Manappuram Finance Gold Loan Analysis
Metric Movement Analysis
Gold Loan AUM (Standalone) Rs 37,144 Cr (Up 22.8% QoQ, Up 56.8% YoY) Strong rebound in core gold business; growth driven by higher disbursement momentum and gold prices.
Gold Tonnage 58.96 tonnes (Up 3.2% QoQ, Up 2.8% YoY) Stable collateral base; value growth largely price-led.
Standalone PAT Rs 381 Cr (Up 1.4% QoQ, Down 15.9% YoY) Sequential stability but YoY pressure due to higher credit costs and elevated funding costs.
Net Yield ~18.5% (Down from ~19.7% YoY trend) Yield softening compared to earlier years; competitive intensity visible.
Cost of Borrowing ~8.8% (Down from 9.1% QoQ) Funding cost easing sequentially; ALM remains diversified and stable.
ROA 3.1% (Down from 4.6% YoY) Profitability moderated due to higher provisions and operating costs.
ROE 12.0% (Down from 16.0% YoY) Capital returns compressed; profitability not yet fully aligned with AUM growth.
LTV (Implied Safety Margin) 56% (Stable QoQ) Conservative LTV; adequate cushion against gold price volatility.
Per Branch AUM (Gold) Rs 10.5 Cr (Up from Rs 8.6 Cr YoY approx.) Productivity improving as gold AUM scales without branch expansion.
Average Ticket Size Rs 101k (Up vs Rs 75k YoY) Meaningful rise driven by gold price increase and higher customer borrowing capacity.
CRAR 24.62% Strong capital buffer; comfortably above regulatory requirements.
Leverage (Capital Gearing) Borrowings Rs 46,256 Cr (Up 22.6% QoQ) Rapid liability build-up to fund growth; manageable given capital levels.
Stage III Loans (%) ~2.6% GNPA (Standalone trend) Asset quality elevated vs pure gold lenders; needs monitoring.
ECL Provision Coverage Not explicitly disclosed; higher provisioning in MFI segment Microfinance stress continues to impact consolidated credit cost.

Manappuram's gold business is accelerating again, but consolidated profitability remains weighed down by MFI stress and credit costs. Core gold franchise is strong; improvement in return ratios will depend on stabilizing non-gold portfolio.