Manappuram Finance Shares in Focus; Reports ₹191 Cr Loss in Q4 FY25, Declares Dividend

Manappuram Finance’s fourth-quarter results for FY25 delivered an unexpected blow to investors, as the company reported a net loss of ₹191 crore, a sharp contrast to its ₹562 crore profit in the same quarter last year. The primary reason for the decline was a massive spike in non-performing assets (NPAs) in the microfinance vertical. 

Bad loans and provisions in the microfinance unit surged over five-fold to ₹849 crore, contributing to total provisions of ₹919 crore for the quarter. 

Gold Loan Business Remains a Bright Spot 

Despite the pressure from microfinance, Manappuram’s core gold loan business continued to show resilience. The segment grew 14% year-on-year to ₹1,850 crore, buoyed by soaring gold prices during the January–March period. Notably, the gold loan segment now accounts for 75% of the company’s total revenue. 

The company’s total Assets Under Management (AUM) rose 2.3% to ₹43,034 crore, even as Net Interest Income (NII) dropped 6.7% to ₹1,464 crore, reflecting margin pressure. 

Q4 FY25 Dividend Declared Despite Loss 

In a move that signals confidence, Manappuram Finance declared an interim dividend of ₹0.50 per share. The record date to determine eligible shareholders has been set for May 15, 2025. While the payout is modest, it reflects the company's intent to maintain shareholder value despite financial setbacks. 

Share Price Performance 

Manappuram Finance Limited shares were trading at ₹232.34, up ₹3.72 or 1.63% from the previous close of ₹228.62. The stock opened slightly lower at ₹227.10, dipped to an intraday low of ₹226.50, but recovered steadily to touch a high of ₹232.40. 

Read More: RBI’s Gold Loan Norms May Hit Growth of Muthoot, Manappuram, and Others. 

Conclusion 

Manappuram Finance's Q4 FY25 results paint a mixed picture while the sharp loss driven by soaring NPAs in the microfinance segment raises red flags, the steady growth in its gold loan business offers a silver lining.  

The interim dividend announcement, despite the quarterly loss, suggests management's confidence in the underlying fundamentals and long-term prospects. As the company navigates regulatory headwinds and works to stabilise asset quality, investors will closely watch how effectively it can balance growth and risk in the coming quarters. 

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