Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Manba Finance Ltd (NSE: MANBA) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Purvangi Jain — Investor Relations
Manish K. Shah — Managing Director
Jay Mota — Executive Director & Chief Financial Officer
Analysts:
Unidentified Participant
Devansh Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY 2026 conference call of Manba Finance Limited hosted by Valorum Advisors. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing STAR and then zero on your touch tone telephones. Please note that this conference is being recorded. I now hand the conference over to Ms.
Purvangi Jain from Valorum Advisors. Thank you. And over to you ma’. Am.
Purvangi Jain — Investor Relations
Thank you. Good afternoon everyone and a very warm welcome to you all. My name is Bharvangi Jain from Balladrum Advisors. We represent the investor relations of Manba Finance limited On behalf of the company and Validum Advisors, I would like to thank you all for participating in the company’s earnings conference call for the fourth quarter and full year ended of the financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature.
Such forward looking statements are subject to risk and uncertainty which could cause actual results to differ from those anticipated. Such statements are based on management’s belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review.
Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Manish Shah, Managing Director and Mr. Jay Mota, Executive Director and Chief Financial Officer. Without any delay, I request Mr. Manish Shah to start with his opening remarks. Thank you. And over to you sir.
Manish K. Shah — Managing Director
Good afternoon everyone and thank you for joining our earning call today to discuss the performance for the fourth quarter ended financial year 2026. I would also like to thank Velorum Advisors for hosting this earning call. Let me first start by giving a brief overview of the company and operational highlights followed by which our CFO will brief you on the financial performance for the fourth quarter and financial year 2026. Malba 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 two wheeler loans.
We are currently operating in 130 locations across six states precisely Maharashtra, Gujarat, Rajasthan, MP, Chhattisgarh and UP. Our distribution network includes over 1,500 plus dealers. We have secured funding from three public sector, 10 private sector and small finance bank and 25 NBFCs. We have total team size of approximately 1800 employees out of which more than 900 plus employees are part of sales team. Our internal collection team ensures low NPA 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, 92% sanctioned within a day.
During the quarter we further strengthened our used tubular ecosystem through the onboarding of additional dealers. We also entered into a strategic MOU with TVA Motor company enabling deeper collaboration across the dealer ecosystem and enhancing our reach in three wheeler financing segment. Further, during the year, company declared an interim dividend of 7.5% per equity share on a face value of Rupees 10 and has also recommended final dividend of 2.5% per equity share subject to shareholders approval reflecting our continued commitment towards shareholder value creation.
Looking forward, we remain confident in our ability to deliver sustainable and profitable growth and long term value to our stakeholders. Now I request our executive director and CFO Mr. Jay Mota to brief you on financial performance for the period under review. Over to Jay.
Jay Mota — Executive Director & Chief Financial Officer
Thank you Manish Sir. Let me provide a brief overview of the financial performance for the fourth quarter and the full year. Full financial year 2026 for the fourth quarter under review, net interest income stood at rupees 50 crore registering a significant growth of 34% year on year. Profit after tax for the quarter increased by 39% year on year to Rupees 11 crore, reflecting a healthy profitability and continued operational momentum. For the financial year 2026, net interest income stood at rupees 162 crore reflecting a healthy growth of 24% year on year supported by a steady growth and improving funding efficiency.
Profitability remains strong during the year with net interest margin at 13.63% supported by a gross yield of 22.85% profit after tax. For the financial year 2026 to date, rupees 45 crore registering a growth of 20% year on year reflecting our continued focus on on the sustainable and profitable expansion. As of 31st March 2026, our asset under management stood at 1,713 crore reflecting a robust year on year growth of 29%. Our balance sheet size stood at 1,979 crore during the period we have achieved a disbursement of rupees 977 crore compared to rupees 842 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. During the quarter we have also added around 28,500 new customers taking our total live customer base over over 2.20 lakh. We further expanded our presence across Uttar Pradesh, Madhya Pradesh and Rajasthan strengthening our portfolio in these states. Turning to the portfolio mix, the split between our MFL business co lending partnership and co lending partnership DA and BC arrangement stood at 91.84%, 2.62%, 4.43% and 1.11% respectively.
Talking about the product mix for the period under review, the two wheeler accounted for 84.5%, small business loan for 4.93%, top up loan 4.70%, three wheeler 3.28% and used vehicle loan 1.50%. This clearly demonstrates that over 95% of our portfolio remains secure. On the liability side, we continue to enhance our funding profile with total fundraise of rupees 420 crore during the quarter. This includes sanction of rupees 100 crore term loan from the SBI, successful issuance of 50 crore from the NCD and onboarding loan a new lending partner such as Proteom Finance Godrej Finance Godrej Housing Finance Also for the full year it is FY26.
Total fund raise stood at rupees 1,265 crore of which the TLO accounted approximately 651 crore while NCD issuance was 365 crore. These developments further diversify our borrowing mix and reinforce the lender’s confidence in in our operating model and growth trajectory. As of 31st March 2026 the stage 1 asset stood at 1,601 crore accounting for 93.49% of the total portfolio and reflecting a strong asset quality. Stage 2 assets were rupees 54 crore of 3.18% of the gross asset and remained lower compared to the previous quarter.
Gross stage 3 assets stood at 57 crore, that is 3.33% of the gross asset improving from 3.38% in December 2025 while the net stage 3 asset is declined to 2.46% from 2.57%. Our asset quality continues to remain well under control as at the end of the quarter, gross NPA stood at 3.33% and net NPA was 2.46%. Credit cost remained extremely stable with the losses consistently around 1% reaffirming the strength of our collection engine and the quality of our underwriting process. On the provisioning front, we continue to maintain prudent trends.
Our expected credit loss Provision stood at rupees 23 crore compared to IRA requirement of 14 crore resulting in a healthy excess buffer. Further, our capital adequacy ratio remained healthy at 24.46% well above the regulatory requirement providing ample headroom to the support of future growth. Our credit profile remains well supported by the external rating with CARE rating assigning us BBB positive outlo and Acute rating assigning us A minus. On the funding side, our average cost of borrowing is currently setting 10.64% an improvement from 10.80% last year which has declined and the benefiting from the improved credit and favorable market conditions.
Our return ratio also continued to improve with ROI roe increase from 10.25% in FY25 to 11.65 in FY26 while RoA improved from 2.58% to 2.63% reflecting stronger profitability and improved operating efficiency. Overall, we believe the company remains well positioned for the sustainable long term growth supported by the strong momentum in the AUM and disbursement growth, strong asset quality, improving profitability metrics, a healthy capital position and continued strengthening of our liability franchisees.
Going forward we remain focused on the disciplined growth, deeper market trade penetration, prudent risk management and delivering consistent value of our all stakeholders. With this we can now open the floor for the question and answer session.
Questions and Answers:
Operator
Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter STAR followed by one on their touchstone telephone. If you wish to remove yourself from the question queue you may enter STAR and two participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Bulshan Singh from Sunidi Securities.
Please go ahead.
Unidentified Participant
Yeah good afternoon sir. I’m audible.
Manish K. Shah
Yeah
Unidentified Participant
Yeah thank you sir. So sir I have a two question. The first question is on a loan book site. So as you mentioned like we have a mainly 84% of our loan from the two wheeler side. So my question is regarding in future what kind of a split we are looking like the we will heavily skew toward this two wheeler or we will reduce this dependency. And same similar on also. I’m just wanted to know about the your geographical expansion. Like what kind of a new geography we are looking to expand sir.
Manish K. Shah
Yeah. So an answer to your first question is that okay gradually our dependency on one product of two wheeler is reducing. You know before three years it was almost 97% two wheeler. From there it has come down to almost 84%. And going forward the way we are being becoming more you know aggressive in the three wheeler as well as used car small business known. And also we have started the MSME lab also. So looking at all this thing as per our business plan, you know we are expecting that after three years, you know ratio will be around 65% and 35% will be other products.
And answering to your second question about the geographical. Yes. So before only Maharashtra was a major contributing the business. Today onboarding customers it has from almost 58% of contribution from Maharashtra it has come down to almost 40% now Gujarat is also contributing around 27%. Rajasthan is contributing around 15%. And now in this current year we are going to focus more on UP and MP for you know diversified growth as well as geographical growth. We are also maybe in second quarter we will start our operation in the Karnataka also.
So this will further add, you know our geographical diversification.
Unidentified Participant
Yeah. Thank you sir. And sir my next question is. Next question is regarding this AI. So right now we are seeing lot of a big banks and NBFC they are using AI to improve their efficiency and in the loan distribution system. So also reducing their. We can say the cost and all the things. So how we are seeing these things and also we are like going to implement this thing in our process also. Sir.
Manish K. Shah
Yeah. So we have hired a team for the same and initially we have started taking this benefit for the collection purpose. You know the customers who have. Who have been continuously by trend, by trend it is showing that they are paying within a week’s time after the bouncing. So we are not distributing those data to callers. And you know that second hit we are doing the same way which are the days good for two wheeler which are the seasonal impact going on. So lot of you know data learning is going on so far and which will definitely help us.
We are also coming up with the dynamic pricing only because of the AI support. So that where you know with the back end working and where we are coming to know that the loss in this particular loan transaction will be lesser than the normal loan transaction. There we are giving you know some Benefit to customers and sometimes some benefits to dealer for sourcing such kind of customers. So these are the few initiatives we have taken on the AI front.
Unidentified Participant
Thank you sir. And all the best for the future.
Manish K. Shah
Yeah, thanks.
Operator
Thank you. Participants with Questions may enter STAR followed by 1. The next question is from the line of Danish Shah, an individual investor. Please go ahead.
Devansh Shah
Sir, I’m sorry
Operator
Your voice is not very audible. Could you use your handset?
Devansh Shah
Now I’m audible?
Operator
Yes. Please proceed. Thank you.
Devansh Shah
Yes. So first of all congratulations for a very healthy set of numbers. My first question is regarding the AUM sir. So the company has shown a 20% AUM growth. So wanted to understand what will be a sustainable growth rate for AUM going forward.
Manish K. Shah
Yeah. So you know as a philosophy and as a strategy company is focusing on 25 to 30% growth every year. And same as per our business plan also it shows that same kind of growth will be able to achieve this year also. And for that you can say that we will end up around 2300 to 2400.
Devansh Shah
Okay sir, noted.
Manish K. Shah
So
Devansh Shah
My next question is are you planning for any strategic significance and business potential arising from you know, big OEMs like TVS going forward or any other brand? Any big brands?
Manish K. Shah
Not exactly for two wheeler because two wheeler, all the four very very active and popular brands such as Honda Hero, TVS and Suzuki, we are well connected, we are well penetrated across the location where we are. But as far as three wheeler is concerned we have a all India tie up with the TVs motor company which is going to help us for the further penetration in three wheeler and rest all. You know these are the four two wheeler brands which are predominantly doing good from years and they keep on bringing more and more new variants also new vehicles also.
So the that our penetration will be in line of their new initiatives on.
Devansh Shah
Okay sir, so one last question. So I just noticed while is the provision coverage ratio has been increased for the company like from 24 to 26.
Manish K. Shah
Yeah. So this is just to strengthen the balance sheet. Of course our credit loss is around 1 to 1.25% only across the years at the AUM of 100 crore also and at the AUM 1700 crore also. But still, you know to overcome any kind of natural calamity or anything in the future we year by year we are strengthening our PCR and whenever because this year also we had a good profitability. So we thought this is the right time, you know to provide more for the such kind of stage three assets and strengthen our balance sheet.
Devansh Shah
Got it sir, thank you so much and all the best.
Operator
Thank you. Participants with questions may enter star and one on your handset. The next question is from the line of Devansh Jain from Eternal Capital. Please go ahead.
Unidentified Participant
Yeah, thank you so much for the opportunity, sir. So my first question was more on the financial side. So the GNP and NPS as I see it have remained, remained largely stable and despite a lot of aggressive geographic expansion into states like I think UP and mp. So are you seeing any warning indicators or are how is basically how. What I would like to know is how is the management tracking these relatively newer markets?
Manish K. Shah
Yeah, you are absolutely. It’s a very good question. I would like to say that all the new geography we learned at a little lesser IRR to get a very good profile customers because you know, in the new geography it takes some time to create your collection bandwidth. You know, sales you can start on a day one, but the collection, it takes some time. So what we do, instead of 21 22% lending, we generally lend at 18 to 19% to new geography where we will try to take good customers only. And that’s the reason, you know, our GNP and NNP are quite stable in spite of adding new geography.
Unidentified Participant
Got it, sir. And I just wanted to understand sir, now that the demographics have changed in West Bengal, the political stability is also going to come into play. So is there any plans to enter those markets? Because that is one market where these micro finances very much required.
Manish K. Shah
Yeah, yeah. So we are you know, studying especially our chief business officer and executive director Monil Shah is constantly in the, you know, study and research on the new geography expansion. So first we will start with Karnataka and later on because as you rightly said, Kolkata is a one of the biggest market for two wheeler, especially for used two wheeler also. So we are definitely, we are looking at it but not immediately second quarter we are definitely starting Karnataka but maybe by end of this year or maybe in the next year we start looking at West Banker.
Unidentified Participant
Okay, thank you for the positive comment and one last question if I can. So the dealer count has increased sharply from around 1200 to I think 16, 1650. So how much is the incremental disbursement growth coming from productivity and improvement versus the network expansion that is happening?
Manish K. Shah
Yeah, so dealer addition is mainly because we, you know, had added used to wheeler and so there are most of the, I will say around 200 plus dealers have been onboarded in the last quarter only. Last two quarter only, I will say. So productivity is remained almost similar but with this new counter where you know placement is going on and we are able to put our manpower also. So disbursement is also grown by almost 16% from the last year. But all this dealer expansion will have definitely have a major impact in this coming year.
Unidentified Participant
Okay, perfect. That. Thank you so much, sir. And that’s it. From my side.
Operator
Thank you. The next question is from the line of Sampath, an individual investor. Please go ahead.
Devansh Shah
Sir. In the last earnings call the management highlighted the MSME lab as the upcoming new launch product. So could you please share the current progress of the same?
Manish K. Shah
Yeah. So this product is already started. We have already started the development. And initially we have been started two branches. One at Mumbai and one at Pune. So almost all the hiring of the RNS business manager bcm. Everything has been done. And disbursement at both the branches has started. And response is also. We are getting a very good response also.
Unidentified Participant
Okay. Okay.
Operator
So do you have any more questions?
Unidentified Participant
No. No. Okay.
Operator
Thank you. Thank you. Participants with questions may please enter Star and 1. The next question is from the line of Rohit Arora in investor. Please go ahead.
Unidentified Participant
Am I audible?
Manish K. Shah
Yes, sir.
Operator
Please go ahead.
Unidentified Participant
Sir, what is our incremental cost of borrowing in Q4FY26 in current Q1FY27?
Manish K. Shah
Yeah. So Jai, take this. Incremental cost of borrowing.
Jay Mota
Hello. Yeah. Can you repeat the question?
Unidentified Participant
The incremental cost of borrowing in Q4FY26 and Q1FY27. Currently.
Jay Mota
So currently we are raising the funds at 10.50%.
Unidentified Participant
Has it increased from Q3 for upper 26?
Jay Mota
Huh?
Unidentified Participant
Has. Has it been increased from Q3 upper 26?
Jay Mota
No, no, no, no. It’s a decreased
Unidentified Participant
From. Hello. Hello.
Manish K. Shah
I will just clarify that we are borrowing presently at 10.5%. And it has been almost reduced from our previous borrowing which was around 11.25. So in last entire year we will be able to reduce our borrowing cost by 1.10%. And because majorly we have done a PTC transaction is almost 9.75%. We got a SBI approval disbursement of 100 crore rupees at only 10% of. So my average cost of borrowing will further go down. And we are not borrowing anything more than 10.5.
Unidentified Participant
Okay, sir. And sir, are we seeing any further reduction in cost of borrowing?
Manish K. Shah
Yeah. Yeah. So of course on every milestone or any result, you know we are pushing all our lenders, making them understand, showing our performance and trying for 20 paisa. 25 paisa. 50 paisa to reduce down in this quarter also. But of course the external. Because of the external situation it looks little difficult. But of course, yes we will not be. Will not at least borrow at a higher price. That is for sure.
Unidentified Participant
Okay sir. And sir, what are the yields on the MSME Lab business which we have recently started?
Manish K. Shah
Yeah, so yield is. We are. You know the gross Yield is around 80 to 19%. Because it is a secured assets.
Unidentified Participant
Yes, answer. LTV.
Manish K. Shah
LTV it is. You know there are two, three schemes and all depend upon the person capacity of. You know we are not only depending on the value of the assets we also see the paying capacity of the customers. So relatively on the valuation part we go up to 60%.
Unidentified Participant
60% average ticket Sizer.
Manish K. Shah
Every ticket size starts from 5 lakh to 20 lakhs.
Unidentified Participant
Okay sir. And are we looking to add more geographies?
Manish K. Shah
Yeah, definitely. But not immediately. This quarter we will have only these two branches. Then in the next quarter we are starting. We are going to start at Nasik and Ahmedabad
Unidentified Participant
And further extension. Could you
Operator
Return to the question queue Mr. Arora? The next question is from the line of Prashant Kumar from Sunidi securities and Finance. Please go ahead.
Manish K. Shah
Yeah. Yes.
Unidentified Participant
So my question is on asset quality trend in current macro challenging environment. Especially the rise in fuel price and the company’s higher concentration in vehicle financing. So are you seeing any early sign of a stress borrower behavior such as collection efficiency trend or overdue buckets or bonds in a specific customer segment or geography?
Manish K. Shah
Yeah, so so far not much because you know we are basically into 100-125cc only where you know these are the customers who buys this, who takes this loan for their basic necessity for the main basic committee from residence to office or from residents to school to drop their child. So they are cautious repaying and especially the amount of EMI is pretty low. It is around 3,500 to 4,000. Thirdly we take a handsome down payment at the time of disbursement that is around 2520 to 25%. So customer equity is already there.
So they will not be, you know be happy to that we their surrender their vehicle or we may seize their vehicle. So so far the scenario has not disturbed this product. But yes in the on a small business loan we are becoming more cautious and you know our rejection ratio we also we have been increased and. So growth sector very enthusiastic environment is not there. So we are not very much focused on the small business loan because that is the only unsecured product companies having. And the of course the outer limit of the AUM is only 5%.
So so far nothing much has been, you know, visible for the, you know, war situation which is going on. But of course, yes, we have tightened our credit policy for new customers onboarding to take the precautionary measure.
Unidentified Participant
Thank you sir for such a elaborate answer. And if, if, if I go some deeper like could you provide some more color on customer profiling like including income, income statement or occupation mix or they are the first time borrower or repeat.
Manish K. Shah
Yeah. So as far as customer you know concerned our 50% of the customers are salaried and 50% is self employed. We focus more on owned house customers who are having their own house. So our 92% of our customers are having owned house. That has always helped us in better collection. As far as the income part is concerned we, you know this is a very small loan product. So we just take their income for all we are not taking, we are taking this for all measures for small business loan. And as far as new to customers are concerned we always restrict 35 to 40% of our total portfolio for the new two customers.
So these are. And in that scenario also whenever the customer is NTC we restrict our LTV to 70 to 75%.
Operator
Thank you. The next question is from the line of Saket Kapoor from Kapurko. Please go ahead.
Unidentified Participant
Hope I’m audible.
Manish K. Shah
Yes
Unidentified Participant
Sir, my question, I’m new to the organization so I’m just stating the success in terms of trying to understand the model. And firstly sir, we are only financing to the ICE model and not into to the EV space or what portion of the EV two wheeler segment can we look forward for financing as there are lots of variations and there are a lot of many price variants also there.
Manish K. Shah
Yeah
Unidentified Participant
So
Manish K. Shah
We are into financing of both the variant eyes as well as EV and we our portfolio is all always you know in the similarity of the industry. The today the industry contribution of EV2 Wheeler is around 7 to 8% and same is reflecting in my portfolio also as far as three wheeler is concerned we are more aggressive in the EV segment and of our three wheeler portfolio is around 50 crore. Out of that almost 40 crore is EV. So we are well, you know, diversified and we are well focused on EV products especially in two wheeler is concerned IQ we are very focused.
Baja chetat we are focused, we are focused and as far as three wheeler is concerned pigeo we are focused Graves and TV Motor company
Unidentified Participant
When we look at the risk profile, particularly EV as a space where technology is also changing rapidly and then the component part of it is also in terms of that getting redundant quickly is also much higher. So what. What are. What are the risks that are we are aligning to the same. And then the NPAs in that segment also would be slightly higher than what we. Because the. Because the retail price for I think so EV two wheelers and all is much lesser than what the ICE engine would be. That is a more mature market.
Yes. What is your.
Manish K. Shah
So as far as two wheelers are concerned our so far, you know, whatever output has come as far as collection is concerned, it is better than ice. I will tell. I will say because you know they are very informed customers. They know that you know taking this vehicle as vehicle will not get that kind of speed. But they are taking it for the economy purpose and mostly educated customers are you know, going Forward to buy EV2 Wheeler. So as far as EV2 Wheeler is concerned, my MPS is only 1% after almost 3 1/2 year of operations.
And as far as 3 Wheeler EV is concerned, where you are right, the customer profile are little, you know, dicey and if you will not have a better control on their cash flow, then there are possibility that you may land up in high NPA or maybe more credit loss. Because you know the usage of such a three wheeler EV is in India. They you know unfortunately RTOs and all are not so strict because they usually they get a permission of four people but they allow 10 to 12 people. So the usage and the depreciation of such vehicle such auto rickshaw three wheeler is getting faster than what expected.
And when they surrender such kind of vehicle or we see such kind of vehicle, there is a huge loss. So absolutely I will you know say that funding three wheeler and collection of three wheeler is always a very very, you know, challenging one should be very cautious. And we. That’s the reason we are growing on a very very so slow pace and on a very very select OEM only we are going on
Unidentified Participant
Right. So this space what should be the our book likely for the end of the current year. And how would you like to grow grow the book which will be more towards the EV space. What should be the size? It would be around the same the way the market is growing or we will have. We will take extra leverage on the EV segment as the various variants are going to be much more than what the iq. And the entry level is also less. If we take today the type of example in case of Activa and TVs Activa we find the entry level are above 1 lakh.
Whereas in the in the EV segment it ranges from 40:45,000 to in that range. So half of the prices so that gives the ticket size also goes down. And hence the market might be more lucrative for you sir. How is that? Yes,
Manish K. Shah
First of all I will correct. You know no good two wheeler is EV tubular is available less than 1 lakh 25 thousand. So those all 40 45,000 vehicle rupees a category of vehicle are unregistered vehicle. They are not from a reputed OEM brands. They are all assembled and imported from China. So this all are and we are not into that kind of segment of financing. So now coming to the original first question is that. That yes we will definitely be aggressive in EV financing. Especially we are getting a lot of comfort in IQ and ether as far as two wheeler is concerned.
And we are. You know even our lending rate for the same product is also less than our ICE engine other vehicles lending. And because of the performance our LPAs are less than 1%. So we will become more aggressive in the evening as far as three wheeler EV is concerned. Recently we’ve been able to you know strike two MOU where OEM very renowned and very old OEM employee were there in the market for many years. They promised us to take 50% of hit of the POS amount outstanding at the time of the NPA or at the time of the seating of the vehicle.
So by getting this comfort we will definitely become little aggressive in the three wheeler EV space also. So of course the first goal will be to align with the industry growth of EV and definitely we will grow in the EV financing sector more than the industry penetration.
Unidentified Participant
Thank you for your insight.
Operator
Thank you. Participants with Questions may enter STAR and 1. The next question is from the line of Mayuresh from Invest for Edu. Please go ahead.
Unidentified Participant
Hello.
Operator
Yes sir. Please proceed.
Unidentified Participant
First of all congratulations for good sales of number and thank you for the opportunity sir. So my first question is on the TS Motor partnership. Like how is the partnership partnership shaping up and how meaningful can it be for our AUM growth? Are we looking at similar OEM or dealer led partnership in the future, Sir?
Manish K. Shah
Yeah. So TVS Motor this is All India MoU which we entered and this MOU is rendered before almost three months. So in this three months we will able to onboard 70 TVS dealers who are into three wheeler distribution. And this is giving a lot of push to my 3v3 Wheeler book. Also because there is a clear communication going from TV motor company to each each one of these dealers that MANBA is very, very active and most ideal financer for three wheeler. And this has helped us. They also have been given us a good subvention at the time beginning of the transaction as well as they have, you know they have, they are going to support us in the event of any credit loss Also
Unidentified Participant
My second question is on the portfolio mix. Are we seeing any change between new vehicle and used vehicle loan? How is this impacting ticket size, yield and asset quality? And also for use vehicle loan, what is a broad framework for deciding altitude?
Manish K. Shah
Yeah, for you two wheeler, right?
Unidentified Participant
Yes sir.
Manish K. Shah
Yeah. So used to Wheeler of course the ticket size is to 60,000 whereas in the new it is around 80 to 85,000. The yield is also been, you know, different where the new two wheeler we are lending it around 21. Whereas used two wheeler we can lend it around 24 to 26 IRR. As far as the quality profile of the customers are concerned, of course NPC is more than in used to wheeler it is around 50 to 55%. And as far as behavior of the customers are concerned for both the sector new and used so far of course the used two wheeler penetration is not much because our presence is only at 150 dealership whereas our presence in the new two wheeler dealership is around more than 1200 plus.
So but yes, the first performance of the youth two wheeler is very promising and we are not doing that bigger credit loss then it will be maybe one person or maybe 1.5 to 1 to 2% max.
Operator
Thank you. The next question is from the line of Rohit Arora, an individual investor. Please go ahead.
Unidentified Participant
Hello sir.
Operator
Yes sir, Please proceed.
Unidentified Participant
Sir, what are the expected timelines of equity fundraise which we talked about in previous con call?
Manish K. Shah
Yeah, see in the previous con call also we have talked, we already discussed that it is in the targeted quarter is second or maybe third quarter. But looking into the current scenario, you know it can go into the third or maybe the fourth quarter. So. But yes, there will be definitely new fundraise will be happening this year.
Unidentified Participant
And sir, are we comfortable to raise fund at low valuation such as are we trading it right now?
Manish K. Shah
See that’s the reason I’m telling you that we may post on for three to four months. You know, once this geog problem, war issues this gets settled because we were trading at around 140 to 150 before, at the time of February before, you know all this issue has come up. So once this gets settled then we may be started trading at around 135 or 150 rupees where we will be able to raise the fund.
Unidentified Participant
And sir, what depth to equity level are we comfortable
Manish K. Shah
Below 4.
Unidentified Participant
Okay sir. Thank you sir,
Operator
Thank you. The next question is from the line of Sagar Shah from Spark pwm. Please go ahead.
Unidentified Participant
Yeah, first of all thank you for the opportunity and many congratulations for excellent set of warnings actually. So my first question sir was related to that means we have achieved almost at around 20 or 30% CAGR growth if we compare actually nearly in the last three years and going forward from here from around 17 crores of worth of AVM in the next two to three years. What sort of are you confident for even similar growth or maybe even higher because as they have now more products as compared to last three years where we started.
That is the first question. And sir, second question. What is the portfolio mix that we are targeting in the next two to three years means what will be the portfolio mix between the two wheelers Used to use two wheelers, three wheelers and even the lab portion which is coming on board now which is a secure product and quite stable under you can say a very low, a low credit cost as compared to two wheelers actually. So what kind of portfolio mix are we targeting? That is my second question.
Manish K. Shah
Yeah, so answering to your first question. Yes of course we have been you know strengthening our team and especially our CBO Monil Shah is working very hard on you know further sales penetration and we are quite sure that at least 30% growth year on year on an incremental AUM we will be able to achieve by adding the new geography and by and of course we have added almost 4 new product to our portfolio. So growing is should not be an issue for us because you know almost we are present at six states especially when UP and MP is not penetrated.
So far we are not even 1% market share in the UP so there is a huge. And in the MP also our market share is only 3% so there is a huge scope in MP and UP. So and of course we are starting Karnatak also. So growth will not be a constraint for Manba. As far as answering your second question, yes within a three years time the two wheeler portfolio will come down to almost 60, 65% where we are going to in absolute number it will always grow. But as percentage contribution is concerned it will be around 65% and we are focusing on top up loan, personal loan as well as used two wheeler as well as three wheeler because we are having a lot of new tie ups also Coming up.
And as you rightly said, MSME Lab is also, you know, in next year will be very, very mature product. And it’s also safe, it is secured also. And always been seen that credit loss in this product is less than the unsecured. So it will be a very, very ideal combination at this junction for the, you know, putting the company on third and fourth gear. From here, no looking back because now we are well placed in the geography as far as geography diversification is concerned and as well as portfolio and product diversification is concerned.
Unidentified Participant
Okay, so is it to assume, sir that 60 to 60% will be two wheeler loans and the rest would comprise of three wheelers, used car loans, small business loans and personal loans? Is it correct?
Manish K. Shah
Yeah.
Unidentified Participant
Okay. Okay, fine. Thank you so much sir and all the best for.
Manish K. Shah
Thank you.
Operator
Thank you. Participants with Questions may enter STAR and 1. The next question is from the line of Prashant Kumar from Sunidi securities and Finance. Please go ahead.
Unidentified Participant
Yeah, thanks for. Thanks. Thank you sir once again for giving us opportunity. And my question is on signing the MOU with the. With a large OEM like GBS motor. So given the strategic nature of this partnership, are you seeing any deeper engagement from TBS ecosystem beyond this business sourcing particularly in interest of taking any equity stake in Manhwa Finance similar to the recent investment made by TBS group in Jana small finance bank.
Manish K. Shah
That is. That is not at this stage. But yes, this MoU has really helped us to reach out the not only three wheeler dealer but now we are getting help in reaching out the more and more two wheeler dealers also. And we are getting more comfort dealers are also making us more preferred financer in the two wheeler as far as TV motor is concerned. So we are in the first phase only. Whatever what you are talking, that kind of communication, nothing has been so far started.
Unidentified Participant
Okay, thank you.
Operator
Thank you. The next question is from the line of Javit Mehta and individual investor. Please go ahead. Mr. Mehta, you may proceed and ask your question. Not really. Could you just speak up please?
Unidentified Participant
Hello.
Operator
Yes. Yes, please proceed.
Unidentified Participant
Okay, thank you for the opportunity. My first question is like how do we process loans for the used car segment? Is it same as the two wheeler loans or is it different?
Manish K. Shah
So the entire credit team is completely different as far as used car is concerned. Because that is a complete different segment only. So sales team is also separate, credit is also separate. And as far as collection is concerned, that is all separate team. So the norms, you know the paying capacity because the ticket size two wheeler is 80,000 here the ticket size is almost around 4 lakh rupees. So there is a complete different process and SOP we set for the used car
Unidentified Participant
Turnaround time that caused in the used car or is it a little slow there?
Manish K. Shah
It is not exactly like a two wheeler where you know we have a one minute approval in the HD process. But yes the slow and steady we are growing, we are reducing our debt of approval. But here the valuation of the vehicle is also important and so it has come down to almost three hours. But further going will definitely, you know take initiative in reducing the debt.
Unidentified Participant
Okay, so understood. My last question will be what were the credit losses for this year and like is it was it similar to the previous year or was it like more than the previous year?
Manish K. Shah
No, so credit loss was almost similar than the previous years. It is around 1.25%, 1.25% of my.
Unidentified Participant
Okay, so. So I think so it has increased around 0.25% 25
Manish K. Shah
Exactly. Because my exact working is around 1.12. So by 10 bips will be here.
Unidentified Participant
Okay so and like on the industry side we are seeing that the MFI industry is now going through a good cycle. So do you expect the like some of the like effect incoming into the two wheeler industry, the two wheeler financing industry as well?
Manish K. Shah
Yeah, because you know if you see the last 6 months performance especially after GST. So 2 wheeler every month is growing as compared to the last year also as compared to the previous best month also in the April also in spite of the you know current scenario it tubular is the product which has been grown by almost 14%. So this is a similar trend we are seeing for May also because today almost, you know we are on a 19th of May we are having the same level of growing logins for the two wheeler. So as far as two wheeler is concerned it is going to be grow this year and coming years also.
Unidentified Participant
Okay, so okay, thank you. Thank you for the opportunity and all the best for the future.
Manish K. Shah
Yeah, thanks.
Operator
Thank you. As there are no further questions from participants I hand the floor over to the management for closing comments.
Manish K. Shah
Yeah, so I thank all the participants in this earning con call. I hope we have been able to answer your question satisfactorily. If you have any further questions or would like to know more about the company please reach out to our IR managers at Velorum Advisors. And thank you Velorum for organizing this earning call. Thank you. Thank you very much.
Operator
Thank you very much sir on behalf of Manba Finance limited that concludes this conference call. Thank you all for joining us. And you may now disconnect your lines. Thank you.