Manba Finance Final Dividend FY26 — ₹0.25/Share, Record Date 18 Sep 2026

Manba Finance Limited is an RBI-registered, non-deposit-taking NBFC founded in 1996 and headquartered in Mulund, Mumbai. It began as a two-wheeler loan sourcing agent and now runs its own book across new two-wheeler, three-wheeler, used-car, small-business and personal loans. The company listed on the exchanges in September 2024.

Manba Finance operates through a dealer-led model spanning roughly 71 locations and around 1,100+ dealers across Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh and Chhattisgarh, with two-wheelers forming the bulk of its assets under management (AUM). AUM crossed ₹1,730 crore in Q1 FY27. As a lender, its business is to borrow and on-lend — a structure that shapes how its dividends should be read, as explained in the cash-flow section below.

The most important thing to understand about the Manba Finance dividend is that the “10% for FY26” label is a face-value artefact. Ten percent of a ₹10 face value is ₹1.00 — but an investor buying at the market price earns only about 0.84%. For a final dividend of ₹0.25, the real return is a token 0.21%.

The second point is intent. Manba Finance is a lender growing its loan book over 20% a year. It is deliberately retaining capital, paying out only about 11% of profit. That is not a weakness — it is a conscious choice to fund growth. The dividend is best read as a small shareholder-goodwill gesture layered on top of a capital-compounding story, not as a reason to own the stock for income.

On disclosed information, Manba Finance has moved from ₹0.50 per share in FY25 to ₹1.00 per share in FY26 — a doubling, though off a tiny base. Whether this cadence continues depends on how quickly the company deploys its surplus capital into the loan book and on profit growth. The company has not disclosed any formal dividend policy or future payout guidance, so forward figures cannot be stated as fact.

One forward signal does matter: Manba Finance has called an EGM for 19 October 2026 to approve a ₹99.99 crore preferential equity issue (up to ~50 lakh shares at ₹135). Fresh equity raises the share base over which future dividends are spread and could nudge the already-low per-share payout lower unless profits scale faster. This is disclosed information, not a prediction of outcome.

Manba Finance Limited’s Board recommended a final dividend of ₹0.25 per equity share of ₹10 face value for FY2025-26 alongside its audited results on 18 May 2026. In a filing to NSE and BSE dated 31 August 2026, the company fixed Friday, 18 September 2026 as the record date to determine members entitled to the final dividend, “if any.”

The dividend was subsequently approved by shareholders at the 30th Annual General Meeting held on 26 September 2026, where the resolution passed with the requisite majority. Because a final dividend requires AGM approval under the Companies Act, the record-date notice carried the standard “if any” qualifier until that approval was obtained. The paid-up equity capital stood at ₹50.24 crore, implying roughly 5.02 crore shares outstanding.

This is where Manba Finance investors are most often misled. The dividend percentages quoted by the company (2.5% final, 10% for the full year) are percentages of the ₹10 face value — not of the price you actually pay.

Why is the yield so low? Not because the price collapsed or the business is weak — Manba Finance grew profit 20% in FY26. The low yield simply reflects a deliberately small payout from a company reinvesting in growth. A ₹1 lakh investment in Manba Finance would have earned roughly ₹840 of dividends across FY26.

Manba Finance has a short but consistent dividend record. It began paying after its September 2024 listing and has distributed in every half-year since: ₹0.50 total in FY25 and ₹1.00 total in FY26, with a first interim of ₹0.25 already paid in FY27. There have been no dividend cuts, no suspensions and no special dividends to date.

On ShareBazaar Online’s classification, this makes Manba Finance an emerging, consistent payer rather than a proven one — the track record is real but only two full years long. The growth trend (a doubling of the full-year payout) is encouraging, yet investors should weigh it against the very small absolute amounts and the pending equity dilution. No bonus or stock split has occurred, so no per-share restatement of this history is required.

For most companies, a negative operating cash flow would be a red flag against a dividend. For an NBFC like Manba Finance, it usually is not. A lender’s biggest “operating” outflow is fresh loan disbursement — so in any fast-growing year, reported operating cash flow is typically negative by design, not because of stress.

That means the standard “free cash flow coverage” test is the wrong tool here. Manba Finance’s ₹5.0 crore full-year dividend is not funded from surplus operating cash; it is paid from accounting profit and capital reserves, topped up by fresh borrowings and equity that fund the loan book. The right questions for an NBFC dividend are earnings cover and capital adequacy — both of which (36x cover on the final dividend; 24.4% CRAR) are comfortably strong. Exact FY26 operating cash flow figure: Not Disclosed in the record-date filing.

On ShareBazaar Online’s four-test framework — earnings cover, payout discipline, capital adequacy and earnings trend — the Manba Finance dividend screens as Sustainable. The genuine question is not whether the payout can be maintained (it easily can), but whether such a tiny distribution is meaningful to shareholders at all.

Promoters hold 75.00% of Manba Finance — the regulatory maximum — with FIIs at 0.90% and public shareholders at about 24.10%. Because dividends are paid pro-rata, this concentration means the bulk of every rupee distributed flows to the promoter group.

For minority investors, the per-share amount is identical to the promoters’; there is no unfair tilt in the mechanics. But it is worth noting the capital-allocation picture: the company is paying out ~₹5 crore a year in dividends while simultaneously seeking to raise ~₹100 crore of fresh equity — a sign that growth, not distribution, is the priority.

Since FY2020-21 India follows the classical system: dividends are taxed in the hands of the investor at their applicable income-tax slab rate, with no Dividend Distribution Tax. Under Section 194, the company deducts 10% TDS only if total dividend from that company exceeds ₹10,000 in a financial year (threshold raised from ₹5,000 effective 1 April 2025); with no PAN, TDS is 20%.

General information only, not tax advice. Verify your position with a qualified tax professional.

Manba Finance Limited’s FY2025-26 final dividend of ₹0.25 per share (record date 18 September 2026) is a well-covered, clearly sustainable payout — but it is a growth-stock gesture, not an income stream. The “10% for FY26” headline is a face-value figure; the real market yield is under 1%.

The positives are genuine: ~47% four-year profit CAGR, a 24.4% capital buffer, 36x earnings cover and an unbroken (if short) payment record. The negatives are equally clear: a token yield, pending equity dilution, cyclical NPAs and thin micro-cap liquidity. For income-focused investors, the yield is simply too small to matter; for those drawn to the growth story, the dividend is a minor bonus. ShareBazaar Online presents the facts and the forensics — the decision is yours.