Manba Finance Ltd (NSE: MANBA) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Manish K. Shah — Managing Director
Jay Mota — Executive Director & Chief Financial Officer
Analysts:
Unidentified Participant
Heli Shah — Analyst
Divyam Doshi — Analyst
Sudharsan Nachimuthu — Analyst
Devansh Shah — Analyst
Presentation:
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Sa.
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Sam. Sa.
operator
Ladies and gentlemen, good day and welcome to Manba Finance Limited Q3FY26 earnings conference call hosted by Ariana Capital Markets Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then 0 on your Touchstone 4. Please note that this conference is being recorded. I now hand the conference over to Mr. Haley Shah from Arihant Capital Markets Private Limited. Thank you and over to you Ma’.
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Am.
Heli Shah — Analyst
Hello and good afternoon to everyone. On behalf of Aryan’s Capital Markets Ltd. I thank you all for joining into Q3 and nine months. February 26th earning conference call of Madma Finance Ltd. Today from the management we have Mr. Manisha, Managing Director and Mr. Mota, Executive Director and Chief Financial Officer. So without any further delay I will hand over the call to Mr. Manisha for his opening remarks. Over to you sir.
Manish K. Shah — Managing Director
Yeah. Thank you Ellie. Good evening everyone and thank you for joining our earning call today to discuss the performance for the third quarter and nine months of the financial year 2026. I would also like to thank Ariane Capital for hosting this earning call. Let me first start by giving a brief overview of the company and operational highlights followed by with our CFO will brief you on the financial performance for the third quarter and nine months ended financial year 26. Manba Finance Limited is an NBFC offering range of financial solutions including loans to new two wheeler, three wheeler, used car, small business loan, top up loan and used to wheeler loans.
We are currently operating in 113 locations across six states precisely Maharashtra, Gujarat, Rajasthan, MP, Chhattisgarh and UP. Our distribution network includes over 1400 plus dealers. We have secured funding from three public sector, 10 private sector banks and 23 NBFCs. We have a total team size of approximately 1700 employees out of which more than 700 plus employees are a part of sales team. Our internal collection team ensures low NPS in the industry. The company commands one of the fastest turnaround time for loan sanction in the industry. With over 60% of our loans sanctioned in one minute and and 92% loan sanction within a day.
Lastly during the quarter we also entered into a strategic MOU with TV Motor company enabling deeper collaboration across their dealer ecosystem and enhancing our reach to our reach 2 in the 3 wheeler financing segment. In conclusion, the quarter under review reflects the strength, resilience of our business model with healthy growth in AUM and disbursement, stable asset quality, strong liquidity and a well capitalized balance sheet supported by robust demand trends, disciplined risk management and strategic partnership. We remain confident in our ability to deliver sustainable and profitable growth and long term value to our stakeholders. Now I request our CFO Mr.
Jai Mota to brief you on the financial performance. Over to Jay.
Jay Mota — Executive Director & Chief Financial Officer
Thank you Manish sir, let me provide a brief overview of the financial performance of the third quarter and the nine month of the financial year 2026. As of 12-31-2025, our asset under management stood at rupees16.31 crore reflecting a robust year on year growth of 25%. Our total balance sheet size to date 1771 crore. During the period we have achieved a record high disbursement of rupees 746 crore compared to rupees 672 crore in the same period last year. The strong performance was primarily driven by encouraging demand in the two wheeler segment supported by the continued expansion of our dealer network and addition to the new location during the quarter.
For the third quarter under review, our net interest income stood at rupees 42 crore reflecting a growth of 17% year on year. The profit after tax for the quarter was 13 crore demonstrating a healthy profitability. For the ninth month of the financial year 2026, the company reported net interest income of rupees 110 crore representing a 19% year on year growth. Supported by a steady loan growth and and improved funding efficiencies. We continue to deliver healthy profitability with net interest margin at 12.65% supported by gross yield of 22.80%. Profit after tax for the period stood at rupees 34 crore marking on increase of 15% year on year basis.
Reflecting our focus on the sustainable and profitable expansion, we delivered season’s Highest disbursement of rupees 347 crore in the quarter which was 48.90% increase in quarter on quarter we also added 37,500 new customer taking our total live customer base to over 2 lakh. The momentum was driven by the festive demand, expansion of the branch location and deeper penetration in the key market. We further expanded our presence across Uttar Pradesh, Madhya Pradesh strengthening our portfolio in these states. Turning to the portfolio mix, our exposure was primarily to the core Mamba business at 92.35% with co lending partnership, DEA and BC arrangement accounting for 3.89%, 3.01% and 0.75% respectively.
Talking about the product mix for the period under review, 2 Wheeler accounted for 85.91%, small business loan for 4.22%, top up loan 4%, 3 Wheeler 3.05% and used vehicle loan 1.38%. This clearly demonstrate that over 95% of our portfolio remains secured. Our asset quality continues to remain well under control as at the end of the quarter, gross NPA stood at 3.38% while net NPA were 2.57%. Credit costs remained extremely stable with the losses consistently below 1% reaffirming the strength of our collection engine and quality of our underwriting process. On the provisioning front, we continue to maintain prudent trends.
Our expected credit loss provision stood at around 21 crore compared to IRC requirement of 13 crore resulting in a healthy excess buffer. Further, our capital adequacy ratio remained healthy at 25.06% well above the regulatory requirement, providing ample headroom to the support future growth. Importantly, as per the structure ALM statement filed with the rbi, the Company reported no negative mismatch across the across any time buckets highlighting the strength of our liquidity management framework. Our credit profile remains well supported by the external rating with CARE rating assigning us BBB with a positive outlook and Acute rating assigning us A.
On the funding side, our average cost of borrowing currently stands at 10.12% which has gradually declined benefiting from the improved credit rating and favorable market conditions. On December 2025, stage one asset stood at15.22 crore accounting for 93.30% of the total portfolio reflecting a strong asset quality. Stage two asset where at rupees 54 crore I.e. 33.32 of the gross asset and remains broadly stable compared to the previous quarter. Gross stage 3 asset stood at 55 crore, I.e. 3.38 crore of the gross asset improving from 3.52% in the September 2025 while net stage 3 asset declined to 2.57% from 2.68%.
Overall, the company continues to deliver steady financial performance supported by the healthy margin, controlled credit cost and strong capital position. With this, we can now open the floor for the question and answer session.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use the handset while asking a question. Ladies and gentlemen we will wait for a moment while the question queue assembles. The first question comes from the line of Divyam Joshi from 92 Capital. Please go ahead.
Divyam Doshi
Hello, sir. Congratulations on the good set of numbers. I wanted to ask that. The borrowing cost have moved up sharply while yields are stable. Right. So how much of this pressure is structured and what is your realistic NIM outlook for the next two or three quarters?
Manish K. Shah
I didn’t get the. You said the borrowing cost has been reducing and the.
Divyam Doshi
No, no, no. The borrowing cost have moved up from the. From Y O Y basis. It has moved up. Right. And the yields are stable right now. So how much of the pressure is structured and what is the realistic nim?
Jay Mota
So borrowing cost is being reduced. It was like earlier. It was just a second 11.15. Yeah. It has been reduced from 10.80 to 10.12.
Divyam Doshi
Okay. Okay. And.
Jay Mota
25. And we are reduced to 10.12 as of September. Sorry. December 2025. So there will be. So because of the reduction in the borrowing cost, there will be growth in the NIM margin going forward.
Divyam Doshi
Okay.
Jay Mota
Yeah.
Divyam Doshi
Okay. And one. One last question. The current NPA is at 3.4%, right?
Jay Mota
3.38.
Divyam Doshi
Yes, 3.38. Right. So as we are expanding into newer states. So are you tightening your underwriting or taking higher risk to drive this disbursement?
Manish K. Shah
Yeah. So basically we have not added any state this year and neither we are planning to add any new state. But we are just penetrating the state which is just started to in last three years that is up and MP. And in the new state we always restrict our LTV to 75%. So where, you know, there is a less possibility of, you know, increasing the npa. And that’s the how we have been grown in the past also. And that is the reason that on a 100 crore AUM also our credit loss was less than 1%.
And today at a 1600 crore rupees of AUM also our credit loss is less than 1%.
Divyam Doshi
Okay. Okay. That’s it. Thank you so much, sir.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on your touchstone telephone. The next question comes from the line of Sudarshan Nachimurtu from Prosperity Wealth Management. Please go ahead.
Sudharsan Nachimuthu
Yeah, I’m audible.
Manish K. Shah
Yes, Sudarshan.
Sudharsan Nachimuthu
Yeah. So sort of some bookkeeping question in your presentation. Your nine month borrowing distribution is down from the H2H1 presentation. So is it actually come down or is it a Pvt.
Manish K. Shah
What? What you said borrowing.
Sudharsan Nachimuthu
So slide 13 your source of funds. The sum is around 1350 cr. So what is the total outstanding borrowing as of 9?
Manish K. Shah
Total outstanding borrowing as on December. You want to understand, right?
Sudharsan Nachimuthu
Yeah.
Jay Mota
So as on December outstanding was around 1350 crore.
Sudharsan Nachimuthu
So it has come down from Q2. That’s what you’re trying to say.
Jay Mota
No. No. So what happened? Okay. During the September we were at healthy liquidity of around 400 crore for our seasonal business in the month of October. So during that period, so going forward from October and November we have not borrowed any fresh funds. So that’s why the borrowing has came down.
Sudharsan Nachimuthu
Okay. Then filings interest cost has gone up around 8 odd crores.
Manish K. Shah
Interest cost, finance cost as from finance cost.
Sudharsan Nachimuthu
Q2 finance cost was 34 cr. Q3 at 42. If borrowings has come down and is stable, your finance cost has gone up.
Jay Mota
So major borrowing which we have borrowed in the month of September. Okay. We have borrowed around 300 plus crore.
Manish K. Shah
In the month of September only.
Jay Mota
So that’s why the borrowing cost in the month of October was slightly higher. Crore deduction in the borrowing.
Manish K. Shah
And there is also if you see the finance charges then whatever business, major business which we have done in the month of October and November which first EMI presented only in the month of December. So the interest income of those cases will start majorly from this quarter. This quarter will get the entire quarter earning for those seasonal business.
Sudharsan Nachimuthu
I think you missed the question. When quarter on quarter your borrowings has come down, how come the finance cost has gone up? So that is the question.
Manish K. Shah
No, quarter on quarter it has not come down. Only September quarter to December quarter it has come down because September we have borrowed 410 crore rupees in one month. Okay. And only those out of that 300 crore plus amount has been borrowed in the last week of September. So that entire finance cost which has been not, you know, put in the that September quarter it has come down to December quarter. And because the season has gone so we have not borrowed any new fund in the month of October and November. So that’s why although the finance borrowing is reducing but the finance cost is increase in this quarter.
Jay Mota
So borrowing also reduced by just 100 crore. And we have whatever we have borrowed means like in Q2 we have borrowed somewhere around 500 crore extra. So that interest income or for the 500 crore was come came up entirely for in this quarter. 3 that’s why the finance cost has been increased.
Sudharsan Nachimuthu
Understood. So you borrowed the major chunk in the lower end of the quarter.
Jay Mota
So because because see the season was in the month of October because of Dashera and Diwali. So we have to be ready with the funds. So we were at healthy liquidity of 400 crore by borrowing the funds in the month of September. And there is a deduction of hardly just 100 crore in the this three months. That’s it.
Sudharsan Nachimuthu
Okay. Understood. Understood. Thank you for that. And so is there any particular reason we are concentrating more on NCDS than on term loans. And if you can give us a breakup of what is the term loan borrowing cost and NCD borrowing cost.
Jay Mota
So NCD borrowing cost is. You have rightly state NCD cost is slightly lower. Right now we are borrowing at 10.65%. So and term loan what we are borrowing it is at 11%. So NCD remains the same. And also we want K. So some of the detail exposure and person means like retail investor should also invest in this bond so they can get good income from outside.
Manish K. Shah
And the visibility of the MANBA will increase because of the NCD. Because you know if there there are only 43 lenders in Manba they only know the how MANBA is doing and how they are good in repayment, how they are good in all the performance and governance. So we want to give a more and more exposure to the company to the retail investors. So in future whenever there is we go for a second round or any capital, you know raise that time also this activity, this platform will definitely help us. Because by giving a 10,000 rupees of denomination for NCD you are reaching out to thousands of people.
Sudharsan Nachimuthu
Understood. And within the term how much would be your securitization portion and how much would be actual term loans.
Jay Mota
So securitization portfolio is around 150 crore as of December. But we are following the NDS. So it is a part of balance sheet item only.
Manish K. Shah
Yeah.
Sudharsan Nachimuthu
Understood. You are not degree recognizing from the balance sheet that I wanted. And so this latest record, is there any pass through mechanism from bank like you mentioned term is at 11% cost. So is it repo linked or NCLR linked.
Manish K. Shah
So it’s a mixture, you know some are fixed, some are linked. Okay. And as a policy of the company we keep on doing the PTC transaction around 25 to 30% of the over total bond borrowing. So what happens that you know that is a fixed cost whatever. You know we have sailed and then there is no. No interest impact is going to come on that. So now the we have going to charter some DA transactions also. So that’s why we are you Know making in this way that around 40 to 45% of the our total borrowing should be unaffected with the changes in the interest cost.
Jay Mota
So NCD which we are borrowing it is at fixed cost only.
Sudharsan Nachimuthu
I was asking about the term.
Jay Mota
456 crore is at fixed cost. Then PTC is also at fixed cost only. Apart from this some of term loan are also at fixed cost.
Sudharsan Nachimuthu
Okay. Okay. Understood. So I think I’ve exhausted my questions. I’ll come back in the queue for further questions. Thank you.
operator
Thank you. A reminder to all participants. Anyone who says to ask a question may press star and one Natash don’t telephone. The next question comes from the line of Rohita s from an individual investor. Please go ahead.
Unidentified Participant
Hello sir.
Manish K. Shah
Yes.
Unidentified Participant
Hello. Am I audible? Yes.
Manish K. Shah
Yes. Please go ahead.
Unidentified Participant
What is our incremental cost of borrowing in Q3 of FY26?
Manish K. Shah
Incremental cost of borrowing is. As we discussed that we are borrowing NCD at 10.65 and the term loan is around 11%. Our average cost of borrowing is 10.12.
Unidentified Participant
And is is it further expected to decrease?
Manish K. Shah
Yeah. So every quarter on quarter we are reducing. So from last quarter to this quarter it has got red. And now we are discussing we are expecting a big amount of sanction from one of the PSU at a very less rate of interest. So definitely quarter on quarter. This is on a decreasing rate scenario.
Unidentified Participant
And sir any further guidance for FY27.
Manish K. Shah
So this will remain constantly growing company. Every you know quarter on quarter we are growing from the day of listed all the five quarters we have sown our robust growth. And this will keep on continue.
Unidentified Participant
Sir any number in mind.
Manish K. Shah
So it we as in my previous calls also we have discussed and I have told that we will end this 20 FY26 by 1700 crore to 1750 max.
Unidentified Participant
Answer for FY27.
Manish K. Shah
I will not be able to give you exact number. But yes the company is always been focusing on a growth of 25 to 30% year on year.
Unidentified Participant
And sir, we are looking to any more loan products. Or are we comfortable with five products currently.
Manish K. Shah
So now we are just adding one product. In last call also we have discussed that we are making a funding policy. Now it is completely ready. We are ready with the team. Also on 10th of February we are launching lab. You know it’s a MSME lab. So that loan amount maximum loan amount will be 20 lakhs. Minimum will be 5 lakh rupees. So this is the product which we are in. It is in the pipeline to start from February rest. We will focus only on our this 5 products only.
Unidentified Participant
And sir, are we launching lap in all the states or are we going.
Manish K. Shah
To start from selectively? Selectively. The way we have started small business loan. We started with Mumbai first. Then Pune, Nasik, Ahmedabad. Now it’s same way we are starting this lab with Mumbai and Pune. Starting with. Then we’ll see the six months. How it is working. What kind of gaps are there. We will find it. Find out the entire process. We stabilize our manpower and the team. And then we’ll start with the Nasi canal.
Unidentified Participant
And sir, are we going. Are we going to expand into more states or want to go deeper in existing states?
Manish K. Shah
No. So we will not expand state but we’ll go deeper in the state. Especially in UP and mp.
Unidentified Participant
Okay, sir. Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and 1. The next question comes from the line of Saksha. An individual. Please go ahead.
Unidentified Participant
Yes. Good evening, Manisha. So I think you had earlier guided of 100 crore rupees profit in next financial year. Financial year 27. Am I right? Does it still hold true?
Manish K. Shah
No, we have not told 100 crore. It was a 28. 2728. So next year we are targeting anything but out 65 crore to 70 crore. And after that it will be.
Unidentified Participant
Okay. Okay. That. That’s nice. So that would be approximately. Approximately ROA for next year would be around. Can you guide that?
Manish K. Shah
3.25 to 3.5.
Unidentified Participant
Okay. And so that would be Roe of around 15%. Is that right?
Manish K. Shah
Yes. 14 to 15%. Right.
Unidentified Participant
Right. Right. Okay. Yeah. That’s it. From my side. Yeah. Thank you.
operator
Thank you. The next question comes from the line of Sudarshan Nachimudu from Prosperity wealth management. Please go ahead.
Sudharsan Nachimuthu
Yeah. Hi. Thank you for the opportunity again. You mentioned you’ll be starting direct assignment transaction shortly. So is there any internal target? How much would be the quarterly run rate you’ll be targeting? And what would be the spread you will be keeping? And what will be the portion you’ll be assigned?
Manish K. Shah
So this is. Everything is under discussion. Okay. So we are. We will do one transaction in the this quarter.
Sudharsan Nachimuthu
Okay. Okay. And would you like to comment on the spread you’ll like to keep?
Manish K. Shah
Spread? You are asking about the.
Sudharsan Nachimuthu
So you’ll be attending at a certain ROA. Right. Like we. We charge 22% for the client and we’ll assign it at a. Let’s say 10, 11% yield to the right now.
Manish K. Shah
Yeah. So see our pool is good. So we are expecting around to get it around 10. 10%.
Sudharsan Nachimuthu
Okay. And you’ll deregnize the asset right from the balance sheet.
Manish K. Shah
Yeah.
Sudharsan Nachimuthu
Okay. And on the secured lab products you mentioned it’ll be starting it. So what kind of yield expectations are you targeting internally for this project?
Manish K. Shah
2019-20.
Sudharsan Nachimuthu
Okay. And which state I are you trying to start?
Manish K. Shah
And we are starting Mumbai and Pune first.
Sudharsan Nachimuthu
Okay. Okay. Okay. So that’s a command.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question you may press star and 1. The next question comes from the line of Sampath Raj, an individual investor. Please go ahead.
Manish K. Shah
Hello sir. Good evening. Yeah, good evening. I just.
Unidentified Participant
Yes.
Unidentified Participant
I just wanted to understand how is the mix between new and used vehicle loans evolving.
Unidentified Participant
And do you expect any shift in.
Manish K. Shah
This competition composition going forward? No. So we are gradually focusing for used to wheeler because now it is becoming a little organized market. So used two wheeler we are focusing and month on month our disbursement are also increasing. It will you know help us in our improving our average yield on the also. But the script will not be very, very, you know visible it because it will today it is 97% is new, 98% is new and 2% is used tubular. But it can go up to 10% because it cannot go beyond that. And in used two wheeler there is a less competition also.
So we are gradually will may start focusing on that.
operator
Thank you. The next question comes from the line of Sudarshan from Prosperity Wealth Management. Please go ahead.
Sudharsan Nachimuthu
Yeah. On the used two wheeler frame is it like targeting separate dealers over and above the OE dealers you have or is it the same kind of dealer pools?
Manish K. Shah
No, no. It’s a completely separate set of dealers who are completely do active in the used two wheeler business only.
Sudharsan Nachimuthu
Okay. And how is the existing competition in this used two wheeler? Is it morely local players or do you. Do you see any organized guys in it?
Manish K. Shah
No, no. There is a IDFC is also very active in the used to wear. Okay. Over and above IDFC there are very few player. Now some people have started will CMI also also one of the good player. But recently they are not doing at all the locations but. And so these are the only two, three players.
Sudharsan Nachimuthu
Okay. And given the current DC reduction and used two wheeler being lower end of the value. So what would be the ticket size and the LTV you will be targeting?
Manish K. Shah
Yeah. So ticket size will be around 55,000 and LTV we take the OBV as the base and from the OBV it will be around 75 to 80%.
Sudharsan Nachimuthu
And how about used four wheelers? Passenger four wheelers, are we targeting that too?
Manish K. Shah
Yeah, used four wheeler we have started but because of the competition and you know we are because of our cost of borrowing is at 11 and the ask at used four wheeler is around 16 IRR and we are lending around 1718. So the kind of growth which we are expecting that is not happening. So we are planning to have a co lending partner for the used car which we are discussing with the two lenders. And hopefully by this quarter we should get a one tie up with at least with the one tie up and after that we will be able to push the used car financing in a big way.
Sudharsan Nachimuthu
And on the OPEX part currently I think we are around 5.6% against AEM. So given these new products you guys are launching and since they are being in your home state, are we to assume that your costing OPEX to AEM ratio would be stable going forward or is it, is there any room for higher escalation in this part?
Manish K. Shah
No, it will remain stable because you know the AEM spread will increase. No. So that’s why.
Sudharsan Nachimuthu
Okay. Okay. And I think we had a conversation earlier like there will be some sort of equity fundraising on crotch. So is there any time frame you guys are finally that you want to rise in?
Manish K. Shah
So yeah, we are thinking of you know in the second quarter of the next year or maybe third quarter. It all depends upon the market scenario. We all know market is not doing well. So you know it can be shift here 1/4 here and there. But definitely yes, next year we will raise the capital.
Sudharsan Nachimuthu
Okay. And when in terms of opex, your current agent per employee is around 9.6 million. So what would be the steady state trajectory when you want to model it? Please come again per employee as per your.
Manish K. Shah
Yeah, yeah, yeah. So you know that that will keep increasing and then again you know once when we are starting a new location like up next year we are adding almost 18 to 20 new locations and we are adding almost 100 plus employee over up. So again it will deep for a momentary but eventually this will keep on growing.
Sudharsan Nachimuthu
Okay. Okay. And.
operator
Sorry to interrupt.
Sudharsan Nachimuthu
Yeah, I’ll get back in the interest.
operator
Yes, thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and 1. The next question comes from the line of Gina, an individual investor. Please go ahead.
Unidentified Participant
Hello. Yeah, so actually I just wanted like I just had two questions. First that with the PCR at 24% well below the 40 60% industry average. So how do you see that? Like do you need to strengthen the provisions in the coming quarters? So what is your take on it?
Manish K. Shah
Yeah, so basically we have been kept 24 because our credit loss historically is less than 1%. But still as already Jay mentioned that as per the RBA guidelines, we are much ahead of what we are supposed to. But as you rightly said, that industry is generally doing for 40%. We are gradually increasing. It was 10. That made it 13, 16, 20 and 24 in this quarter. You know, we are expecting that this quarter the profitability will support much and you know, we are also going to do one DA transaction also. So then we’ll strengthen our balance sheet by making it from 24 to 25 or maybe 26.
Unidentified Participant
Got it. Very helpful, sir, thank you. Also secondly, several peers are aggressively expanding into the commercial vehicle financing space. So how do you see this trend and what is like your stance in this segment?
Manish K. Shah
Yeah, so commercial vehicle is a completely, it’s a very different, you know, product. You have a different set of resource partner, different set of collection also. So because predominantly since many years we are into two wheeler and gradually we are shifting to three wheeler. We are adding three wheeler used car also. So in recent time we don’t think that we will add this in our product portfolio.
Unidentified Participant
Got it sir. Thank you so much. That was all from my side.
operator
Thank you. The next question comes from the line of Devanshah it turn capital. Please go ahead.
Devansh Shah
Yeah. Hi sir, thank you so much for the opportunity. So in my opinion your capital adequacy ratio is really healthy. So what is the plan to deploy capital and maximize the risk returns without compromising the asset quality for the future. So capital adequacy is today, as you rightly said, it is healthy but as a policy, no, we don’t want to leverage more than four times. We already reached 3.37, so 4.4.25, that is what max we would like to go. Although we can go up to five and a half, five, six times also. But as a policy just to, you know, in any kind of scenario, company should be protected with all kind of, you know, natural calamity or anything.
So we will try to remain at four times and by the time it will reach, we will reach 4. 4.25 will definitely bring new capital. Right sir. So that’s a good strategy. So I just wanted to understand another thing. So you’re doing a lot of business.
Devansh Shah
Correspondent partnerships as I understand it.
Manish K. Shah
So have you started making any meaningful contribution to the profitability from these particularly? Yeah, so this has been just started in this year only. We have added eight partners month on month. Now disbursement has reached to four crore rupees. And we are you know lending this, giving this at around 16 IRR. So we are making a decent, you know gap of 4, 4 and a half percent to maximum 5%. There is no opex, hardly opex. And absolutely there is no credit loss. Right sir. Got it. That’s it from my side. Thank you so much for the clarity.
operator
Thank you. The next question comes from the line of Tushar, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Thanks for the opportunity. I have just questions. First one is on the front of the disembly science. I know you TBS motors. So basically sir, what implemented dispersion procedure do you see over the next.
operator
Sorry to interrupt Mr. Tushar.
operator
We are not audible to hear properly.
operator
You’re not audible. We can’t hear you properly.
Unidentified Participant
Hello. Am I audible now? Sir? Yes sir. The first one is on the front of Mou which we have signed with TV’s motor. So just wanted to ask what incremental disbursement potential do you see let’s say over the next 12 to 24 months. And will this change the overall product mix meaningfully?
Manish K. Shah
Yeah. So TVS three wheeler TVS they have presently they are having almost 200 dealers across India. And the state in which we are operating, that is six states they have almost 138 dealerships. So we are targeting to add 20 dealership every month. So we have already added in the January was the being the first month. So we started recruiting people. We have added eight dealers. And we hope that in the next two quarters we will be placed at least 75 dealerships. And we are expecting per dealer 15 to 20 lakh rupees of business. And going further at around you know 12 months.
And what we are talking about 18 to 24 months. The disbursement, what we are expecting is around 250 to 300 crore rupees. So the way AUM will go to say for example 3000 crore. After increment this will for minute around 10% of the total. So product mix will slightly increase if our TVS venture goes successfully. Fine.
Unidentified Participant
You sir, thanks for.
operator
Sorry to interrupt. Tushar, you. You’re not audible.
Jay Mota
Hello.
operator
No, you’re not audible.
Unidentified Participant
Hello.
Manish K. Shah
Yes, tell me now.
Unidentified Participant
Yeah sir, I was asking. EV financing is currently the stated focus area. So what is our current share of EV loans in Aum? And how do we see asset quality compared with conventional ICE vehicles basically yeah.
Manish K. Shah
So our total EV out of the entire industry EV contribution is 78 to 8%. And our in our portfolio also the EV contribution is around similarly same 7 to 9%. As far as the performance is concerned the two wheeler EV is performing better. Especially in these four brands like TVS IQ Ather then Ola and Chetan. These four vehicles are doing phenomenal. But as far as EV three wheeler is concerned if there are some you know manufacturers who has been passenger rickshaw E so local manufacturer but they their vehicles are not to that standard. And after one year it started giving issues.
So we also find some issues in collections also in the EV three wheeler passenger vehicles. So it is. I will say it is a mixed scenario so far.
Unidentified Participant
Okay sir. Okay. Thank you. That’s from my side.
operator
Thank you. The next question comes from the line of Abhishek, an individual investor. Please go ahead.
Unidentified Participant
Sir. My. I have two questions.
Unidentified Participant
While the net interest income and total income have grown the profit for the quarter has not increased proportionately.
Unidentified Participant
So. So can you just explain the divergence for this factor?
Jay Mota
So as we said earlier also the business which we have done in the month of October the main income will start coming from the month of December. So this quarter onwards you will see the increase in the net profit margin also. Okay.
Manish K. Shah
Because the major disbursement of 347 crore out of 740 crore has happened in this quarter only. And the income of this disbursement will start majorly from January. So January definitely will have a good interest income.
Unidentified Participant
I had another question.
Unidentified Participant
So how does the management plan to diversify its geography pres. Presents beyond the six state that are existing. Given that in previous quarter we had.
Unidentified Participant
Discussed we’ll be planning expansion in next financial year.
Manish K. Shah
Yeah. So we are presently we are focusing to go deeper in the state where we are present. Especially after getting a very good response in the up. We are been you know now very much focusing on on UP and as well as the same good response we are getting from MP also. So in spite of you know opening a new state we’ll further go deeper in the state where we are existingly operating.
Unidentified Participant
Okay. Okay sir. Thank you.
operator
Thank you. As there are no further questions from the participants I now hand the conference over to the management for closing comments. Thank you. And over to you sir.
Manish K. Shah
Thank you all for participating in this earning call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company please reach out to our IR manager, Velorum Advisors. Thank you very much. Thank you very much to Ariane Capital and Velorum for organizing this earning call and hope we have been able to justify the query and the question raised by the participants. Thank you. Thank you very much.
operator
Thank you. On behalf of Aryan Capital Markets Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.