Muthoot Microfin delivered a remarkable financial turnaround in the March quarter, posting a net profit of ₹71.1 crore compared with a loss of ₹401.1 crore a year ago, according to an exchange filing. This sharp reversal was driven by stronger loan growth and improving asset quality metrics. The company's net interest income rose 20.1% year-on-year to ₹400.3 crore, reflecting steady expansion in the loan book and improved operating traction. The lender's assets under management (AUM) crossed ₹14,006 crore, up 13.3% YoY, supported by strong lending activity, with disbursements surging 46.8% YoY to ₹2,876.7 crore and up 15.4% sequentially, indicating sustained demand across segments.
Asset quality metrics showed meaningful improvement during the quarter, with gross non-performing assets (GNPA) declining by 95 basis points to 3.89%, while net NPA eased to 1.14%, down 20 basis points from a year earlier, as reported by the company. The company's assets under management (AUM) crossed ₹14,006 crore, up 13.3% YoY, supported by strong lending activity. Disbursements surged 46.8% YoY to ₹2,876.7 crore, indicating sustained demand across segments and sequential growth momentum.
Muthoot Microfin continued its operational rationalization strategy, consolidating 25 branches during the quarter and 91 over FY26, taking its total network to 1,670 branches. The company's employee base stood at 15,735. Management highlighted improving sector dynamics, with better collection efficiencies and a shift towards more diversified and higher-ticket lending. The company is increasingly focusing on business-oriented and secured loan products, which are contributing to improved portfolio quality and resilience. The lender added that it remains well-positioned to sustain growth, backed by a stronger balance sheet, disciplined underwriting, and favourable trends in the microfinance and MSME lending ecosystem.
Shares of Muthoot Microfin ended higher on Wednesday, May 6, by 4.19% at ₹214.40 on the NSE, reflecting positive market sentiment following the quarterly results announcement. The company stated it remains well-positioned to sustain growth, backed by a stronger balance sheet, disciplined underwriting, and favourable trends in the microfinance and MSME lending ecosystem.
