The paper discusses the problem of speed and state estimation for the induction motor (IM) drive and presents a double-manifold Sliding Mode observer. This is obtained by adding extra feedback terms to a single-manifold observer design. Both designs are based on the model of the IM in the stationary reference frame. The observer uses compound manifolds which are constructed as a combination of the estimated states and mismatches. Observers with compound manifolds have not been widely investigated because they cannot be designed using a standard procedure; however, they may have very interesting properties. The paper investigates the behavior of a single-manifold observer first; it is shown that this only converges partially and provides an approximate speed estimate. Based on this, a double-manifold observer is designed. This estimates the fluxes, drives the current mismatches to zero and yields an accurate speed estimate. The method is applicable in a sensorless IM drive control algorithm where the speed, the flux magnitude and the rotor flux angle are needed. The theoretical developments are supported with simulations.