| Metric | Value (₹ Cr) | vs Q2 FY26 |
|---|---|---|
| Revenue | 602.81 | 4.6% |
| Total Income | 603.04 | 4.4% |
| Expenditure | 533.94 | 1.2% |
| PBT | 69.11 | 86.2% |
| Net Profit | 62.44 | 104.6% |
| OPM | 49.96% | 5.13pp |
| NPM | 10.35% | 5.06pp |
| EPS | 3.73 | 105.0% |
Muthoot Microfin Q3 FY26: Profit After Tax Grew by 104.6% QoQ, AUM at Rs. 13,078 Crore
09 Feb 2026 · 9 Feb, 8:25 pm
Summary
Muthoot Microfin, a leading Non-Banking Financial Company-Micro Finance Institution, reported its unaudited financial performance for the quarter and nine months of the financial year 2025-26. The company saw a growth in GLP, improved loan mix, increased disbursements, and a reduction in opex. It also raised significant funds during the quarter. The financial highlights include an increase in total income, pre-provisioning operating profit, and profit after tax. The company maintains a healthy capital adequacy ratio and a strong liquidity position.
Key Highlights
- 1
GLP grew by 5.4% YoY from Rs. 12,404.9 to Rs. 13,078.6 crore and 4.1% QoQ
- 2
JLG and Non-JLG loan mix improved from 97.1 : 2.9 in Mar’25 to 88.1 : 11.9 in Dec’25
- 3
Small and micro enterprise IL portfolio growing to Rs 1,097.6 crore, having near-zero delinquency
- 4
Disbursements grew by 22.5% YoY from Rs 2,035.1 crore in Q3FY25 to Rs. 2,492.2 crore in Q3FY26
- 5
43 branches consolidated during the quarter; total branch network stood at 1,691, with employee strength of 16,032
- 6
Raised Rs. 450 crore through secured, rated, listed NCDs at a coupon range of 9.70%- 9.95% per annum during the quarter and raised $15 million in ECB
- 7
Total income stood at Rs. 605.4 crore, while Pre-Provisioning Operating Profit (PPOP) was Rs. 175.3 crore for the quarter
- 8
Profit After Tax stood at Rs. 62.4 Crore, a growth of 104.6% QoQ
- 9
Maintains a healthy Capital Adequacy Ratio of 26.4% with Debt-Equity Ratio of 3.3x
- 10
Digital adoption remained strong, with 27.8% of collections through digital channels such as UPI and the customer app, while 100% of disbursements were executed digitally
Management Comments
Mr. Thomas Muthoot
The microfinance sector has emerged from a challenging phase with industry gradually returning to a sustainable growth path. We are seeing a steady normalization in growth, underpinned by disciplined lending, improving borrower behaviour, and continued strengthening of grassroots fundamentals. Against this backdrop, Muthoot Microfin reported a strong performance, with positive trends across key operational and financial parameters. During the period, business momentum picked up, with assets under management crossing the 13,000 crore mark. Our diversification efforts also progressed well, with the individual loan book scaling past ~1,000 crore, and Micro-LAP disbursements picking up pace. This helped us expand our role from a micro finance lender to a long-term partner in our customers’ growth. Notably, the growth delivered was profitable, with Pre-Provisioning Operating Profit improved to Rs. 175.3 crore in Q3 FY26 from Rs. 148.9 crore in Q2 FY26. Profit After Tax stood at Rs. 62.4 crore, registering a growth of 104.6% QoQ, underscoring prudent underwriting and focused risk management. Looking ahead, India is well positioned for faster economic growth, with the rural economy playing a pivotal role. The Union Budget 2026-27’s emphasis on credit-linked livelihoods and allied agricultural activities is expected to support income diversification in rural areas, enhance borrower repayment capacity, and thereby strengthen the microfinance ecosystem while opening up new opportunities for responsible lenders. Accordingly, the Company remains well positioned for sustainable growth as the sector advances. Our long-term strategy focuses on preserving asset quality, expanding financial inclusion, and maintaining a disciplined and prudent risk management framework.
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