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Informist, Monday, Aug. 10, 2026

 

By Divya Moolayattil

 

MUMBAI - Manappuram Finance Ltd. is likely to post a sharp rise in its net profit for the June quarter due to strong growth in gold loans. The exceptional on-year growth in net profit is also likely due to a weak base in the year-ago quarter.

 

The company's consolidated net profit for the June quarter is expected at INR 4.75 billion, up 243% on year and 17% on quarter, according to the average of estimates from five brokerages. The highest estimate for net profit is INR 5.56 billion from Bank of America Global Research and the lowest is INR 4.30 billion from IDBI Capital Market Services Ltd. The company's consolidated net profit was INR 4.04 billion in the March quarter.

 

Manappuram Finance is expected to deliver loan growth in the range of 37-100% on year, driven by a strong gold loan business, despite heavy competition from banks, as per estimates from three brokerages. However, tonnage in gold loan growth may decline due to high prices, PhillipCapital (India) Pvt. Ltd.

 

The consolidated net interest income is estimated at around INR 15.28 billion for the June quarter, up nearly 11% on year and 9% on quarter. The highest estimate for net interest income is INR 17.53 billion from Bank of America Global Research and the lowest is INR 13.7 billion from PhillipCapital.

 

Manappuram's net interest margin is expected at 10.45% for the reporting quarter, a rise of 643 basis points on year, but a fall of 64 bps sequentially, according to PhillipCapital.

 

Brokerages expect the gold financier's assets under management to grow 41% on year, driven by gold loans and improved microfinance institution collections. This will support strong earnings recovery. "Gold loan financiers should deliver another quarter of strong AUM growth," IDBI Capital said. The brokerage said prices of 24-carat gold remained well above the year-ago quarter even after correcting from the all-time high of INR 169,000 per 10 grams in the March quarter to INR 142,000 in the June quarter.

 

Manappuram Finance's credit cost is expected to rise around 30 bps sequentially to 1.87% for the June quarter, according to Motilal Oswal Financial Services Ltd.

 

The company will detail its June quarter earnings on Tuesday. On Monday, its shares ended at INR 369.3 apiece on the National Stock Exchange, up 0.7% from Friday. The stock is up over 20% since the company reported its March quarter earnings on May 4.

 

Of the eight research reports on the company available with Informist, five have a "buy" or equivalent recommendation on the stock with an average target price of INR 334. This is 9% lower than the current market price. Two brokerages have a "hold" recommendation and one has a "sell" recommendation on the stock.

 

Following are the June quarter earnings estimates for Manappuram Finance from five brokerages, in descending order of the estimates of net profit, in INR billion:

 

Brokerage	Net interest income	Net profit
Bank of America Global Research	17.53	5.56
Motilal Oswal Financial Services Ltd.	16.31	4.65
Nirmal Bang Equities Pvt. Ltd.	13.83	4.64
PhillipCapital (India) Pvt. Ltd.	13.07	4.58
IDBI Capital Market Services Ltd.	15.65	4.30
Average	15.28	4.75

 

End

 

Edited by Shubhayan Bhattacharya

 

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