Muthoot Microfin Ltd Q4 FY26 Results

We are seeing a clear and broad-based improvement in the operating environment, with collection trends strengthening across geographies and borrower segments. The sector is benefiting from tighter underwriting, calibrated disbursement strategies, and a more disciplined approach to growth. At the same time, credit demand remains resilient, particularly in income- generating segments, which is supporting a healthier and more sustainable growth cycle for the microfinance industry. Across the industry, there is a visible shift underway, from high-velocity, unsecured group lending towards more diversified, higher-ticket and cashflow-backed products. Lenders are increasingly focusing on portfolio quality, risk-adjusted growth, and customer-level underwriting, which is leading to improving asset quality metrics and better stability in the system. At Muthoot Microfin, our performance reflects these improving trends as well as the strength of our execution. Our AUM grew by ~13% year-on-year to Rs. 14,005.6 crore, supported by a strong pickup in disbursements, which increased by 47% year-on-year and 15% sequentially. Importantly, this growth is coming alongside a clear improvement in portfolio quality, collection efficiency (X-bucket) strengthened to 99.82%, while GNPA declined by 95 basis points year-on- year to 3.89%, reflecting tighter portfolio control and better on-ground behaviour. A key highlight for us has been the ongoing shift in our portfolio mix. We are consciously pivoting towards higher-ticket, business-oriented and secured lending, which is not only enhancing yields but also improving portfolio resilience and customer stickiness. Our newer products, particularly the Muthoot Small Enterprise Loan, have scaled up well, with their share in the portfolio increasing to ~17%, while continuing to exhibit strong collection performance. Overall, the business is structurally stronger today, more div