Manappuram Finance Q4 Profit Slips 3% Amid Rising Costs, Consolidated Loss at INR 203 Crore
Despite a weak final quarter, Manappuram Finance reported an 8 per cent growth in standalone net profit for the full year, closing FY25 at INR 1,783.25 crore
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Manappuram Finance Ltd reported a 3 per cent year-on-year decline in its standalone net profit to INR 414.3 crore for the fourth quarter of FY25, weighed down by a sharp increase in finance costs and provisioning for impaired financial instruments. The company disclosed the results in a regulatory filing on Friday.
Interest income for the Kerala-based non-banking financial company rose 15 per cent year-on-year to INR 1,735.92 crore during the January–March 2025 quarter. However, total expenses surged 25 per cent to INR 1,191.51 crore, driven largely by a steep 25 per cent rise in finance costs, which climbed to INR 609.54 crore from INR 488.68 crore in the same quarter last year.
Despite a weak final quarter, Manappuram Finance reported an 8 per cent growth in standalone net profit for the full year, closing FY25 at INR 1,783.25 crore. But the picture was notably different on a consolidated basis. The company posted a net loss of INR 203.18 crore for Q4FY25, a sharp reversal from a profit of INR 563.51 crore in Q4FY24. This was attributed primarily to a significant spike in loan loss provisions, particularly within its microfinance subsidiary, Asirvad Micro Finance. Impairment provisions on financial instruments soared nearly fivefold year-on-year to INR 919.21 crore during the quarter.
The company's board, in a key leadership reshuffle, approved the appointment of Deepak Reddy as chief executive officer and key managerial personnel effective August 1, 2025. Current MD & CEO, Nandakumar VP, will be redesignated as managing director from July 31. Reddy will report directly to the MD. Additionally, the board approved an equity investment of up to INR 500 crore in Asirvad Micro Finance, to be made in one or more tranches.
In a strategic move earlier this year, Bain Capital announced its entry into a joint control arrangement with the promoters of Manappuram Finance. Through its affiliates BC Asia Investments XXV and XIV, Bain will invest INR 4,385 crore via preferential allotment of equity shares and warrants, acquiring an 18 per cent stake in the company on a fully diluted basis.
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