Manappuram Finance | Asia Pacific MFI subsidiary 1QF27: Steady recovery

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

August 7, 2026 03:27 PM GMT

Manappuram Finance | Asia Pacific

Morgan Stanley India Company Private Limited+

Kushan Parikh, CFA

Equity Analyst

MFI subsidiary 1QF27: Steady

recovery

Subramanian Iyer

Equity Analyst

Sakshi V Chaplot

Research Associate

Key Takeaways

Asirvad MFI, a subsidiary of Manappuram (MGFL), posted 1QF27 profit of

Rs207mn, versus our estimate of a Rs94mn – PPOP beat driven.

Assuming Rs5.1bn of standalone profit (our estimate) for 1QF27, MGFL will likely

report a consolidated profit of Rs5.4bn vs. our forecast of Rs5.3bn.

We had assumed provisions of Rs521mn (Rs90mn in 4QF26); actual was

Rs660mn.

GNPA 4.79% (-6bp QoQ), NNPA 1.42% (-18bp QoQ) were lower and provision

cover of 71% was higher (+3.4ppt QoQ). We don't have Stage 2 data.

We await details on outlook: a) provisions and write-offs, b) AUM growth, and c)

and debt funding availability.

Other details:

• We note that Asirvad had restated prior quarters' income line items from

3QF26 onwards. Hence, F25/1HF26 interest income was lower by 6%/8%,

while fee and other income are restated higher, total income remains largely

unchanged.

• Asirvad sold Rs2.04bn NPAs (net value zero) in 1Q to Prasaditya ARC (PARC)

for a consideration of Rs2.04bn (of which, Rs1.77bn is in Security Receipts).

Total carrying amount of SRs stood at Rs4.07bn (Gross book value Rs5.05bn,

Manappuram Finance Ltd (MNFL.NS, MGFL IN)

India Financials | India

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 7, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (bn)

Avg daily trading value (mn)

Equal-weight

Attractive

Rs270.00

(26)

Rs366.75

Rs381.55-245.15

939

US$3.6

US$14

Fiscal Year Ending

03/26 03/27e 03/28e 03/29e

EPS (Rs)**

BV/shr (Rs)*

ModelWare net inc (Rs

mn)

P/E

P/BV

Return on avg eqty

(%)**

11.83 25.56 30.11 33.91

165.0 187.1 215.7 243.9

10,033 24,006 29,683 35,006

21.2

1.5

7.2

14.4

2.0

14.5

12.2

1.7

14.9

10.8

1.5

14.8

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

* = GAAP or approximated based on GAAP

…