Muthoot Microfin Q4 Profit Jumps To ₹71.1 Crore, Asset Quality Improves As AUM Rises 13%
Muthoot Microfin reported a sharp turnaround in Q4 FY26 with net profit rising to Rupees 71.1 crore from a loss a year ago, driven by lower credit costs, improving collections, and steady loan growth. The company also reported stronger asset quality and higher disbursements during the quarter. Assets under management (AUM) rose 13.3 percent year-on-year to Rs 14,005.6 crore in Q4 FY26.
Muthoot Microfin reported a sharp turnaround in Q4 FY26 with net profit rising to Rupees 71.1 crore from a loss a year ago, driven by lower credit costs, improving collections, and steady loan growth. |
Mumbai: Muthoot Microfin Ltd posted a consolidated net profit of Rupees 71.1 crore in the quarter ended March 2026 compared with a net loss of Rupees 401.1 crore in Q4 FY25. Sequentially, profit rose 13.9 percent from Rupees 62.4 crore reported in Q3 FY26. Total income for the quarter increased 14.9 percent year-on-year to Rupees 638.9 crore against Rupees 556.2 crore in the corresponding quarter last year. Revenue from operations stood at Rupees 631.8 crore, up 13.8 percent YoY and 4.8 percent sequentially.
Loan Growth And Disbursements Stay Strong
Assets under management (AUM) rose 13.3 percent year-on-year to Rupees 14,005.6 crore in Q4 FY26 from Rupees 12,356.7 crore a year ago. Sequentially, AUM grew 7.1 percent from Rupees 3,078.6 crore in Q3 FY26. Disbursements during the quarter increased 46.8 percent YoY and 15.4 percent QoQ to Rupees 2,876.7 crore, reflecting improving credit demand and stronger execution momentum. Active clients stood at 3.27 million during the quarter.
ALSO READ
Asset Quality Improves
The microfinance lender reported improvement in asset quality metrics during the quarter. Gross non-performing assets (GNPA) declined to 3.89 percent from 4.40 percent in Q3 FY26 and 4.84 percent in Q4 FY25. Net NPA improved to 1.14 percent from 1.34 percent in both Q3 FY26 and the year-ago quarter. Collection efficiency improved to 96.43 percent in Q4 FY26, while the X-bucket collection efficiency remained stable at 99.82 percent.
Margins And Costs Show Improvement
Pre-provision operating profit rose 48 percent year-on-year to Rupees 192.8 crore, while cost-to-income ratio improved sharply to 53.2 percent from 61.6 percent in Q4 FY25. Credit cost moderated to 2.8 percent during the quarter from 3.3 percent in Q3 FY26. Net interest margin remained stable at 12 percent, while return on assets improved to 2.1 percent.
ALSO READ
FY26 Performance
For the full financial year FY26, Muthoot Microfin reported total income of Rupees 2,380.7 crore and a net profit of Rupees 170.3 crore, compared with a net loss of Rupees 222.5 crore in FY25. The company has guided for 12-15 percent AUM growth in FY27 with further improvement in margins and profitability.
Disclaimer: This report is based on the company’s audited Q4 FY26 disclosures and does not constitute investment advice.
RECENT STORIES
-
-
-
-
-