Manba Finance operates as a non-banking financial company providing vehicle and small business financing across seven Indian states, with its assets under management reaching INR 1,731 crores as of June 30, 2026. The business is heavily concentrated in two-wheeler loans, which account for 84.1% of its product mix, with the remainder spread across small business, top-up, and three-wheeler loans. The company commands a 12% to 14% market share in its stabilized states of Maharashtra, Gujarat, and Rajasthan, leveraging a network of over 1,700 dealers across 130 locations. Its net interest margin stood at 13.63% for FY26, supported by a gross yield of 22.85% and an average borrowing cost of 10.64%. This margin level is highly favorable for a vehicle-focused NBFC, reflecting the company's ability to price risk efficiently while maintaining a secured portfolio where over 95% of assets are collateralized.
The durability of these economics stems from a combination of proprietary technology and localized cost advantages that are difficult to replicate quickly. The company has built 90% of its tech and software in-house, enabling it to sanction over 60% of loans in one minute and 92% within a day. This rapid turnaround time creates high switching costs for its dealer network, which relies on quick disbursals to close vehicle sales. Furthermore, 85% of collections are managed in-house by a 600-person team, keeping operating costs lower than competitors and allowing the firm to maintain a credit loss ratio consistently below 1.1%. While vehicle financing is inherently competitive, Manba's focus on under-penetrated states like Uttar Pradesh, where it holds only a 1% market share, provides a long runway for growth without immediate margin erosion from larger national players.
The inflection point driving the business over the next 18 to 24 months is a deliberate shift from a single-product dependency toward a diversified, higher-yield portfolio. Management has guided for asset growth of 35% to 40% for FY27, targeting an AUM of INR 2,300 to INR 2,400 crores by the end of the current fiscal year. By FY28 or early FY29, the two-wheeler loan share is targeted to reduce to 65% of the total portfolio, replaced by higher-yield products like MSME Loan Against Property, which launched in February 2026 at an 18-19% yield, and used two-wheeler financing. The company is also expanding geographically into Karnataka via a partnership with Sreesastha, targeting INR 60 to INR 75 crores in AUM from that market alone in FY27, followed by an entry into Tamil Nadu. This mix shift and geographic expansion are expected to sustain net interest margins in the 13% to 14% range while driving the return on assets toward a targeted 3.5%.
Management's execution over the past year demonstrates a clear track record of meeting or slightly exceeding its stated targets. In November 2025, the firm guided for an AUM of INR 1,700 to INR 1,750 crores by the end of FY26 and a 30% to 35% CAGR in profitability; it ended FY26 with an AUM of INR 1,713 crores and grew its Q1 FY27 profit after tax by 36% year-on-year to INR 13 crores. The borrowing cost was successfully reduced from 10.80% to 10.64% as guided, and the MSME LAP product was launched on the promised timeline of February 10, 2026. On capital allocation, the firm is executing a planned INR 100 crore equity raise via preference shares by September or October 2026 to fund growth, maintaining its leverage ratio below the self-imposed cap of 4.25x. This disciplined approach to funding has kept the capital adequacy ratio at a robust 24.40% as of June 2026.
The quantified earnings path targets a profit after tax of INR 65 to INR 70 crores for FY27, supported by a return on equity of 14% to 15%. For this trajectory to hold, the company must successfully scale its new MSME LAP and three-wheeler portfolios without a significant deterioration in asset quality, particularly as it enters new geographies. The single most important watchpoint is the performance of its three-wheeler EV financing, which management acknowledges carries higher risk due to vehicle overloading and faster depreciation. The company has mitigated this through an OEM tie-up with TVS Motor that provides a 50% hit coverage on POS outstanding for NPAs or seizures. If credit costs in this new segment remain contained below the historical 1.12% level, the operating leverage from a 35-40% AUM growth rate against a stable operating expense ratio of 5.6% will drive the targeted earnings expansion.
companyname: Manba Finance Limited ticker: MANBA sector: NBFC - Vehicle Finance and MSME Lending Manba Finance Limited is a non-banking financial company (NBFC) that lends primarily to individuals buying two-wheelers in semi-urban and rural India. The core product is a secured retail loan for a new motorcycle or scooter, with an average ticket size of INR 80,000-85,000 and a yield around 21.5%. As of June 30, 2026, the company operates in 130 locations across seven states - Maharashtra, Gujarat...
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FY27 AUM growth guided at 25-30% driven by business plan and expansion into new geographies
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