Kerala-based Manappuram Finance reported a strong start to FY27, with consolidated net profit rising sharply and its gold loan portfolio continuing to drive growth.
The non-banking finance company reported total income of ₹3,040.33 crore in the quarter ended June 30, 2026, up 34.2% year-on-year from ₹2,264.94 crore in Q1 FY26. Total income was also 15.8% higher quarter-on-quarter, compared with ₹2,625.58 crore in the March 2026 quarter.
Consolidated net profit rose to ₹584.77 crore, an increase of 341.4% from ₹132.47 crore a year earlier. Compared with the ₹404.79 crore reported in Q4 FY26, profit increased 44.5% sequentially.
The improvement was supported by strong growth in the loan book and operating earnings, lower provisions than a year earlier, and a turnaround at Asirvad Microfinance, which swung to a ₹21 crore profit from a ₹269 crore loss in Q1 FY26.
The biggest driver of Manappuram's expansion was its gold loan business.
Consolidated assets under management (AUM) reached ₹69,635 crore, up 57.2% year-on-year and 9.1% from the March quarter.
Gold loan AUM almost doubled from the previous year, rising 97.9% to ₹57,006 crore. It was also 11.9% higher than the ₹50,953 crore recorded at the end of March.
Gold loans consequently accounted for about 82% of Manappuram's consolidated AUM at the end of June.
In contrast, consolidated non-gold AUM declined 18.5% year-on-year to ₹12,629 crore and was 1.7% lower sequentially.
A significant improvement came from subsidiary Asirvad Microfinance, which returned to profitability after a difficult FY26.
Asirvad reported profit after tax of ₹21 crore in Q1 FY27, compared with a loss of ₹269 crore in the corresponding quarter last year. Profit was ₹13 crore in the March quarter.
Its overall AUM stood at ₹7,188 crore, up 7.2% year-on-year and 5.8% sequentially. However, its core microfinance AUM remained 12.9% below the year-ago level, while its gold loan portfolio more than doubled to ₹2,344 crore.
Asirvad's gross NPA ratio stood at 4.8%, unchanged from March, while its net NPA ratio improved to 1.4% from 1.6%.
V.P. Nandakumar, Chairman and Managing Director of Manappuram Finance, said loan growth remained strong during the quarter and that Asirvad Microfinance's return to profitability had helped the group's performance.
He also pointed to funding challenges and volatility in gold prices as concerns, while attributing the quarter's performance to operational efficiency, cost reduction, digitalisation and expansion into newer markets.
The group had 5,328 branches as of June 30.
The board has also declared an interim dividend of ₹1 per equity share, with August 17, 2026 fixed as the record date.
