Manba Finance profit edges up as higher tax offsets lower interest
Standalone operating margin slipped as expenses grew faster than revenue, while lower interest costs lifted pre-tax profit before a sharp rise in the tax rate.
Filed 27 Oct 2026, 14:27 IST · Manba Finance Ltd (MANBA)
Key takeaways
- Standalone operating margin slipped 0.84 percentage points QoQ as expenses rose 8.12%, faster than revenue at 5.54%.
- Net profit rose only 3.54% QoQ despite 34.82% PBT growth because the tax rate climbed 19.11 percentage points to 36.76%.
- At 64.85%, operating margin was 3.56 percentage points above the 61.29% median for 35 reported financial-services peers.
Price around the results
Costs outpaced revenue in Q2FY27
Manba Finance’s standalone revenue grew 5.54% QoQ, but expenses increased 8.12%, limiting operating-profit growth to 4.19%. Operating margin therefore narrowed by 0.84 percentage points to 64.85%.
Lower interest helped PBT, but tax absorbed the gain
Interest expense fell 7.01% QoQ while depreciation was unchanged, helping profit before tax rise 34.82%. The tax rate increased 19.11 percentage points to 36.76%, so net profit grew only 3.54%; other income contributed just 0.09% of PBT.
Margin remains above the sector median
Manba Finance’s 64.85% operating margin was 3.56 percentage points above the 61.29% median among 35 Financial Services peers that had reported the quarter. Sequentially, however, margin declined from 65.69%, making Q2FY27 the second reported quarter in this trend with a lower margin.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹98 cr | ₹93 cr | +5.54% |
| Other income | ₹0 cr | ₹0 cr | — |
| Expenses | ₹34 cr | ₹32 cr | +8.12% |
| Operating profit | ₹63 cr | ₹61 cr | +4.19% |
| Operating margin (%) | 64.85% | 65.69% | — |
| Interest | ₹40 cr | ₹44 cr | -7.01% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹22 cr | ₹16 cr | +34.82% |
| Tax | ₹8 cr | ₹3 cr | +180.99% |
| Net profit | ₹14 cr | ₹13 cr | +3.54% |
| EPS (₹) | ₹2.73 | ₹2.64 | +3.41% |
Operating margin of 64.85% compares with a Financial Services sector median of 61.29% across 35 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.11% | +0.33% |
Volume on the results session was 1.08× its 20-day average.
What to watch
- Whether operating margin recovers from 64.85% after the 0.84-percentage-point QoQ decline.
- Whether expenses grow slower than revenue after rising 8.12% versus revenue growth of 5.54%.
- Whether the tax rate moderates from 36.76% after the 19.11-percentage-point QoQ increase.