Manappuram banks on gold for growth but target "aggressive": CreditSights

Gold lifted loans in both its parent firm and microfinance industry.

India’s Manappuram Finance is expecting improved profitability in FY2027 on the back of continued strong growth in gold loans.

Management has guided for improved profitability for the fiscal year, supported by a stable net interest margin (NIM), continued strong growth of gold loans at around 50% growth year-on-year, and a further reduction in consolidated credit costs bearing fruit, noted CreditSights, a Fitch Solutions service.

However, CreditSights does expect some of these to be offset from higher credit costs as effects of the Middle East conflict start to filter through in the upcoming 1-2 quarters.

Manappuram's gold loan growth guidance looks “aggressive”, CreditSights added.

Gold loans rose 31.4% quarter-on-quarter (QoQ) at its parent firm as of end-March on strong gold prices

Manappuram's microfinance subsidiary logged its first quarterly expansion of the last eight quarters, rising 11.5% QoQ, also mainly led by gold loans.

“[Management] reiterated that gold loans will remain the key growth engine and it remains sensibly cautious towards microfinance despite stabilizing asset quality trends,” CreditSights said in a research report published on 6 May 2026.