Manba Finance Reports Robust FY26 Performance, Dividend Declared

Manba Finance Ltd announced its full-year financial results for the fiscal year ended March 31, 2026, showcasing significant growth in both income and profit.

Full-Year Financials

For FY26, the company reported a standalone profit after tax of ₹45.36 Cr, marking a substantial increase of approximately 35% from the ₹33.53 Cr recorded in the previous fiscal year. Total standalone income surged by 31.57% to ₹330.19 Cr, up from ₹250.97 Cr in FY25. Reflecting its positive financial performance, the company's board recommended a final dividend of ₹0.25 per share.

Quarterly Performance

In the fourth quarter of FY26, Manba Finance saw its standalone income climb 37.38% year-on-year to ₹93.42 Cr. The profit after tax for the quarter stood at ₹11.13 Cr.

Growth Drivers

Manba Finance's expanding market reach and operational efficiency are evident in its strong top-line growth. The company has been actively growing its loan book, which increased from ₹1,146.07 Cr in FY25 to ₹1,560.28 Cr in FY26. This strategic asset growth provides a foundation for future revenue streams.

Key Risks and Concerns

Despite the positive financial results, investors are monitoring key risk factors. The company's leverage has increased, with the Debt-to-Equity ratio rising from 2.91 in FY25 to 3.78 in FY26. Concurrently, finance costs escalated significantly, reaching ₹151.93 Cr for the year, up from ₹107.84 Cr in FY25. These factors heighten financial risk and sensitivity to interest rate fluctuations, especially for Non-Banking Financial Companies (NBFCs).

Asset quality remains a focus, with Gross Stage 3 assets, also known as non-performing assets (NPAs), reported at 3.58% as of March 31, 2026.

Peer Landscape

Manba Finance operates in competitive segments such as vehicle finance and loans against property. Its peers, including Cholamandalam Investment and Finance and Shriram Finance, face similar challenges and opportunities in retail lending, navigating evolving economic conditions and interest rate dynamics.

What to Watch Next

Looking ahead, attention will be on management's commentary regarding strategies for managing rising finance costs and leverage. Investors will also track future guidance on loan book growth, asset quality maintenance, and the company's approach to capitalising on growth opportunities while mitigating financial risks. The final confirmation of the dividend payout will also be noted.