The third largest microlender Muthoot Microfin Ltd reported a 13% year-on-year rise in assets under management (AUM) to ₹14,006 crore as of March 31, 2026, compared with ₹12,357 crore a year earlier, according to its key business update for Q4 and FY26. Disbursements for FY26 increased 6% year-on-year to ₹9,418 crore from ₹8,872 crore in FY25. The company said FY26 saw a return to normalised business momentum with performance improving year-on-year and trending ahead of initial guidance across key parameters.
The company reported improved collection efficiency, which stood at 96.43% in Q4FY26 versus 93.07% in Q4FY25. As reported by CNBC TV18, the microfinance operating environment showed progressive stabilisation during the year, despite transient disruptions in select states, such as Bihar, linked to legislative developments. The JLG and non-JLG mix improved from 97:3 in March 2025 to 83:17 in March 2026, with the small and micro enterprise individual loan portfolio growing to ₹2,387 crore with near-zero delinquency.
Asset quality showed significant improvement with gross non-performing assets (GNPA) at 3.89% in FY26 versus 4.84% in FY25. According to the company's update, credit cost declined to 3.5% from 9.4% during the same period. The branch network stood at 1,670 as of March 31, 2026, compared with 1,699 a year earlier, following the consolidation of 91 branches, with active customers at 33 lakh.
Funding strengthened during the year, with total borrowings at ₹9,537 crore versus ₹7,375 crore in FY25. This included ₹3,290 crore through PTCs at 9.1% average cost, ₹865 crore via secured listed NCDs, and ₹133 crore through ECBs. Borrowing cost declined to 10.27% in Q4FY26 from 11.02% in Q4FY25. Shares of Muthoot Microfin Ltd ended at ₹173.25, up by ₹3.45, or 1.95% on the BSE today, April 20.
