Manba Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Manba Finance Ltd filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Manba Finance reported net interest income of Rs 42 crores for Q1 FY27, up 36% year-on-year, and profit after tax of Rs 13 crores, also up 36% year-on-year. Assets under management stood at Rs 1,731 crores, a 22% year-on-year increase, while disbursements grew 37% year-on-year to Rs 226 crores. Management discussed entry into the South Indian market through a partnership with Sreesastha operating as Nammaloan, launch of MSME loan against property and battery replacement finance products, and plans to raise Rs 100 crores in preference share capital by September or October.
Numbers mentioned
Net interest income: INR42 crores (Q1 FY27)
p. 4
“For the first quarter under review, the net interest income stood at INR42 crores, registering a significant growth of 36% year-on-year.”
Jay Mota, page 4 of the filed PDF · View the filing
Profit after tax: INR13 crores (Q1 FY27)
p. 4
“Profit after tax for the quarter increased by 36% year-on-year to INR13 crores, reflecting a healthy profitability and continued operational momentum.”
Jay Mota, page 4 of the filed PDF · View the filing
Assets under management: INR1,731 crores (As of June 30, 2026)
p. 4
“As of June 30th, 2026, our asset under management stood at INR1,731 crores, reflecting a robust year-on-year growth of 22%.”
Jay Mota, page 4 of the filed PDF · View the filing
Disbursement: INR226 crores (Q1 FY27)
p. 4
“During the period, disbursement grew by 37% year-on-year to INR226 crores, reflecting a strong demand across the core vehicle finance portfolio and continued execution across existing market.”
Jay Mota, page 4 of the filed PDF · View the filing
Gross NPA: 3.41% (As of June 2026)
p. 5
“At the end of the quarter, gross NPA stood at 3.41% and net NPA was 2.52%.”
Jay Mota, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 24.40% (Q1 FY27)
p. 5
“Further, our capital adequacy ratio remained healthy at 24.40%, well above the regulatory requirement, providing ample headroom to the support of future growth.”
Jay Mota, page 5 of the filed PDF · View the filing
Average cost of borrowing: 10.86% (Q1 FY27)
p. 5
“On the funding side, our average cost of borrowing currently stands at 10.86%.”
Jay Mota, page 5 of the filed PDF · View the filing
Expected credit loss provision: INR25 crores (Q1 FY27)
p. 5
“Our expected credit loss provision stood at INR25 crores compared to IRAC norm requirement INR7.57 crores, resulting in a healthy excess buffer.”
Jay Mota, page 5 of the filed PDF · View the filing
Interim dividend: INR0.25 per equity share (FY27)
p. 4
“the company declared first interim dividend of INR0.25 per equity shares on a face value of INR10 each for the financial year ‘26, ‘27, reflecting our continued commitment towards shareholders value creation.”
Manish Shah, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — 35% to 40% · FY27
stated firmly by Manish Shah
p. 4
“Based on the strong momentum we have built, we remain confident of delivering AUM growth of 35% to 40% growth during the current financial years.”
Manish Shah, page 4 of the filed PDF · View the filing
Capital raise — INR100 crores via preference shares · By September or October
stated firmly by Manish Shah
p. 5
“By September or latest by October, we will raise INR100 crores to for to manage our further growth and expansion.”
Manish Shah, page 5 of the filed PDF · View the filing
MSME LAP contribution to AUM — 2% to 3% · By end of FY27
stated as an aspiration by Manish Shah
p. 6
“Yes. So that loan against property we are expecting around 3% by end of -- 2% to 3% because this year only we started.”
Manish Shah, page 6 of the filed PDF · View the filing
Two-wheeler share of AUM — 65% · Within three years
stated as an aspiration by Manish Shah
p. 6
“So eventually the dependency on the two-wheeler, which today is almost 80% plus percent, will come down to almost 65% within three years' time.”
Manish Shah, page 6 of the filed PDF · View the filing
Two-wheeler share of AUM — 75% to 77% · By end of this year
stated as an aspiration by Manish Shah
p. 10
“So that these all including all these products will take the replacement of the two-wheeler contribution, which is today 84% and we are expecting that by end of this year it should be reach around 77% to -- 75% to 77%.”
Manish Shah, page 10 of the filed PDF · View the filing
ROA — 3.5% · FY27
stated as an aspiration by Manish Shah
p. 11
“Yes. So, we are targeting around 3.5% ROA for the FY27.”
Manish Shah, page 11 of the filed PDF · View the filing
Net interest margin — 13% to 14%
stated as an aspiration by Manish Shah
p. 11
“So eventually net interest margin will remain in the range of 13% to 14%.”
Manish Shah, page 11 of the filed PDF · View the filing
Nammaloan partnership AUM — INR60 crores to INR75 crores · FY27
stated as an aspiration by Manish Shah
p. 9
“And this year we are expecting AUM of around INR60 crores to INR75 crores with this partner.”
Manish Shah, page 9 of the filed PDF · View the filing
Nammaloan partnership break-even — 9 to 12 months
stated as an aspiration by Manish Shah
p. 10
“But of course, they've been -- the kind of response which we are seeing in the very first month, it seems it can become break-even in the six to seven months also. But generally, nine month is a break-even time.”
Manish Shah, page 10 of the filed PDF · View the filing
State expansion — No new states beyond current plans · This year
stated firmly by Manish Shah
p. 12
“No. So now this year there is no other plan because we want to focus more on UP, MP and some part of Rajasthan, as well as we want to focus on South expansion which is just started.”
Manish Shah, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management confirmed plans to raise INR100 crores via preference shares by September or October.
Answered by Manish Shah
Asked by Rohan Shah: Does management anticipate needing more capital given the decline in capital adequacy ratio?
p. 5
“Yes. So, we have already visualized this thing and anticipated the need for the further capital. And we are in a process of raising the capital.”
Manish Shah, page 5 of the filed PDF · View the filing
Management explained the mix across term loans, NCDs, PTC and CC balance, and attributed the higher borrowing cost to maintaining liquidity.
Answered by Jay Mota
Asked by Tushar: What is the borrowing mix and outlook on cost of borrowing?
p. 9
“So out of borrowing mix, around 60% is in form of term loan and around 25% in term of NCD and rest is PTC and CC balance.”
Jay Mota, page 9 of the filed PDF · View the filing
Management said Q1 is seasonally weaker and expects a bigger jump in AUM in the second and third quarters due to festivals.
Answered by Manish Shah
Asked by Tushar: Why was AUM growth quarter-on-quarter only around 1% despite strong two-wheeler industry trends?
p. 9
“So definitely September and most importantly third quarter will have a big jump in the AUM.”
Manish Shah, page 9 of the filed PDF · View the filing
Management expects AUM of INR60-75 crores this year and break-even in about 9 months, potentially sooner.
Answered by Manish Shah
Asked by Shlok Sanghvi: What are the AUM expectations and break-even timeline for the Nammaloan partnership?
p. 9
“So Namma Loan, the company name isSreesastha. This disbursement has already started. And this year we are expecting AUM of around INR60 crores to INR75 crores with this partner.”
Manish Shah, page 9 of the filed PDF · View the filing
Management attributed the lower collection cost to having 85% of collections in-house rather than outsourced to third parties.
Answered by Manish Shah
Asked by Jay Jain: How does the lower collection cost compared to peers help cap opex?
p. 11
“My collection cost is much lesser than my competitors because all my competitors are giving the collection work to the third-party agencies, where in Manba's case 85% of the collection is in-house.”
Manish Shah, page 11 of the filed PDF · View the filing
Management clarified it is not co-lending; Manba funds 100% and the partner acts as a business correspondent.
Answered by Manish Shah
Asked by Raj Jain: What are the terms of the Nammaloan partnership regarding co-lending?
p. 12
“So, this is nothing like a co-lending, it is like a 100% our funding is there, they work like a BC partner.”
Manish Shah, page 12 of the filed PDF · View the filing
Risks flagged
Battery replacement in three-wheelers can turn the vehicle into a non-performing asset if not addressed
p. 7
“So, this is the time where this product we introduced.”
Manish Shah, page 7 of the filed PDF · View the filing
Increased borrowing cost due to maintaining higher liquidity levels
p. 9
“So, because of the keeping a healthy liquidity, there was slightly increase in the borrowing, means like interest burden.”
Jay Mota, page 9 of the filed PDF · View the filing
Seasonal weakness in AUM growth during April-June due to fewer festivals
p. 9
“And this April, May, June is a very reasonably not very many festivals are there.”
Manish Shah, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.