Muthoot Microfin surged 7.42% to Rs 227.15 after the company reported an 18% year-on-year (YoY) increase in assets under management (AUM) and strong disbursement growth in its business update for the quarter ended 30 June 2026.
The company’s AUM stood at Rs 14,457 crore as of 30 June 2026, up 18% from a year earlier and 3% higher than 31 March 2026, reflecting continued portfolio expansion.
Disbursements during the first quarter of FY27 rose 49% YoY to Rs 2,645 crore. During the quarter, the company also commenced gold loan disbursements under a referral and co-lending arrangement with its parent, Muthoot Fincorp, disbursing Rs 192.86 crore.
The loan portfolio continued to diversify, with the joint liability group (JLG) and non-JLG mix improving to 76:24 as of 30 June 2026 from 83:17 as of 31 March 2026. The Small and Micro Enterprise Individual Loan portfolio increased to Rs 3,214 crore while maintaining near-zero delinquency.
On the asset quality front, collection efficiency improved to 97.97% in Q1 FY27 from 93.00% in Q1 FY26 and 96.43% in Q4 FY26. X-Bucket collection efficiency stood at 99.89%, reflecting sustained collection discipline.
As of June 30, 2026, the company maintained a robust liquidity of 1,310 crore through diversified funding sources and un-availed sanctioned credit lines amounting to Rs 3,485 crore, providing adequate financial flexibility to support future business growth. During the quarter, the company further strengthened its funding profile by raising a total of Rs 2,664 crore.
The company outlined its long-term strategic roadmap, targeting assets under management (AUM) of Rs 30,000 crore by FY30. It also aims to transition its loan portfolio to a 53.4% joint liability group (JLG) and 46.6% non-JLG mix by the end of the decade.
Further, the company is targeting a return on assets (RoA) of over 5% and a return on equity (RoE) of more than 20% by FY30. It also plans to increase digital collections, with a target of achieving 75% digital collections by 2030.
As of 30 June 2026, Muthoot Microfin operated 1,671 branches and served 33 lakh active customers. During the quarter, the company expanded its presence across existing and newly entered markets, including Telangana, Andhra Pradesh and Assam.
Muthoot Microfin is a part of Muthoot Pappachan Group (also known as Muthoot Blue) and is one of the leading listed MFIs in India. It provides financial assistance through microloans, such as income-generating loans, to women engaged in small businesses.
The company reported standalone net profit of Rs 71.12 crore in Q4 FY26 compared with net loss of Rs 401.15 crore in Q4 FY25. Total income jumped 14.9% YoY to Rs 638.90 crore in Q4 FY26.
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