Muthoot Microfin shares experienced their biggest intraday gain in over a year on Friday, July 10, surging as much as 16.5% to hit a 52-week high of ₹245 before settling at ₹239.30, up 13% during Friday's trading session. According to Live Mint, the stock's rally marked the biggest single-day gain in over a year and extended year-to-date gains to 34%, as investors cheered healthy business growth, improving asset quality, and continued portfolio diversification. The microfinance lender's shares have gained 28% in one month, significantly outperforming the 4% rise in the BSE Sensex. The average trading volume jumped over 20-fold with a combined 18 million equity shares changing hands on the NSE and BSE, demonstrating exceptional investor interest in the quarterly results.
Muthoot Microfin reported an 18% year-on-year increase in assets under management (AUM) for the June quarter, with the company's AUM rising to ₹14,457 crore as of June 30, compared with a year earlier. According to CNBC TV18 and Business Standard, the AUM was also up 3% sequentially from the March quarter. The market responded positively to the results, with shares surging 7.42% to ₹227.15 following the business update announcement. During the quarter, disbursements increased 49% year-on-year to ₹2,645 crore, demonstrating strong operational momentum. The company's total production volume grew 30% to 1,10,795 units compared to 85,232 units in the previous year, while sales volume surged 32.5% to 1,03,502 units versus 78,142 units. The growth was aided by continued traction in individual loans and the commencement of gold loan disbursements under the co-lending arrangement with parent Muthoot Fincorp.
The company's collection efficiency showed significant improvement, rising to 97.97% in Q1FY27 from 93% a year ago and 96.43% in the March quarter, representing a 497 basis points year-on-year improvement. As reported by CNBC TV18 and Business Standard, the company's X-Bucket collection efficiency stood at 99.89%, reflecting stronger recoveries. The Small and Micro Enterprise Individual Loan portfolio expanded to ₹3,214 crore, while the mix between Joint Liability Group (JLG) and Non-JLG loans improved to 76:24, compared with 83:17 in the preceding quarter. The loan portfolio continued to diversify with the company maintaining near-zero delinquency levels, with ICICI Securities noting that execution on portfolio diversification remains encouraging.
During the quarter, Muthoot Microfin commenced gold loan disbursements under a referral and co-lending arrangement with parent Muthoot Fincorp, disbursing ₹192.86 crore during the quarter. According to CNBC TV18 and Business Standard, CRISIL upgraded the company's long-term credit rating to CRISIL AA-/Stable from CRISIL A+/Positive, while reaffirming the CRISIL A1+ rating on its Commercial Paper. The upgrade reflects the company's strengthened credit profile and is expected to further enhance access to diversified funding sources at competitive rates, supporting future growth and funding efficiency. As of June 30, the company operated 1,671 branches and served 33 lakh active customers across the country, expanding its presence during the quarter across existing and newly entered markets including Telangana, Andhra Pradesh and Assam.
Muthoot Microfin outlined ambitious long-term strategic targets, aiming to achieve assets under management of ₹30,000 crore by FY30. The company also targets transitioning its loan portfolio to a 53.4% joint liability group (JLG) and 46.6% non-JLG mix by the end of the decade. During the quarter, the company further strengthened its funding profile by raising a total of ₹2,664 crore. The company also plans to increase digital collections, targeting 75% digital collections by 2030. Looking ahead, the company unveiled its Vision 2030 strategy during its inaugural Capital Markets Day, targeting a return on assets (RoA) of over 5% and a return on equity (RoE) exceeding 20%. As of June 30, 2026, the company maintained a robust liquidity position of ₹1,310 crore through diversified funding sources and un-availed sanctioned credit lines amounting to ₹3,485 crore.
