Manappuram Finance shares fall 3% after Q4 earnings: Here's why Jefferies, other brokerages are bullish

Shares of Manappuram Finance fell more than 3% to to Rs 296.70 apiece on Tuesday, even as several brokerages maintained bullish views on the stock after the non-bank lender posted a net profit of nearly Rs 404 crore for the fourth quarter of FY26, compared with a net loss of Rs 191 crore in the same quarter of FY25.

The company announced its results post market hours on Monday. Sequentially, consolidated net profit jumped about 68% from Rs 241 crore reported in the third quarter of FY26. Revenue from operations grew nearly 11% year-on-year to Rs 2,614 crore in Q4 FY26, up from Rs 2,361 crore in the corresponding period last year.

Manappuram Finance’s total income rose more than 11% YoY to Rs 2,626 crore, while total expenses grew around 21% YoY to Rs 2,062 crore during the January-March quarter of the financial year ended March 31, 2026

Manappuram Finance dividend announcement

Along with the Q4 results, Manappuram Finance declared an interim dividend of Rs 0.50 per share (25%) with a face value of Rs 2 each. The record date to determine the eligibility of shareholders set to receive the payment has been fixed on May 11.

Segment-wise, the company’s gold loans and others category posted a sharp 136% jump in revenue to Rs 2,331 crore in the quarter under review, compared with Rs 990 crore in the year-ago period. The robust growth in the gold loans segment helped offset a steep 79% year-on-year decline in revenue from the microfinance business, which fell to Rs 294 crore in Q4 FY26 from Rs 1,372 crore in Q4 FY25.

For the entire financial year 2026, Manappuram Finance’s consolidated net profit, however, declined over 17% YoY to Rs 1,003 crore, from Rs 1,216 crore in FY25 overall. Revenue from operations fell 5% to Rs 9,509 crore in the financial year 2025-2026.

Before Tuesday’s decline, Manappuram Finance’s shares had been on an upward trend, gaining over 17% in the past month, after Bain Capital acquired a 41.66% stake in the company and assumed joint control.

Jefferies on Manappuram Finance

Jefferies said that Manappuram Finance’s Q4 net profit beat its estimate, and it sees inflection ahead. The international brokerage added that the strong loan growth is led by gold loans, and margins are expected to inch up after bottoming out.

“We factor tad better NIMs, lower opex and Bain’s capital infusion (EPS-dilutive, but modestly BV-accretive). We raise FY27-28e PAT 12–16%, while EPS moves down 5–8%. Manappuram Finance has seen sharp EPS downgrades in FY26 driven by NIM compression and elevated credit costs. We see an inflection with NIMs bottoming out and provisions peaking out. We expect profit to rise 2.6x with ROE improving to 13% (7% FY26) over FY26-28E. At 1.6x FY27E BV, valuations seem reasonable,” it said.

Jefferies upgraded the stock to ‘Buy’ from ‘Hold’, and raised its target price to Rs 360 per share from Rs 285 per share. This implies an upside potential of nearly 18% from the stock’s previous closing price.

Morgan Stanley on Manappuram Finance

Morgan Stanley maintained its ‘Equal-weight’ rating on Manappuram Finance shares, with a target price of Rs 270 apiece, implying a downside potential of more than 11% from the stock’s previous closing price, ET Now reported.

The international brokerage said that the company’s gold loan business saw a sharp surge, aided by higher ticket sizes and gold prices. However, it remains cautious due to limited visibility in the non-gold business.

Motilal Oswal on Manappuram Finance

Motilal Oswal maintained its ‘Neutral’ rating on the shares of Manappuram Finance, but raised its target price to Rs 315 apiece, from Rs 290 apiece. The latest target price implies an upside potential of more than 3% from the stock’s previous closing price.

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“Manappuram Finance delivered a strong performance in the gold loan segment, supported by rising gold prices, healthy demand, and a gradual shift in customer preference toward formalised financing. However, growth in the non-gold portfolio has remained subdued, primarily due to ongoing asset quality concerns, even as the VF and Asirvad MFI segments show early signs of improvement,” it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)