According to Motilal Oswal's research report dated August 11, 2026, Manappuram Finance delivered impressive first-quarter results for FY27. The company's consolidated profit after tax (PAT) surged 340% year-on-year and 44% quarter-on-quarter to approximately ₹5.9 billion, representing a 26% beat over estimates. Net interest income (NII) grew 25% YoY to approximately ₹17.2 billion, achieving a 6% beat over projections. Operating expenses remained controlled, growing only 1% YoY to approximately ₹7.6 billion, while pre-provision operating profit (PPoP) increased 52% YoY to approximately ₹10.1 billion, beating estimates by 8%.
As reported by Motilal Oswal, consolidated credit costs stood at ₹2.3 billion versus estimates of ₹3.1 billion. The annualized credit costs for the quarter declined 15 basis points quarter-on-quarter to 1.35%, compared to 1.5% in the previous quarter. During Q1FY27, Manappuram Finance and Manappuram Home Finance revised their expected credit loss (ECL) models by updating probability of default (PD), loss given default (LGD), exposure at default (EAD), and forward-looking macroeconomic assumptions, resulting in an additional ECL provision of ₹1.25 billion during the quarter.
According to the research report, Manappuram Finance appointed Mr. Ashish Singh as Managing Director and CEO for a five-year term effective January 2027. Singh brings over 25 years of experience in retail banking, with expertise in rural lending, retail liabilities, and branch banking. He has held senior roles at IDFC FIRST Bank, Fullerton India, and ICICI Bank.
Motilal Oswal raised its FY27 and FY28 earnings per share estimates by 18% and 3% respectively to factor in higher net interest margins and lower credit costs. The stock currently trades at 1.7x FY28E price-to-book value. Over the FY26-28E period, the brokerage estimates a compound annual growth rate of 27% in gold AUM and 25% in consolidated AUM, with consolidated profit after tax growing at approximately 75% CAGR. The company is projected to achieve consolidated return on assets of 3% and return on equity of 14.6% in FY28.
