Manappuram Finance rebounds over 2% after Q1 revenue hunch; is a turnaround underway?

Manappuram Shares Right this moment: Shares of Manappuram Finance Ltd rebounded in morning commerce on Monday, rising 2.30 per cent to Rs 264.45 on the NSE as of 10:51 a.m., after initially falling put up weak Q1FY26 earnings. 

The corporate reported a 75 per cent fall in internet revenue to Rs 138 crore for the quarter ended June 2025, in comparison with Rs 555 crore in the identical interval final 12 months. Income from operations fell 9 per cent year-on-year to Rs 2,262 crore.

Whereas the gold mortgage phase remained a shiny spot with 10 per cent income progress (Rs 1,904 crore), the microfinance (MFI) enterprise continued to weigh closely, with revenues dropping 53 per cent to Rs 361 crore and a 23 per cent QoQ decline within the Asirvad MFI mortgage guide.

Brokerages cautious however hopeful on Manappuram Finance

Jefferies maintained a “maintain” score, elevating its goal value to Rs 275, citing in-line revenue aided by decrease MFI provisions, whilst internet curiosity revenue (NII) remained weak. It flagged muted buyer progress, decrease NIMs, and the wind-down of non-gold loans as key overhangs, however famous valuations have been affordable. Jefferies mentioned the corporate’s new CEO would play a key position in any potential re-rating.

CLSA retained its “outperform” score with a goal of Rs 260, regardless of Q1 internet revenue and pre-provision working revenue lacking estimates by 9 per cent. The brokerage highlighted stress on yields and spreads however aligned with administration’s view that profitability ought to return by Q4FY26.

Administration commentary and outlook on Manappuram Finance

The corporate mentioned it’s working by means of a difficult section however expects stability forward. Lending charges throughout high-ticket loans have already been trimmed, with plans to scale back them additional to round 18 per cent over the subsequent 4 to 6 quarters.

Mortgage progress of 13 per cent QoQ was pushed by greater ticket sizes, although buyer additions remained sluggish. Regardless of near-term challenges, administration stays assured the worst is behind.