509 crore in the financial year 2025-2026. Before Tuesday's decline, Manappuram Finance's shares had been on an upward trend, gaining over 17% in the past month, after Bain Capital acquired a 41.66% stake in the company and assumed joint control. As per Motilal Oswal's outlook, with a calibrated approach in non-gold segments (MFI and VF), along with a stable operating profile, the company is well positioned for healthy AUM growth in FY27.
