Manappuram Finance

Gaurav_Catalyst · January 23, 2026, 1:15pm

Q3FY2026 results are declared today. Approx. Rs. 225 Cr losses before accounting adjustment related to taxes. Major losses due to provisions of Rs. 216 Crores against interest income of Rs. 307 Crores.

During Q3FY2026, Asirvad also raised an equity amount Rs. 250 Cr from Manappuram - which seems to be fully adjusted against losses, hence, networth & Debt to equity ratio maintained somehow.

Seems, BAIN appointed KMPs cleaning balance sheet (read it shit ) diligently. Let’s see how much still left.

Gaurav_Catalyst · January 29, 2026, 2:06pm

Q3 FY2026 Results declared today. Gold is shining .. rest all categories are burning (cash as well as value).

Yield on Gold loan is reducing → which is enabling manappuram to fight well with other leading players → To not only maintain existing Gold loan AUM but grow as well.

Opex to AUM ratio going forward will be another interesting data point to monitor which if contained (or reduced) will help improve ROA & ROE.

Omkar_Ranjan · January 30, 2026, 7:48am

They are not growing any other segment it seems… Housing, MSME looks flat. Vehicle Finance and Micro Finance on reduction mode. The NPA ratios in other segmnets are showing the true colour of these books in an environment of same or reducing denominator of Gross Loans. Gold loan operating metrics are improving.

TKarthik · January 30, 2026, 7:50am

Okay, please excuse if this question is irrelevant to the business analysis. I was going through the investor presentation and find it very odd that the CEO of the Housing Finance division (with an AUM of 1900 crores) is a B.Tech. Graduate with a total experience of 6 years. Can anyone please help me understand this?

Omkar_Ranjan · January 30, 2026, 7:53am

I too thought about the same and found it weird.Could be from the founder’s extended family/ relative

raku · January 30, 2026, 8:34am

Can someone tell me when will ashirwad come with an ipo or by what quarter the losses be complete. I think that is the main thing holding the stock back.

Gaurav_Catalyst · January 30, 2026, 12:02pm

You are making a logical observation. This champ (and many like him) is because of blessings from Mr. Nandkumar.

Whole thesis of potential rerating of Manappuram is now based on the fact how soon BAIN appointed KMPs are on all key positions - by replacing Nandkumar’s team. Infact Manappuram CFO (Ms. Bindu) is also no great Vs the expected skillset in 2nd Largest Gold loan CFO.

Gaurav_Catalyst · January 30, 2026, 12:10pm

Asirvaad IPO DRHP filing was a trap and it looks it is now off the table at least till BAIN is running the show.

Losses can turn into profits, as soon as provisioning is contained, which seems to be far away atleast till Sep 2026.

There are so many variables which are holding back (or supporting from fall).

Omkar_Ranjan · January 31, 2026, 3:50am

Key monitorables going ahead :

Opex / AUM should fall and be closer to competition. This will be critical for improvement in RoA.
Leverage levels as they plan to increase RoE
Scaling up of gold loans despite gold price volatility with yields closer to competition
Run down of poorly executed non-gold loan book (NPA ratios will look higher as they run down the book and don’t do fresh disburements)
Stabilise Asirvad and get rid of the majority holding through an IPO / or rather get out of this business
Governance and operational rigour being brought by new set of senior management in compliance, risk and internal audit
Possible merger with Tyger Capital (incase Bain transaction faces further headwinds from the regulator) , subsequent balance sheet quality and equity swap ratios

Next 3-5 years would be interesting to see what the new CEO and joint management control of the promoter and Bain would do. Early signs of how this business would shape up should be visible in FY27.

sathisheluru · February 7, 2026, 1:13pm

Piyush_Vats · February 14, 2026, 5:59pm

Manappuram Finance has finally received approval from RBI for Bain acquisition upto 41.66%.

Disc. Invested

maheshkumar · February 15, 2026, 11:42am

Currently trading at 2 Price to book while muthoot at 4 Manappuram is half the valuation of muthoot

Now with support of Bain I feel 2.5 plus price to book is possible

Also expecting 20% CAGR growth in book value in next 3 years

Everything is now in favour

Bain RBI approval

High gold price

Tightening of unsecured loans in India

New branch opening no permission required as per new regulations

There will be smooth transition for Nandkumar s retirement

Microfinance is turning around

Now execution is the key .All the favourable ingredients are there .Couldnt ask for better .Feels like 300 will be new base now hard to go below 300

In this AI disruption world financials are very good bets .

Competition is getting worse but gold loan market is expanding a) due to rising gold price b) government promoting secured lending c) now the gold loan stigma is no more due to popularity in recent years with all big shots like Bacchan and srk and many South stars advertising it

Business is operationally intensive due to requirements of gold purity checking ,gold security gold lockers etc so takes time for new player to get the market share

In India gold is like credit card

with questions on dollar reliance many countries are looking for alternative currency and all central banks are aggressively buying it

Warren buffet always discouraged gold as it has no intrinsic value or productivity but i feel he didn’t see /realise US dollar reliance will eventually fade

Why one particular country’s currency should hold so much importance everyone needs universal currency

Bitcoin has many issues .

Even if we don’t have universal currency agreement now having gold reserve is the way to go and it will keep comonding gold

Now Bain has realised this all and entered Manappuram when things

were very pessimistic with Manappuram .Bain found a gold .even without doing anything its investment is up 25%

Now with its knowledge and skills and experience it can do wonders in a sector where there are so many tailwinds
How it will pan out

To simplify

Bain Entry → Govern Upgrade → Risk Reduction → Cost of Funds ↓ → Profitability ↑ → Growth ↑ → ROE ↑ → Valuation Rerating ↑ → Institutional Buying ↑ → Long-Term Stock Compounding ↑

Introduction of Global Best Practices in Governance

Increased Confidence Among Institutional Investors, Banks, and Credit Markets
Improved Credit Ratings and Lower Perceived Risk Profile

Reduction in Cost of Borrowing

Reduction in Promoter Discount and Re-rating Toward Institutional NBFC Valuation Levels

Increased Institutional Investor Participation and Long-Term Capital Inflows

Structural Re-rating of Manappuram into a Higher-Quality Financial Institution

Long-Term Stock Price Compounding and Significant Shareholder Wealth Creation

long term trust and visibility is possible now..…..opens up a new chapter .Can be set and forget portfolio stock

Gaurav_Catalyst · February 16, 2026, 4:38am

Honestly, (and as an individual investor) … it is the BAIN factor only because of which everyone has seen Manappuram at a level never seen before.

So as a shareholder, discrediting them and claiming BAIN enjoying +ve returns without doing anything - is like discrediting GOD for everything we have received as humans on this mother earth.

Just on speculation of Manappuram’s life without BAIN, it was breathless → Imagine where it would be if it was true :)

maheshkumar · February 16, 2026, 6:28am

I disagree with respect

There are many like Bain everywhere

Manappuram has sustained and evolved in a good way

It survived covid also

So total credit to to Manappuram

It’s manappuram who bought Bain not other way round

Vp nandkumar was looking strategically and he chose Bain

If not Bain then manappuram would have found some one else there are many good investors around

Even without doing anything Bain got 25% return what I meant was Bain just begun journey in manappuram and due to Bain expertise and Bain brand value and track record of Bain manappuram stock Got rerated .Full credit to Bain

In the mean time muthoot is falling may be market expecting manappuram to gain share from muthoot post Bain

Vishagan_Ramasamy · February 16, 2026, 1:38pm

In Today’s Paper, there is an article about the challenge that Bain Cap is facing due to RBI norms.

Piyush_Vats · March 26, 2026, 12:26pm

Open offer by Bain goes live on 6 April at Rs. 236 for 26% stake.

Disc. Invested

maheshkumar · April 22, 2026, 3:20pm

Now Bain is officially in

No regulatory overhang left

Let’s see how Bain shapes the company

Definitely Bain’s vast expertise will make Manappuram strong

Also it can buffer some unexpected shocks

Intersting time ahead

Shankar · April 23, 2026, 12:08pm

Bain’s experience of investing in financial sector in India does not appear to be great. They had invested in LT Finance, Axis etx

maheshkumar · April 25, 2026, 4:25am

They had minority stake there ,no control

senthil.prabhuvp · April 29, 2026, 8:12am

1.The Successful “India” Legacy

Bain Capital’s history in India isn’t just about banks; they have a track record of identifying structural shifts before they become mainstream.

Hero MotoCorp (The Honda Exit): In 2011, Bain (along with GIC) stepped in to help the Munjal family buy out Honda’s 26% stake.
- The Result: This was a massive success. Bain helped bridge a critical financing gap during a messy corporate divorce. They exited 3–4 years later with a 2x return (doubling their money) and nearly ₹360 crore in dividends alone.
Genpact (Scaling the Leader): In 2012, they bought a 30% stake for $1 billion. They didn’t just hold the stock; they placed four directors on the board and worked with management to move Genpact from “simple back-office work” to “high-end data analytics.”
- The Result: They successfully exited between 2017 and 2023. While the stock had cycles of volatility, their operational involvement kept Genpact as a market leader.
Emcure Pharmaceuticals: They bought a stake from Blackstone and helped professionalize the operations before a successful IPO journey .

2.The Global Turnaround Blueprint

Globally, Bain is famous for the “Consultant-Led” approach (thanks to their roots in Bain & Company). They don’t just look at P/E ratios; they look at Supply Chains and Unit Economics.

Domino’s Pizza: Perhaps their most famous turnaround. They bought it when it was a struggling delivery brand, overhauled the menu, and implemented a tech-first approach. It became one of the best-performing stocks on the NYSE for a decade.
Burger King & Dunkin’ Donuts: They have a specific legacy of taking “tired” consumer brands, stripping away inefficient costs, and scaling them globally.

3. Why Manappuram is “The New Chapter”

In your Axis and L&T Finance examples, Bain was a Passive Passenger. They couldn’t change the CEO or the strategy. They just had to wait for the market to move.

With Manappuram Finance, they are becoming the Promoter/Control Owner.

Fundamental Strategy: They are currently applying their global “BFSI” (Banking, Financial Services, and Insurance) playbook. Expect them to aggressively push technology-led gold lending and potentially spin off or “clean up” the non-gold segments (like Asirvad Microfinance) to reduce the risk profile.