Manappuram Finance drops 9% after mixed Q3 show; brokerages retain 'Hold'

Manappuram Finance share price today: Shares of non-banking finance company (NBFC) fell over 9 per cent to hit an intraday low of ₹270 on the National Stock Exchange (NSE) after the company reported a mixed performance for the October to December quarter of fiscal 2026 (Q3FY26). 

 

Around 12:00 PM, Manappuram Finance share price was trading 2.53 per cent lower at ₹289.5 compared to the previous session's close of ₹296.9 on the NSE. In comparison, the NSE Nifty50 was down 0.63 per cent at 25,260 levels. The market capitalisation of the company stood at ₹24,496 crore. The stock has recovered around 16 per cent from the 52-week high of ₹321.6 touched on January 7, 2026.

Manappuram Finance Q3 results highlights

In the Q3FY26, Manappuram Finance reported a consolidated profit after tax (PAT) of ₹238.5 crore, down 14 per cent from ₹28.5 crore in the year-ago period. The company's net interest income (NII) fell 18.36 per cent to ₹1,298.9 crore in the quarter under review compared to ₹1,590.9 crore. 

 

The NBFC reported a consolidated revenue from operations of ₹2,353.14 crore, down 8 per cent from ₹2,559.7 crore in Q3FY25.

 

Additionally, Manapuuram Finance's consolidated asset under management (AUM) grew 18.1 per cent to ₹522 billon in Q3FY26 against ₹442 billion in the year-ago quarter. 

 

On a standalone basis, the company gross non-performing asset (NPA) ratio increased to 2.6 from 2.5, while Net NPA ratio came in at 2.2 against 2.3.   ALSO READ | GRSE shares zoom 11% in 2 days after strong Q3; brokerages split on outlook 

The company's board has also declared an interim dividend of ₹0.50 per equity share of face value of ₹2 each. The record date for determining eligible shareholders has been fixed as Friday, February 6, 2026. 

 

Manappuram's management highlighted that the Gold loan segment will remain the primary growth driver for the company. It expects the industry growth driver to remain strong over the next couple of years, on the back of elevated gold prices, increasing preference for secured credit and regulatory streamlining. 

 

The management also informed that RBI approval for Bain's joint controlling stake is in the final stages, with all the required clarifications already submitted to the regulator. The company is expecting the RBI approval next month. 

Analysts on Manappuram Finance Q3 results

Motilal Oswal Financial Services (MOFSL)

According to analysts at MOFSL, Manappuram Finance reported a mixed quarter, with asset quality declining across the non-gold business and profitability remaining under pressure from continuous net interest margin (NIM) compression. 

 

The brokerage said, key positive was robust growth in the gold loan portfolio, though gains were partly offset by sharp yield compression. Asirvad MFI’s net loss narrowed sequentially on slightly lower credit costs, and the company expects the MFI portfolio to resume growth from FY27.

 

MOFSL expects the gold loan business to deliver healthy growth, with AUM rising at around 40 per cent CAGR over FY25–28, supported by higher gold prices and the company’s move to align lending rates with peer gold loan NBFCs. The brokerage has reiterated its 'Neutral' rating on the stock with a target price of ₹330, based on 1.6x December 2027E consolidated BVPS.  ALSO READ | Walchandnagar Industries shares zoom 14% on healthy Q3 show; revenue up 37%

Axis Securities

Axis Securities has raised its AUM growth assumptions for FY26, factoring in strong momentum in gold loans. While, the brokerage has trimmed FY26 NII estimates marginally by about 3 per cent due to near-term yield moderation, NII projections for FY27–28 have been revised up by 2–3 per cent on expectations of sustained gold loan growth and a recovery in non-gold segments. 

 

The brokerage also noted that continued investments in manpower, technology and branch expansion are expected to be offset by lower credit costs, keeping earnings estimates broadly unchanged for FY27–28E.

 

Axis Securities expects Manappuram’s RoA and RoE to normalise at 2.6-2.8 per cent and 11–13 per cent, respectively, over FY27–28E, compared with 1.3 per cent and 5.4 per cent in FY26. Overall, the company is projected to deliver AUM, NII and earnings CAGR of 19 per cent, 22 per cent and 81 per cent, respectively, over FY25–28E, the brokerage said in its note.

 

On valuation, analysts said the stock appears fairly valued and further upside would depend on smooth execution of the growth strategy and improving profitability. Axis Securities values Manappuram at 1.6x September 2027E book value to arrive at its target price ₹295. It has maintained a 'Hold' rating on the stock.

 

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