Muthoot Microfin Reports 13% AUM Growth and Strengthened Asset Quality for FY26
Muthoot Microfin Limited reported a return to normalized business momentum in the fiscal year ending March 31, 2026. The Company’s performance improved year-on-year, showing key parameters trending ahead of initial guidance.The financial review highlights that the Company's Assets Under Management (AUM) expanded by 13% year-over-year (YoY), reaching Rs. 14,006 crore as of March 31, 2026. This figure compared to Rs. 12,357 crore recorded at March 31, 2025.
The overall MFI operating environment saw progressive stabilization during the year. The Company’s growth was supported by a calibrated pickup in disbursements, with the monthly run-rate in Q4 scaling above pre FY25 levels. Management noted that the ongoing diversification initiative into new product lines—Individual Loans, Micro-Lap, and Gold Loans—remained on track, leading to an increasing contribution from non-JLG and secured products in the portfolio mix.
In terms of portfolio composition, the loan mix improved significantly, shifting from 97:3 (JLG:Non-JLG) in March 2025 to 83:17 in March 2026. Furthermore, the small and micro enterprise Individual Loan (IL) portfolio grew to Rs. 2,387 crore, maintaining near-zero delinquency.
During the fiscal year 2025-26, disbursements surged by 6% YoY, totaling Rs. 9,418 crore, up from Rs. 8,872 crore in the fiscal year 2024-25.
Key Operational and Asset Quality Metrics
The Company demonstrated progressive improvements in asset quality throughout the year. Collection Efficiency for Q4 FY26 stood at 96.43%, an increase of 336 basis points compared to 93.07% recorded in Q4 FY25. Collection performance also showed a marked improvement in the X Bucket, which rose by 85 basis points from 98.97% in Q4 FY25 to 99.82% in Q4 FY26.The key asset quality trends for the fiscal years are summarized below:
| Particulars | FY26 | FY25 |
|---|---|---|
| GNPA (%) | 3.89% | 4.84% |
| Credit Cost (%) | 3.5% | 9.4% |
Funding and Ratings Boost
The Company significantly strengthened its funding profile during FY 2025-26, raising a total of Rs. 9,537 crore, compared to Rs. 7,375 crore in FY 2024-25. The raised funds included Rs. 3,290 crore through PTCs (at an average cost of 9.1%), Rs. 865 crore through secured, rated, listed NCDs, and Rs. 133 crore via ECB. The Company also retained unavailed sanctions totaling Rs. 2,555 crore as of the year-end. This funding strength helped reduce the overall borrowing cost, which declined from 11.02% in Q4 FY25 to 10.27% in Q4 FY26.The corporate credit profile also received multiple enhancements during the year:
- CRISIL upgraded the outlook on long-term facilities/NCDs from 'Stable' to 'Positive' while reaffirming the 'CRISIL A+' rating.
- CareEdge Global assigned a 'BB-/Stable' rating to the Company's dollar bonds.
- ESG Rating: The Company's ESG rating improved from 72.2 (CareEdgeESG 1) to 80.8 (CareEdge-ESG 1+), marking the highest ESG rating awarded to an NBFC by CareEdge ESG Ratings.
Operationally, the Company maintained a total of 1,670 branches as of March 31, 2026. The total active customer count stood at 33 lakh customers. Additionally, the Mahila Mitra app cumulative downloads reached 20 lakh customers.
MUTHOOTMF Stock Price Movement
Muthoot Microfin Limited shares today slipped by 2.31% to settle at ₹172.17, closing significantly lower than its previous day's close. The equity finished trading on substantial volume of 92,973 shares, marking a decline from the day's opening price of ₹176.01.Source:
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