...Standalone Profile Driven Ratings: The ratings of Manappuram Finance Limited (MFIN) reflect its moderate franchise in gold-backed financing and other lending to India's semi-urban and rural borrowers, improving asset quality, recent capital infusion from Bain Capital and generally stable funding and liquidity. These strengths are counterbalanced by MFIN's high growth appetite and the operational risks inherent in its key gold-lending segment. Profitability has been volatile, as the lender reduced lending rates in the financial year ending March 2026 (FY26) to capture growth opportunities. However, Fitch Ratings expects profitability to recover over the next 12 to 18 months as lending rates normalise and credit costs decline further, supported by a lower share of microfinance loans in its portfolio. Supportive Operating Environment: India's strong medium-term growth potential and large, diversified economy are likely to continue supporting the business prospects and profitability of non-bank...
