Manappuram's operating margin reaches 70.79% as profit more than triples
Revenue growth outpaced expenses both year on year and sequentially, while a lower tax rate also supported the profit increase.
Filed 12 Nov 2026, 16:42 IST · after market close · Manappuram Finance Ltd (MANAPPURAM)
Key takeaways
- Consolidated net profit rose 222.70% year on year as revenue grew 47.21% while expenses fell 4.52%.
- Operating margin expanded 15.82 percentage points year on year to 70.79%, with revenue growth outpacing expense growth.
- The results were filed after market close; in the past eight result reactions, the stock fell seven times, with a median move of 1.96%.
Price around the results
Revenue growth translated into much higher profit
Manappuram Finance reported consolidated net profit growth of 222.70% year on year and 19.92% sequentially. The year-on-year improvement came despite interest expense rising 57.64%, because revenue grew 47.21% and expenses declined 4.52%. Sequentially, revenue increased 10.79%, ahead of the 8.35% rise in expenses, lifting operating profit 11.83%.
Margin expansion continued for a sixth straight quarter
Operating margin widened 15.82 percentage points year on year and 0.65 percentage points sequentially, as costs did not grow faster than revenue. The trend shows operating margin rising from 45.48% in Q1FY26 to 70.79% in Q2FY27, marking six consecutive quarters of expansion. The margin was 19.18 percentage points above the 51.61% median for the 118 Financial Services peers that had reported the same quarter.
Profit quality was not mainly dependent on other income
Other income contributed 1.12% of pre-tax profit, so it was not a major driver of the reported earnings increase. The tax rate fell 2.83 percentage points year on year, which also supported net profit growth, while the sequential tax-rate change was only 0.01 percentage points.
Asirvad focus is on network expansion and efficiency
Management said Asirvad will continue expanding its gold-loan branch network in metros and new geographies. The company also said it is focusing on employee training, performance-linked incentives and productivity improvement, alongside upgraded branch-quality processes and integrated technology. Management said selected MFI branches are being consolidated to improve efficiency and costs, while paperless documentation has been introduced for MFI customers.
The market has not yet reacted to the filing
The consolidated results were filed after market close, so there is no post-results price move to assess yet. Across the past eight result reactions, the stock rose once and fell seven times, with a median absolute move of 1.96%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,362 cr | ₹3,034 cr | +10.79% | +47.21% |
| Other income | ₹10 cr | ₹6 cr | +69.85% | +451.58% |
| Expenses | ₹982 cr | ₹906 cr | +8.35% | -4.52% |
| Operating profit | ₹2,380 cr | ₹2,128 cr | +11.83% | +89.59% |
| Operating margin (%) | 70.79% | 70.14% | — | — |
| Interest | ₹1,380 cr | ₹1,274 cr | +8.35% | +57.64% |
| Depreciation | ₹72 cr | ₹78 cr | -7.79% | -9.01% |
| Profit before tax | ₹938 cr | ₹782 cr | +19.92% | +210.46% |
| Tax | ₹236 cr | ₹197 cr | +19.94% | +179.06% |
| Net profit | ₹701 cr | ₹585 cr | +19.92% | +222.70% |
| EPS (₹) | ₹7.46 | ₹6.23 | +19.74% | +190.27% |
Operating margin of 70.79% compares with a Financial Services sector median of 51.61% across 118 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Asirvad will continue expanding its gold loan branch network in metros and new geographies.
New initiatives
- Asirvad is focusing on employee training, performance-linked incentives and productivity improvement plans.
- Asirvad upgraded branch quality processes with dedicated personnel and integrated technology.
- Asirvad is consolidating selected MFI branches to improve efficiency and costs.
- Paperless documentation has been introduced for MFI customers.
What to watch
- Whether consolidated operating margin holds above 70.79%.
- Whether revenue growth stays ahead of expense growth after the latest 10.79% and 8.35% sequential increases.
- Whether other income remains a small contributor after accounting for 1.12% of pre-tax profit.