Bangalore : Muthoot Microfin Limited (NSE: MUTHOOTMF, BSE: 544055), among India’s leading Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), focused on providing micro-loans to women entrepreneurs with a focus on rural regions of India, today announced its audited financial performance for the quarter and full financial year ended March 31, 2026.
Business Highlights
Gross Loan Portfolio (GLP) grew 13.3% YoY and 7.1% QoQ to Rs. 14,005.6 crore
Disbursements stood at Rs. 2,876.7 crore, registering a growth of 46.8% YoY and 15.4% QoQ
Non-JLG portfolio expanded to 17.5%, reflecting steady traction in the segment
25 branches consolidated during the quarter, 91 for FY26; total branch network stood at 1,670, with employee strength of 15,735
CARE Ratings upgraded ESG Rating to 80.8 (CareEdge-ESG 1+) from 72.2 (CareEdge-ESG 1)
Financial Highlights – Q4 FY26
Total income stood at Rs. 638.9 crore, growing 14.9% YoY
Pre-Provisioning Operating Profit (PPOP) increased 48.0% YoY to Rs. 192.8 crore
Profit After Tax (PAT) stood at Rs. 71.1 cro
Net Interest Margin (NIM) remained healthy at 12.0%, with cost of funds declining by 75 bps to 10.27%
Disciplined underwriting and provisioning led to a credit cost of 2.8%
Asset quality improved:
GNPA declined by 95 bps YoY to 3.89%
NNPA (net of Stage III provisions) reduced by 20 bps YoY to 1.14%
Maintained a strong liquidity position, supported by:
Rs. 882 crore in liquid funds and HQLA–GSec investments
Rs. 1,728 crore in DA/PTC sanctions
Rs. 1,427 crore in unutilised term funding sanctions
Capital adequacy stood robust at 23.9%
Operational & Digital Highlights
Digital adoption remained strong, with 33.9% of collections through digital channels vs 27.8% in Q3 FY26.
Customer App Installation touches 2.0 million mark
100% of disbursements were executed digitally
Commenting on the performance:
Mr. Thomas Muthoot, Chairman & Non-Executive Director of Muthoot Microfin, said
“We are seeing a clear and broad-based improvement in the operating environment, with collection trends strengthening across geographies and borrower segments. The sector is benefiting from tighter underwriting, calibrated disbursement strategies, and a more disciplined approach to growth. At the same time, credit demand remains resilient, particularly in income-generating segments, which is supporting a healthier and more sustainable growth cycle for the microfinance industry.
Across the industry, there is a visible shift underway, from high-velocity, unsecured group lending towards more diversified, higher-ticket and cashflow-backed products. Lenders are increasingly focusing on portfolio quality, risk-adjusted growth, and customer-level underwriting, which is leading to improving asset quality metrics and better stability in the system.
At Muthoot Microfin, our performance reflects these improving trends as well as the strength of our execution. Our AUM grew by ~13% year-on-year to Rs. 14,005.6 crore, supported by a strong pickup in disbursements, which increased by 47% year-on-year and 15% sequentially. Importantly, this growth is coming alongside a clear improvement in portfolio quality, collection efficiency (X-bucket) strengthened to 99.82%, while GNPA declined by 95 basis points year-on-year to 3.89%, reflecting tighter portfolio control and better on-ground behaviour.
A key highlight for us has been the ongoing shift in our portfolio mix. We are consciously pivoting towards higher-ticket, business-oriented and secured lending, which is not only enhancing yields but also improving portfolio resilience and customer stickiness. Our newer products, particularly the Muthoot Small Enterprise Loan, have scaled up well, with their share in the portfolio increasing to ~17%, while continuing to exhibit strong collection performance.
Overall, the business is structurally stronger today, more diversified in its product mix, sharper in its risk management, and more efficient in its cost structure. With improving industry conditions and our strategic shift towards higher-quality growth, we believe we are well positioned to deliver consistent growth with stronger and more stable risk metrics going forward.”
Mr. Sadaf Sayeed, CEO, Muthoot Microfin, said
“We are pleased to report a strong performance in Q4 FY26, underpinned by healthy growth in our loan portfolio, improved profitability, and continued strengthening of asset quality. Our GLP growth of over 13% YoY, coupled with a sharp expansion in PPOP and stable margins, reflects the resilience of our business model and disciplined execution.
The broader microfinance and MSME lending ecosystem continues to see steady demand, supported by improving rural cash flows, increased formalization, and deeper financial inclusion. At the same time, we remain mindful of evolving credit dynamics and have maintained a prudent approach to underwriting and provisioning, which is reflected in our declining NPAs and controlled credit costs.
Our continued focus on diversification, with the non-JLG portfolio gaining traction, along with strong digital adoption across collections and disbursements, positions us well for sustainable growth. With a robust capital base and strong liquidity, we are confident of navigating the evolving environment while delivering consistent value to all stakeholders”
Key Metrics: FY26
| Particulars | FY26 | FY25 | YoY |
| Gross Loan Portfolio (Rs. Cr) | 14,005.6 | 12,356.7 | 13.3% |
| Borrowers (Lakh) | 32.7 | 34.3 | -4.7% |
| Branches (No.) | 1,670 | 1,699 | -1.7% |
| Particulars (Rs. Cr) | FY26 | FY25 | YoY |
| Net Interest Income (NII) | 1,415.5 | 1,551.1 | -8.7% |
| Pre-Provision Operating Profit (PPOP) | 655.6 | 867.6 | -24.4% |
| Profit After Tax (PAT) | 170.3 | -222.5 | 176.5% |
| Key Ratios | FY26 | FY25 | YoY |
| Net Interest Margin (NIM) | 11.9% | 12.4% | -48 bps |
| Cost/Income Ratio | 57.0% | 47.5% | 949 bps |
| Opex/GLP Ratio | 6.7% | 6.2% | 49 bps |
| Return on Assets (ROA) | 1.3% | -1.8% | 314 bps |
| Return on Equity (ROE) | 6.2% | -8.2% | 1440 bps |
Key Metrics: Q4FY26
| Particulars (Rs. Cr) | Q4 FY26 | Q4 FY25 | YoY | Q3FY26 | QoQ |
| Net Interest Income (NII) | 369.0 | 321.1 | 14.9% | 358.8 | 2.8% |
| Pre-Provision Operating Profit (PPOP) | 192.8 | 130.3 | 48.0% | 175.3 | 10.0% |
| Profit After Tax (PAT) | 71.1 | -401.2 | 117.7% | 62.4 | 13.9% |
| Key Ratios | Q4 FY26 | Q4 FY25 | YoY | Q3FY26 | QoQ |
| Net Interest Margin (NIM) | 12.0% | 10.9% | 104 bps | 12.0% | -4 bps |
| Cost/Income Ratio | 53.2% | 61.6% | -842 bps | 54.8% | -163 bps |
| Opex/GLP Ratio | 6.4% | 6.6% | -25 bps | 6.5% | -14 bps |
| Gross NPA | 3.9% | 4.8% | -95 bps | 4.4% | -51 bps |
| Return on Assets (ROA) | 2.1% | -13.0% | 1,510 bps | 1.9% | 16 bps |
| Return on Equity (ROE) | 10.1% | -56.9% | 6,702 bps | 9.1% | 99 bps |