Whalesbook
📉 The Financial Deep Dive
Manba Finance Limited has posted a strong financial performance for Q3 FY26, characterized by significant year-on-year growth and improved asset quality. Assets Under Management (AUM) expanded by 25% YoY to ₹1,631 crore as of December 31, 2025, while the total balance sheet size reached ₹1,771 crore.
Disbursements demonstrated considerable momentum, with ₹746 crore achieved for the nine months ended December 31, 2025. The third quarter alone saw ₹347 crore in disbursements, marking an impressive 48.90% quarter-on-quarter increase.
Net Interest Income (NII) grew 17% YoY to ₹42 crore for Q3 FY26 and 19% YoY to ₹110 crore for 9M FY26. Profit After Tax (PAT) for the nine months increased 15% YoY to ₹34 crore, with Q3 PAT at ₹13 crore. The Net Interest Margin (NIM) remained stable at 12.65%, indicating consistent core profitability.
Asset quality metrics saw notable improvement, with Gross NPA declining to 3.38% and Net NPA to 2.57%. Credit costs were managed effectively, staying consistently below 1%, and the Capital Adeququacy Ratio (CAR) stood at a healthy 25.06%, providing a strong buffer.
📈 Management Guidance & Growth Drivers
The company provided forward-looking guidance for FY26, expecting AUM to reach ₹1,700-1,750 crore. For FY27, Manba Finance targets 25-30% YoY revenue growth, with PAT projected between ₹65-70 crore, an ROA of 3.25-3.5%, and an ROE of 14-15%.
Strategic initiatives are geared towards expanding its product portfolio and market reach. A new MSME Loan Against Property (LAP) product is slated for launch in February 2026. The company aims to deepen its operational presence in Uttar Pradesh and Madhya Pradesh. Furthermore, a strategic Memorandum of Understanding (MoU) with TVS Motor Company is expected to enhance three-wheeler financing.
Exploration into co-lending for used car financing and an increased focus on used two-wheeler loans are key strategic pushes. The company is planning equity fundraising for H2 FY27 or Q3 FY27, contingent on market conditions. Management clarified that there are no immediate plans to enter commercial vehicle financing.
🚩 Risks & Outlook
While the outlook is largely positive, the company noted mixed performance in the Electric Vehicle (EV) three-wheeler segment. This has been attributed to challenges with local manufacturers, which have consequently impacted collections in this specific sub-segment.
Investors will monitor the successful rollout of the MSME LAP product and the impact of the TVS Motor partnership. The ability to navigate the evolving EV financing landscape and successfully execute its deepening strategy in UP and MP will be crucial for achieving FY27 targets.