Manappuram Profit Triples to ₹701 Crore as Gold Loan Book Nearly Doubles

Synopsis

Consolidated earnings before tax jumped almost three times to ₹701 crore in the September quarter of FY27, according to Manappuram Finance. The total income was also increased from ₹2275 crore to ₹3312 crore a year later, while the assets under management in gold loans increased by 92.5% to ₹60640 crore. The outcome is after the net profit in the June quarter rose over four times to ₹585 crore from the year-ago level.

Manappuram Finance's consolidated post tax earnings for the quarter ended in September for FY27 grew over three times compared to the previous year to ₹701 crore. The total income grew from ₹2,275 crore to ₹3,312 crore.

A low base

The previous year quarter was off-peaks. The percentage growth is made big due to losses in the microfinance subsidiaries in Q2 FY26 which lead consolidated net profit to shrink by 62% year-on-year at ₹217 crore.

The book is driven by gold loans

The gold loan assets under management grew by 92.5% from the previous year to ₹60,640 crore. The gold loan AUM had increased by almost ₹57,006 crore from the previous year and the total AUM grew by 57% to ₹69,635 crore in Q1. The sequential increase in gold AUM is less than what is reflected in the year-on-year increase, which is approximately ₹3600 crore.

The June quarter

Net profit of the consolidated position increased by 341% to ₹585 crore in Q1 FY27, compared to ₹132 crore in the same quarter of the previous year, while net interest income increased 25%, to ₹1,759 crore. As of June 30th, 2026, the number of branches was 5,328. The profit in Q2 is therefore approximately 20% higher than in Q1.

Risks and monitoring

Later there are two points which require comment. The gold loan business is, first, reliant on the valuation of gold and on the loan-to-value ratio established by the regulator. Secondly, the microfinance arm which dragged down profitability in FY26 is still an unknown. The reports do not provide asset-quality data for Q2 or a breakdown of assets by microfinance.

Dividend and funding

The company has announced an interim dividend of ₹1 per share in the first quarter and proposed to raise its borrowing limit to ₹1 lakh crore by debt instruments. In the reports reviewed, there is no mention of a Q2 dividend.