Any current/future new fundraising through debt or equity?

Manba Finance is exploring new funding avenues including External Commercial Borrowings (ECBs) and bonds, but no definite timeline for success is mentioned. The company is focusing on issuing retail NCDs (Non-Convertible Debentures) with a denomination of INR 10,000 to increase investor base. Currently, there are about 8,000 NCD holders alongside 20,000 shareholders monitoring the company closely. A plan is mentioned to potentially launch an NCD debt IPO within six months to a year. The company relies on NCDs to optimize borrowing costs, especially with rate reductions linked to repo rate cuts

Any current/future capex/capital investment/strategic investment?

Manba Finance is leveraging its existing infrastructure and senior professionals to achieve growth, implying no large immediate capex. Expansion plans include adding new locations, especially in states like UP, MP, and Chhattisgarh where the company has low market penetration. The company is focusing on cautious and selective growth in small business loans and other products rather than aggressive expansion. There is mention of digital process enhancements like a new collection app improving collection efficiency. No explicit mention of significant current or future capital expenditure or stra

Future growth expectations in sales/revenue/volumes?

Manba Finance expects 30-35% year-on-year growth in AUM and revenue, supported by expansion into new geographies such as UP, MP, and Chhattisgarh with untapped market potential. Two-wheeler industry growth is projected around 10-12% annually; company targets outpacing industry growth through market share gains, new locations, and product diversification. Vehicle numbers are expected to grow 10-12%, with price inflation driving effective revenue growth to around 14-15%. Growth will also come from diversification into EV financing, three-wheelers, used cars, small business loans, and top-up loan

Future growth expectations in earnings/operating earnings/profits/EPS?

Manba Finance expects PAT to reach INR 85-100 crore by FY27, supported by a 30-35% YoY growth in AUM. The company plans to leverage operating expenses by utilizing senior professionals and infrastructure more efficiently. A 1-1.5% reduction in borrowing costs is anticipated due to improved credit rating prospects (aiming for A-minus). Growth driven by network expansion in under-penetrated states such as UP, MP, and Chhattisgarh. Two-wheeler portfolio growth expected at 30-35%, outpacing industry growth of 10-12%, due to market share gains and new geographies. Small business loans and diversifi

Manba Finance LtdQ2 FY26Finance

Manba Finance Ltd Q2 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹130P/E: 13.8Market Cap: ₹672 CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Manba Finance expects 30-35% year-on-year growth in AUM and revenue, supported by expansion into new geographies such as UP, MP, and Chhattisgarh with untapped market potential.
→Two-wheeler industry growth is projected around 10-12% annually; company targets outpacing industry growth through market share gains, new locations, and product diversification.
→Vehicle numbers are expected to grow 10-12%, with price inflation driving effective revenue growth to around 14-15%.
→Growth will also come from diversification into EV financing, three-wheelers, used cars, small business loans, and top-up loans.
→Company aims to keep two-wheeler portfolio at 65-70% of total book while cautiously growing unsecured loans within 10% of AUM.
→Expansion and new product launches are expected to help reach profitability targets of INR 85-100 crore by FY27.

Margin guidance

Category 3

→Manba Finance expects PAT to reach INR 85-100 crore by FY27, supported by a 30-35% YoY growth in AUM.
→The company plans to leverage operating expenses by utilizing senior professionals and infrastructure more efficiently.
→A 1-1.5% reduction in borrowing costs is anticipated due to improved credit rating prospects (aiming for A-minus).
→Growth driven by network expansion in under-penetrated states such as UP, MP, and Chhattisgarh.
→Two-wheeler portfolio growth expected at 30-35%, outpacing industry growth of 10-12%, due to market share gains and new geographies.
→Small business loans and diversified products like EV financing, three-wheeler, and used cars will contribute cautiously to growth.
→Operating leverage benefits expected as matured branches see lower OpEx (4% vs. 7-7.5% for newer branches), improving profitability.
→Overall, steady PAT and EPS growth aligned with robust asset quality and moderate credit loss outlook.

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Fundraise plans

Yes

→Manba Finance is exploring new funding avenues including External Commercial Borrowings (ECBs) and bonds, but no definite timeline for success is mentioned.
→The company is focusing on issuing retail NCDs (Non-Convertible Debentures) with a denomination of INR 10,000 to increase investor base.
→Currently, there are about 8,000 NCD holders alongside 20,000 shareholders monitoring the company closely.
→A plan is mentioned to potentially launch an NCD debt IPO within six months to a year.
→The company relies on NCDs to optimize borrowing costs, especially with rate reductions linked to repo rate cuts.
→No plans for equity fundraising were explicitly stated in the transcript.

Order book

Yes

The transcript from the Manba Finance Limited Q1 FY26 earnings call does not provide specific information on current or expected orderbook or pending orders. The discussion primarily covers financial performance, loan book growth, product segments, and operational highlights without mention of any orderbook or pending orders. Key points related to business status: - AUM at INR 1,415 crore, up 43% YoY. - Disbursement in Q1 FY26 was INR 165 crore, growing 27% YoY. - Expansion of dealer network with 1,258 dealers, up 77% YoY. - Entered new tie-ups for used two-wheelers and four-wheelers. - Started business correspondence partnerships to enhance market reach. - Focus on controlling credit risk and driving growth through selective branch additions. No details were provided about any orderbook or pending orders in the call.

Capex plans

Yes

→Manba Finance is leveraging its existing infrastructure and senior professionals to achieve growth, implying no large immediate capex.
→Expansion plans include adding new locations, especially in states like UP, MP, and Chhattisgarh where the company has low market penetration.
→The company is focusing on cautious and selective growth in small business loans and other products rather than aggressive expansion.
→There is mention of digital process enhancements like a new collection app improving collection efficiency.
→No explicit mention of significant current or future capital expenditure or strategic investments in physical assets.
→Plans include growing assets under management (AUM) by 30-35%, utilizing operational leverage from current resources.
→Exploring new funding avenues and rating agency appraisals (aiming for A-minus) for cost of funds reduction, but no direct capital investments noted.

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