Muthoot Microfin Limited — Investor Meet, 13-05-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Muthoot Microfin’s AUM grew 1.3% to INR12,357 Cr in FY25, while disbursements fell 16.8% to INR8,872 Cr amid cautious growth. Net interest income rose 14.3% YoY to INR1,551 Cr, and total income increased 13.7% to INR2,564 Cr. Gross NPA rose to 4.84%, with elevated credit costs of 9.4%, resulting in a loss of INR222 Cr. Collection efficiency was strong at 93.6% for FY25 and 99.5% in April.

Management is focusing on cross-selling secured loans to improve portfolio quality and customer stickiness, alongside tightening lending guardrails. Provision coverage improved markedly, with Stage 2 at 30.8% and Stage 3 at 73.3%. Growth guidance is conservative at 5–10% for FY26 with stable margins and credit costs expected to normalize at 4–6%. ROA is targeted at ~2% for FY26, improving to ~4% by FY27. The company earned a top-tier ESG rating, underscoring governance strengths and long-term confidence in sustainable growth.