Manba Finance delivered robust financial performance in the June 2026 quarter, with standalone net profit surging 36.00% to ₹13.26 crore compared to ₹9.75 crore in the corresponding quarter of the previous year. The company's Board approved Q1 FY27 results and declared a first interim dividend of ₹0.25 per equity share for FY2026-27, payable on or before August 20, 2026. As reported by Trade Brains, Friday, August 7, 2026, has been fixed as the record date for determining shareholders eligible to receive this payment. The Board of Directors approved the unaudited financial results during a meeting held on July 27, 2026, with the results subjected to a limited review by statutory auditors Krshna & Associates pursuant to SEBI regulations.
The company's total revenue from operations stood at ₹92.61 crore for Q1 FY27, down slightly from ₹93.41 crore in Q4FY26 but up significantly from ₹67.00 crore in Q1FY26. Interest income, the primary revenue driver, rose to ₹85.12 crore from ₹63.04 crore in the corresponding quarter last year, while other operating income increased sharply to ₹7.48 crore from ₹3.96 crore a year earlier. According to the latest financial data, interest income grew to ₹8,512.46 lakh from ₹6,304.15 lakh in Q1FY26, with other operating income contributing ₹748.35 lakh compared to ₹396.22 lakh last year. The divergence between the slight decline in total revenue and the robust 36% jump in net profit highlights improved operational efficiency, with other operating income contributing disproportionately more in Q1FY27 at 8% of revenue compared to Q4FY26's 1%.
Asset quality showed significant improvement on a year-on-year basis, with Gross Stage 3 asset ratio easing to 3.60% from 3.84% and Net Stage 3 ratio declining to 2.69% from 2.95%. As reported by Trade Brains, this improvement reflects enhanced asset quality management despite the company's focus on two-wheeler, three-wheeler and used-car financing segments. The company's impairment allowances under Ind AS 109 continue to exceed the regulatory provisioning requirement under RBI's Income Recognition, Asset Classification and Provisioning norms, indicating adequate provisioning coverage. The net profit margin expanded to 17.39% in Q1FY27, maintaining stability against the 17.65% margin in Q1FY26, despite higher finance costs. Gross NPA improved to 3.41% from 3.47% in Q1FY26, while Net NPA declined to 2.52% from 2.64% a year earlier, with approximately 95% of the loan portfolio remaining secured supporting credit risk management.
Finance costs increased to ₹43.52 crore from ₹32.39 crore in Q1FY26, while impairment on financial instruments rose to ₹7.91 crore from ₹4.34 crore a year earlier. However, profit before tax was reported at ₹16.11 crore, compared to ₹16.94 crore in the preceding quarter, with total expenses remaining stable at ₹76.50 crore. According to the latest data, the debt-equity ratio increased to 3.43 from 2.90 in the previous year, while net worth rose to ₹4,230.88 lakh from ₹3,788.53 lakh. The Capital Adequacy Ratio declined to 24.40% from 28.21% a year earlier, though still comfortably above regulatory minimums. Net Interest Margin stood at 12.13% with average yield on average AUM remaining healthy at 23.32%, while cost of borrowings was 10.86%. Despite higher finance costs, the company maintained strong financial metrics with the Capital Adequacy Ratio providing sufficient headroom to support future business growth.
Shares of Manba Finance traded at ₹143.61 on the NSE as of early Monday afternoon, declining 4% post Q1FY27 results despite delivering healthy year-on-year growth across key financial metrics. The stock touched a fresh 52-week high of ₹151 during the session, but the correction reflects that expectations were elevated heading into the quarter, with investors possibly focusing on moderation in sequential business momentum rather than the company's robust annual growth. As reported by Investing.com India, the market reaction suggests that elevated expectations were a key factor in the stock's decline, with the premium placed on execution consistency in the current market environment. The company's secured NCDs, aggregating ₹43,150 lakh in outstanding principal, carry an exclusive security cover ratio of 110% against required cover, indicating adequately collateralised leverage through the debenture route.
