Manappuram Finance Reports Mixed Financial Results for Q4FY25

Manappuram Finance, a key player in the gold loan non-banking financial company (NBFC) sector, disclosed its financial performance for the fourth quarter of FY25 on Friday. The report reveals a 3% decline in net profit, dropping to Rs 414.3 crore compared to the same period last year. This downturn is attributed to increased finance costs and higher provisions for impairments on financial instruments.

Strong Interest Income Growth

The Kerala-based lender experienced a 15% year-on-year increase in interest income, reaching Rs 1,735.92 crore during the January to March quarter of 2025. However, total expenses surged by 25%, amounting to Rs 1,191.51 crore. The finance costs saw a substantial rise, climbing to Rs 609.54 crore from Rs 488.68 crore in Q4FY24. Despite the challenges faced in Q4, Manappuram Finance reported an 8% increase in net profit for the entire fiscal year, totaling Rs 1,783.25 crore.

Consolidated Financial Performance

On a consolidated basis, Manappuram Finance faced a setback, reporting a net loss of Rs 203.18 crore compared to a net profit of Rs 563.51 crore in Q4FY25. This consolidated result incorporates financial data from subsidiaries such as Manappuram Home Finance, Asirvad Micro Finance, Manappuram Insurance Brokers, and Manappuram Comptech and Consultants. The elevated loss is primarily linked to increased loan loss provisions, with impairments related to financial instruments—particularly microfinance loans—soaring nearly five-fold to Rs 919.21 crore year-on-year.

Leadership Changes and Strategic Investments

In a significant management update, the board of Manappuram Finance has approved the appointment of Deepak Reddy as the new Chief Executive Officer and Key Managerial Personnel, effective August 1, 2025. Current Managing Director and CEO Nandakumar VP will transition to the role of "Managing Director" as of July 31, 2025. Reddy will report directly to Nandakumar. Additionally, the board has greenlit an investment of Rs 500 crore in the equity shares of its subsidiary, Asirvad Micro Finance, through multiple tranches.

Strategic Partnership with Bain Capital

Earlier this year, Bain Capital, a prominent private equity firm, announced plans to acquire joint control of Manappuram Finance through its affiliates, BC Asia Investments XXV and BC Asia Investments XIV, in collaboration with existing promoters. As part of this strategic agreement, Bain Capital is set to invest Rs 4,385 crore to secure an 18% stake on a fully diluted basis via the preferential allotment of equity and warrants.

Market Reaction

On Friday, shares of Manappuram Finance remained stable, closing at Rs 228.80 on the National Stock Exchange (NSE).

As investors watch closely, the company’s strategic moves and financial adjustments will be pivotal in shaping its future in the competitive NBFC landscape.