Manba withdraws PAT target, plans ₹100 cr preference share issue
Q1 revenue of ₹93 cr, up 34% YoY, but management declines to repeat earlier ₹65-70 cr PAT guidance. Now targets 35-40% AUM growth, ROA 3.5%.
— 4 earlier stories on Manba Finance Ltd. →What's new
- Withdrew FY27 PAT target of ₹65-70 crore, citing shifting priorities.
- Guided 35–40% AUM growth for FY27, with ROA of 3.5%.
- Plans to raise ₹100 crore via preference shares for MSME LAP and battery finance.
Why this matters
The PAT withdrawal removes a key performance benchmark just months after it was set, at a time when the company is raising fresh equity and entering new businesses. For a micro-cap NBFC with a debt/equity of 2.91x, the ₹100 cr preference issue will test investor appetite for dilution without a clear profit target.
What we're watching
- Whether the FY27 PAT ends up anywhere near the original ₹65-70 cr range.
- Execution on MSME LAP and battery finance - new verticals for Manba.
- Sri Sastha partnership's contribution to South India AUM.
The full read
Manba Finance reported a strong Q1: revenue of ₹93 crore, up 34% YoY. But the concall was defined by what management took off the table: its FY27 PAT target of ₹65-70 crore is gone. The company instead guided for 35-40% AUM growth, a target that matches its recent run rate, and an ROA of 3.5%. To fund that growth, Manba plans to raise ₹100 crore via preference shares, earmarked for MSME LAP and battery finance. A partnership with Sri Sastha will drive South India expansion. The ₹100 crore raise is significant relative to Manba's market cap of ₹658 crore, and the lack of a PAT goal leaves investors guessing on margins. For a micro-cap NBFC with a debt/equity of 2.91x, the next few quarters will test whether diversification adds earnings or just debt.
Questions answered
- Why did Manba withdraw its FY27 PAT target?
- Management declined to reaffirm the earlier ₹65-70 crore PAT target during the Q1 concall, citing shifting priorities as it enters new business lines like MSME LAP and battery finance.
- What is the ₹100 crore preference share issue for?
- The proceeds will fund diversification into MSME LAP (loan against property) and battery finance, as well as geographic expansion into South India via a partnership with Sri Sastha.
- How does the AUM growth guidance compare with past performance?
- Manba guided 35-40% AUM growth for FY27, consistent with its trailing revenue growth of 37.3%. This suggests management expects current momentum to continue.
- What is Manba's current leverage and profitability?
- As of the latest trailing data, debt/equity stands at 2.91x, ROE at 10.3%, and Q1 FY27 net profit was ₹13 crore on sales of ₹93 crore.
- Is the Sri Sastha partnership new?
- Manba announced a vehicle-financing partnership with Sri Sastha in June 2026 to enter South India. The concall confirmed this is part of its broader expansion strategy.
- What are the risks to Manba's growth story?
- Key risks include execution in new verticals (MSME LAP, battery finance), potential dilution from the preference issue (₹100 cr vs market cap of ₹658 cr), and the absence of a PAT target, which leaves earnings visibility unclear.
Manba Finance Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on MANBA →- 28 Jul 2026 · 2:49 PM IST Manba withdraws PAT target, plans ₹100 cr preference share issue
- 1d ago Manba Finance guides 35-40% AUM growth after strong Q1
- 1d ago Manba Finance posts 38% revenue growth, declares ₹0.25 interim dividend
- 42d ago Manba Finance enters South India with vehicle-financing partnership
- 50d ago Manba Finance taps two lenders for EV and rural bike push