Summary
Manba Finance Limited - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026, 04:00 P.M. IST
Event Participants
Executives 2 Jay Mota (Executive Director & CFO), Manish Shah (Managing Director)
Analysts 8 Abhishek (Individual Investor), Devansh Shah (Eternal Capital), Divyam Doshi (92 Capital), Heli Shah (Arihant Capital), Jinal (Individual Investor), Rohita S (Individual Investor), Sampatraj (Individual Investor), Sarthak Shah (Individual Investor), Sudharsan Nachimuthu (Prosperity Wealth Management), Tushar (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Assets Under Management (AUM) | ₹1,631 crores | +25% YoY; Growth driven by strong two-wheeler festive demand and network expansion. |
| Disbursements | ₹746 crores | 9M FY26 figure; Q3 saw record seasonal high of ₹347 crores, up +48.90% QoQ. |
| Net Interest Income (NII) | ₹42 crores | +17% YoY for Q3 FY26; 9M FY26 NII hit ₹110 crores (+19% YoY). |
| Net Interest Margin (NIM) | 12.65% | 9M FY26 average; Supported by healthy gross yields of 22.80%. |
| Profit After Tax (PAT) | ₹13 crores | Q3 FY26 figure; 9M FY26 PAT stood at ₹34 crores (+15% YoY). |
| Gross NPA (Stage 3) | 3.38% | Improved from 3.52% in Q2 FY26; Credit costs remain stable below 1%. |
| Net NPA | 2.57% | Improved from 2.68% in Q2 FY26; Reflects strong internal collection engine. |
| Capital Adequacy (CRAR) | 25.06% | Robust capital position well above regulatory minimums; Leverage at 3.37x. |
| Cost of Borrowing | 10.12% | Gradual decline from 10.80% due to improved credit ratings (CARE BBB+ Positive). |
| Customer Base | 2,00,000+ | Added 37,500 new customers during the quarter. |
Geographic & Segment Commentary
- Two-Wheeler Financing: Remains the core anchor segment accounting for 85.91% of the portfolio. Management noted strong festive demand in Q3 and high turnaround times with 60% of loans sanctioned in 1 minute.
- Geography (UP & MP): Strategic focus is on deepening penetration in Uttar Pradesh and Madhya Pradesh rather than adding new states. Management plans to add 18-20 new locations and 100+ employees in UP next year.
- Product Diversification: Secured lending constitutes 95% of the portfolio. Combined share of Three-wheelers (3.05%), Small Business Loans (4.22%), and Top-up loans (4%) is gradually increasing to improve yield mix.
Company-Specific & Strategic Commentary
- Strategic Partnerships: Signed an MoU with TVS Motor Company to finance three-wheelers across 138 dealerships in 6 states. Management expects this to generate ₹250-₹300 crores in disbursements over 18-24 months.
- New Product Launch: Launching MSME LAP (Loan Against Property) on February 10, 2026, targeting ticket sizes of ₹5-₹20 lakhs with yields of 19-20%. Initial rollout will be in Mumbai and Pune.
- Digital Efficiency: Achieved high operational efficiency with 92% of all loans sanctioned within a single day.
- Liquidity & Funding: Diversifying liability profile by increasing NCD issuance to reach retail investors. Management noted no negative ALM mismatches across any time buckets.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| AUM | ₹1,700 - ₹1,750 crores | Target for end of FY 2026; Continued focus on 25-30% annual growth. |
| PAT | ₹65 - ₹70 crores | Target for FY 2027; Expected to reach ₹100 crores in subsequent years. |
| ROA / ROE | 3.25-3.5% / 14-15% | Projected steady-state profitability targets for FY 2027. |
| Capital Raising | Q2 or Q3 FY 2027 | Plan to raise fresh equity capital to support growth as leverage approaches 4x-4.25x. |
Risks & Constraints
| Risk | Context |
|---|---|
| Asset Quality in New Segments | Expansion into UP/MP and new products like LAP requires strict underwriting. Management mitigates this by restricting LTV to 75% in new territories. |
| EV Three-Wheeler Performance | Management noted collection issues and technical standard failures in local EV passenger rickshaws. Strategy is now focused on top-tier brands (TVS, Ather, Ola, Chetak). |
| Borrowing Cost Volatility | While costs are currently declining, reliance on term loans (11% cost) vs NCDs (10.65%) remains a factor. Management is shifting toward Direct Assignment (DA) to hedge interest rate risks. |
Q&A Highlights
Yields and Borrowing Costs
- Question: Why have finance costs increased if borrowing levels were stable? (Sudharsan Nachimuthu)
- Answer: Large borrowings of ₹410 crores occurred in late September to prepare for festive liquidity. The full interest impact hit Q3, while the corresponding interest income from Q3 disbursements will only fully reflect from Q4 (Jan-March) onwards (Jay Mota/Manish Shah).
New Product Strategy (LAP)
- Question: What are the details of the upcoming LAP product? (Rohita S)
- Answer: We are launching a MSME LAP product on Feb 10, 2026, with 19-20% yields. It will start in Mumbai and Pune before expanding to Nasik (Manish Shah).
Provisioning (PCR)
- Question: Why is PCR at 24%, below the industry average of 40-60%? (Jinal)
- Answer: Historic credit losses are very low (<1%). However, we are gradually increasing PCR from 10% toward 26% and will use profits from upcoming DA transactions to further strengthen the balance sheet (Manish Shah).
TVS Partnership
- Question: What is the potential of the TVS MoU? (Tushar)
- Answer: We aim to add 20 TVS dealers per month. We expect three-wheelers to eventually scale to 10% of the total AUM, contributing ₹250-₹300 crores in disbursements over the next two years (Manish Shah).
Key Takeaway
Manba Finance delivered a robust Q3 FY26 with AUM reaching ₹1,631 crores, up 25% YoY, and record quarterly disbursements of ₹347 crores driven by festive demand. While profitability growth (PAT ₹13 crores) lagged disbursement growth due to interest timing, management expects a significant margin catch-up in Q4. Strategically, the company is pivoting toward a more diversified secured mix through a TVS partnership for three-wheelers and the launch of a high-yield MSME LAP product in February 2026. Asset quality remains stable with Stage 3 assets at 3.38% and credit costs under 1%. With a healthy CRAR of 25.06% and plans for an equity raise in mid-FY27, Manba is positioned to sustain its 25-30% growth trajectory while deepening its presence in Uttar Pradesh and Madhya Pradesh. Forward guidance remains optimistic, targeting a ₹65-₹70 crore PAT for FY27.
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