Muthoot Microfin gains after AUM rises 13% YoY to Rs 14,006 cr in FY26
Disbursements rose 6% YoY to Rs 9,418 crore in FY26 from Rs 8,872 crore in FY25. Collection efficiency improved to 96.43% in Q4 FY26 from 93.07% in Q4 FY25, marking a rise of 336 basis points.
The company said FY26 marked a return to normalized business momentum, with performance improving year-on-year and trending ahead of initial guidance across key parameters. The microfinance operating environment showed progressive stabilization during the year, despite transient disruptions in select states such as Bihar linked to legislative developments.
AUM growth was supported by a calibrated pickup in disbursements, with Q4 monthly run-rate scaling above pre-FY25 levels. The company?s diversification into individual loans, micro-LAP, and gold loans progressed as per its roadmap, with increasing contribution from non-JLG products and a foray into secured products. The JLG and non-JLG mix improved from 97:3 in March 2025 to 83:17 in March 2026. The small and micro enterprise individual loan portfolio grew to Rs 2,387 crore with near-zero delinquency.
The branch network stood at 1,670 as of March 31, 2026, compared with 1,699 a year earlier, reflecting a decline of 1.71% YoY following the consolidation of 91 branches. The company expanded into Assam and strengthened its presence in Telangana and Andhra Pradesh. Active customers stood at 33 lakh.
Asset quality improved, with gross non-performing assets (GNPA) declining 95 basis points to 3.89% in FY26 from 4.84% in FY25. Credit cost declined sharply by 590 basis points to 3.5% from 9.4%.
Funding strengthened during the year, with total borrowings rising 29.31% YoY to Rs 9,537 crore from Rs 7,375 crore in FY25. This included Rs 3,290 crore through PTCs at an average cost of 9.1%, Rs 865 crore via secured listed NCDs, and Rs 133 crore through ECBs. The borrowing cost declined 75 basis points to 10.27% in Q4 FY26 from 11.02% in Q4 FY25.
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.
