Revenue and Operating Performance
Manba Finance’s net sales have shown a strong upward trend, rising from ₹124.96 crores in March 2023 to ₹236.93 crores by March 2025. This represents a near doubling of sales within two years, signalling effective market expansion or increased demand for its financial products. Other operating income fluctuated, peaking at ₹23.23 crores in March 2024 before settling at ₹13.48 crores in March 2025, contributing to total operating income of ₹250.41 crores in the latest fiscal year.
Despite the absence of raw material or manufacturing costs, the company’s employee costs and other expenses have risen in line with its expanding operations. Employee costs increased from ₹28.00 crores in March 2023 to ₹50.02 crores in March 2025, while other expenses grew from ₹78.08 crores to ₹145.74 crores over the same period. Total expenditure excluding depreciation rose accordingly, yet Manba Finance managed to improve its operating profit (PBDIT) from ₹27.23 crores in March 2023 to ₹54.69 crores in March 2025.
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Profitability and Margins
Profit before tax (PBT) has more than doubled from ₹22.79 crores in March 2023 to ₹50.10 crores in March 2025, reflecting improved operational efficiency and revenue growth. Correspondingly, profit after tax (PAT) increased from ₹16.58 crores to ₹37.80 crores during this period. However, the earnings per share (EPS) showed a slight dip in March 2025 to ₹7.52 from ₹8.28 in March 2024, influenced by an increase in equity capital from ₹12.56 crores to ₹50.24 crores, which diluted earnings per share despite higher absolute profits.
Operating profit margins excluding other income have remained relatively stable, hovering around 23% to 26%, while PAT margins improved from 13.27% in March 2023 to 15.95% in March 2025. The company’s gross profit margin remains negative due to high interest costs, which rose from ₹56.62 crores in March 2023 to ₹107.84 crores in March 2025, reflecting significant borrowing to support growth.
Balance Sheet Strength and Capital Structure
Manba Finance’s shareholder funds have shown a commendable increase, rising from ₹166.79 crores in March 2023 to ₹368.90 crores in March 2025. This growth is supported by a substantial increase in reserves and equity capital, indicating strong capitalisation. The company has no long-term borrowings but carries a significant amount of short-term borrowings, which have escalated from ₹595.93 crores in March 2023 to ₹1,075.14 crores in March 2025, underscoring reliance on short-term debt financing.
Total liabilities have grown in tandem with assets, reaching ₹1,463.91 crores in March 2025 from ₹787.62 crores in March 2023. Non-current assets, primarily long-term loans and advances, have also expanded significantly, reflecting the company’s investment in its lending portfolio. The book value per share has improved steadily from ₹44.28 in March 2023 to ₹73.43 in March 2025, signalling enhanced net asset value for shareholders.
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Cash Flow and Liquidity
Cash flow from operating activities has been negative in recent years, with a significant outflow of ₹323 crores in March 2025, primarily due to large changes in working capital. Despite this, the company has managed positive net cash inflows overall, supported by strong financing activities that contributed ₹453 crores in the latest fiscal year. Cash and bank balances have nearly doubled from ₹108.63 crores in March 2023 to ₹239.84 crores in March 2025, indicating improved liquidity buffers.
Investing activities have seen modest outflows, reflecting ongoing investments in the business. The company’s ability to raise funds through financing has been crucial in maintaining its growth momentum and meeting operational cash requirements.
Outlook and Considerations
Manba Finance’s historical performance reveals a company in expansion mode, with strong revenue growth and improving profitability metrics. However, the rising interest burden and negative operating cash flows warrant close monitoring. The company’s increasing equity base and reserves provide a solid foundation, but the reliance on short-term borrowings could pose liquidity risks if not managed prudently.
Investors should weigh the company’s growth prospects against its financial leverage and cash flow dynamics when considering exposure to Manba Finance.
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