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Manappuram targets 25% to 30% gold-loan growth for FY27
In Q1FY27, gold loans nearly doubled to ₹57,006 crore and accounted for 82% of the company’s AUM as overall AUM rose 57% year-on-year to ₹69,635 crore.
Manappuram Finance says it is targeting around 25% to 30% growth in gold loans in FY27, aiming to keep gold lending as the core of its business while other segments remain under pressure. The company is looking at a longer-run plan to hold 75% to 80% of consolidated AUM in gold loans, and to cap microfinance exposure at 8% to 10%.
In the June quarter, profitability improved as gold loans drove performance, offsetting muted growth in non-gold businesses. Consolidated assets under management rose 57% year-on-year to ₹69,635 crore, with gold loan AUM nearly doubling to ₹57,006 crore, and gold loans contributing 82% of consolidated AUM in Q1FY27 versus 65% a year earlier.
Higher gold prices and a gradual shift toward formalized financing supported gold loan demand even though the quarter is typically seasonally weak. The gold loan yield rose 60 basis points sequentially to 17.7% in Q1FY27, and the profitability metric is expected to remain around 18%, according to analysis cited in the report.
Manappuram plans to expand its gold lending franchise by opening 500 new gold loan branches in FY27, after the Reserve Bank of India removed the prior-approval requirement for such expansion. The company also temporarily stopped vehicle finance lending to focus on collections amid elevated GS-3 and asset quality concerns, and it appointed Ashish Singh as managing director and CEO effective 1 January 2027.
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