Manappuram Finance’s Bottom-line Dips Amid Micro Finance Slowdown.

Thrissur; January 2026: Indian gold-loan financier Manappuram Finance (MNFL.NS), opens new tab reported a third-quarter profit drop on Thursday, as a slowdown in its struggling microfinance segment and higher financing costs weighed. The Thrissur, Kerala-based company’s consolidated net profit fell 14.5% year-on-year to 2.41 billion rupees ($26.21 million) for the quarter ended December 31st.

The lender has faced higher default rates on microfinance loans, which are collateral-free small loans to borrowers, after a period of aggressive lending in the segment. This has prompted it to adopt a more cautious approach.

Manappuram’s revenue from operations fell 8% to 23.53 billion rupees, mainly due to a 55% drop in revenue from its microfinance segment. However, a cautious lending approach in the microfinance segment helped lower the loan loss provisions by 36% year-on-year.

The company’s mainstay gold loan segment reported robust growth aided by record-high prices of the precious metal. Consolidated gold loan assets under management (AUM) grew 58% year-on-year to 387.54 billion rupees, with total AUM rising 18%. However, finance cost in the standalone business, which consists mainly of the gold loans business, rose 21%.

As per industry experts, the turmoils in the company have recently surfaced when the learned Kerala High Court absolved Actor Mohanlal Viswanathan from liability in consumer proceedings arising out of alleged false advertisement by Manappuram Finance and held that mere endorsement or appearance in advertisement does not create liability for deficiency of service or unfair trade practice in absence of direct transactional nexus with consumer.

According to the complainants, they were “attracted by the offer made by the opposite parties” and decided to accept the loan on the assurance that the interest rate would be 12% per annum “as assured by the 2nd opposite party through his advertisement in various media”. Later, when the complainants approached Manappuram Finance for closure of the loan and release of gold ornaments, a higher interest rate than what was advertised was demanded. Aggrieved thereby, they filed Complaint before the District Consumer Disputes Redressal Commission (DCDRC), Thiruvananthapuram, seeking refund of excess interest and compensation of ₹25 lakhs for loss, mental agony and injury.

Prior, in July 2025, the Panipat Branch of Manappuram had allegedly provided 190 grams of Fake Golds to a customer replacing his Original Golds which he had deposited for availing a loan. What was most shocking that the company had accepted brass jewellery from a woman by mistaking it for gold. Strangely, in this case the complaint was made not by one, not two, but by four jewelers in the town. In fact, it was found that a woman was walking around in Panipat with fake gold jewellery with brass having hallmarks, who targeted many different jewelers in Insar Bazar Panipat.

In December 2025, the Kerala based company incurred a loss of Rs. 07.47 Crores from one single transaction in their Sector 51, Hoshiarpur Village Branch. Internal investigation conducted by the company revealed that 57 loans were fraudulently sanctioned between Feb 2023 and August 2025.

Team Maverick.