Manba Finance reported a strong Q1 FY27 with a 36% year-on-year growth in both Net Interest Income and Profit After Tax, reaching ₹13 crore. The company plans a ₹100 crore capital raise and is expanding into South India.
Manba Finance Q1 FY27 Results: Profit Surges 36%, Company Eyes Growth
Manba Finance's Profit After Tax (PAT) for the first quarter of FY27 reached ₹13 crore, marking a significant 36% year-on-year increase. Net Interest Income (NII) also grew by 36% to ₹42 crore. Reader Takeaway: Strong profit growth and diversification plans offer positive outlook, but portfolio concentration remains a watch point. ## What just happened Manba Finance announced its financial results for the quarter ending June 30, 2026. The company reported a 36% year-on-year growth in both Net Interest Income (NII) and Profit After Tax (PAT), reaching ₹42 crore and ₹13 crore respectively. Disbursements increased by 37% to ₹226 crore, contributing to a 22% rise in Assets Under Management (AUM) to ₹1,731 crore. ## Why this matters The robust growth in NII and PAT demonstrates the company's improving profitability and operational efficiency. The expansion of AUM and disbursements indicates a growing market presence. The company's strategic moves to diversify its product portfolio and enter new markets are key to its long-term sustainability and growth. ## The backstory Manba Finance has been focusing on expanding its loan book, particularly in the two-wheeler segment, which currently constitutes 84.1% of its portfolio. The company has been working on strategic initiatives to mitigate concentration risk. ## What changes now Manba Finance plans to raise ₹100 crore through preference shares by September or October 2026 to fuel its growth and maintain its Capital Adequacy Ratio (CAR), which stood at 24.40% at the end of Q1 FY27. The company is also entering the South Indian market via a partnership with Sreesastha (Nammaloan), providing 100% funding. To reduce dependence on the two-wheeler segment, new products like MSME Loan Against Property (LAP) and EV battery replacement finance have been launched, aiming to bring the two-wheeler loan contribution down to about 65% in three years. ## Risks to watch The primary concern is the high concentration in the two-wheeler loan portfolio (84.1%). While diversification efforts are underway, their success in reducing this concentration over the next three years needs monitoring. Additionally, an increase in borrowing costs, currently at 10.86%, could impact net interest margins if not managed efficiently. ## Peer comparison While specific peer data is not provided in the filing, Manba Finance's growth in AUM and PAT can be benchmarked against other NBFCs in the retail and MSME lending space. The company's focus on technological efficiency and an in-house collection model (85% in-house) are competitive advantages. ## Context metrics * Q1 FY27 PAT: ₹13 crore (36% YoY growth) * Q1 FY27 NII: ₹42 crore (36% YoY growth) * AUM (June 30, 2026): ₹1,731 crore (22% YoY growth) * Disbursements (Q1 FY27): ₹226 crore (37% YoY growth) * Capital Adequacy Ratio: 24.40% * Gross NPA: 3.41% * Net NPA: 2.52% * Average Borrowing Cost: 10.86% ## What to track next Investors will be looking for updates on the successful completion of the ₹100 crore capital raise. The performance and contribution of new products (MSME LAP, EV battery finance) to the overall portfolio and the progress in reducing two-wheeler loan concentration will be key metrics to track in the coming quarters. Management's target of 35%-40% AUM growth for FY27 also provides a benchmark for performance.
