Muthoot Microfin Q2FY26 Results - Profit After Tax of Rs.30.5 crore for Q2FY26, up 393.6% sequentially
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 unaudited financial performance for the quarter and half year of the financial year 2025-26.
Business Highlights: Q2 FY26
* GLP grew by 2.5% QoQ to Rs. 12,558.8 crore; company disbursed Rs. 2,273.9 crore registering 28.1% QoQ
* Commences on-ground implementation of Gold loans and Micro-Lap ; Individual Loans portfolio reaches Rs. 257.2 crore.
* Consolidated 22 branches during the quarter to increase the efficiency of nation-wide footprint; Target 84 branches in FY26. Branch count reaches 1,718.
* CRISIL upgrades outlook on long term facilities/NCDs ‘Stable’ to ‘Positive’; Ratings Reaffirmed at 'Crisil A+’; CareEdge Global assigns ‘BB-/Stable’ rating to dollar bonds of Muthoot Microfin Limited
Financial Highlights: Q2FY26
* Total income for the quarter stood at Rs. 577.4 crore; Pre-provision operating profit (PPOP) stood at Rs. 149.0 crore
* Net Interest Margins at 11.9%, up 43 bps; Sustained decline in CoF from 10.8% in Q1FY26 to 10.6% in Q2FY26
* Disciplined underwriting and provisioning resulted in in provisioning cost at 3.6% with PAT for the quarter at Rs. 30.5 crore
* GNPA reduced to 4.61% as against 4.85% in Jun-25, NNPA (Net of Stage III provision) stood at 1.41% as against 1.58% in Jun-25
* Strong liquidity position with Rs. 1,158.7 crore of liquid funds and HQLA-GSec Investments along with DA/PTC sanctions of Rs. 1,900 crore and unutilized term funding sanctions of Rs. 757 crore
* Capital Adequacy improves to 28.91%, up 24 bps YoY and 106 bps QoQ
* 25% of our collections are via digital channels such as UPI/Customer App, while 100% disbursements are entirely executed digitally.
Commenting on the performance:
Mr. Thomas Muthoot, Chairman & Non-Executive Director of Muthoot Microfin, said
“The business is firmly back on track, with healthy momentum across disbursements, profitability, and asset quality. We believe this momentum will only strengthen in the coming quarters.
With the business momentum expected to sustain and accelerate, we are enhancing our product portfolio and actively pursuing our diversification strategy to drive the next phase of growth. The core microfinance business continues to be the foundation of our operations, we are expanding into product segments such as Gold Loans, Loan Against Property, and Individual Loans.
Backed by disciplined risk management, responsible lending practices, and a sharpened focus on operational excellence, we have laid a strong platform for continued performance improvement. We expect this momentum to further accelerate over the next two quarters. Looking ahead to FY27, we are entering a phase of strong and sustained growth. With a strong underwriting and operational excellence, Muthoot Microfin is well-positioned to capture the significant opportunities in coming years.”
Mr. Sadaf Sayeed, CEO, Muthoot Microfin, said
“Focused execution at the ground level continues to deliver results, with clear gains in disbursement momentum. For Q2FY26, disbursements reached Rs. 2,273.9 crore, marking a 28.1% quarter-on-quarter growth, driven by our existing customers & newer geographies.
This positive momentum is underpinned by disciplined risk management, which has driven meaningful improvements in portfolio health. Our asset quality has strengthened significantly, with GNPA declining from 4.85% in Jun-25 to 4.61% in Sep-25. Credit costs reduced to 3.6%, well below the guided range of 4–6%. In addition, our X-bucket collection efficiency stood at 99.8%, reflecting the continued effectiveness of our collection and monitoring processes.
Looking ahead, the outlook for the second half of the financial year remains positive across all key parameters. We anticipate steady growth in our MFI book as we continue to strengthen collections, improve portfolio quality, and broaden our outreach.
Further, in line with our diversification strategy, we have successfully launched our Gold and LAP products, marking a significant step toward building a more resilient and diversified business model. This strategic expansion is expected to meaningfully enhance the book mix over the coming years, supporting consistent, high-quality growth.”
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