Muthoot Microfin Limited — PPTs, 11-08-2025: Investor Presentation

Here is the financial summary:

**Financial Highlights:**

Muthoot Microfin's Q1 FY26 AUM was 12,252.8 Cr, with marginal QoQ/YoY declines. Profit after tax (PAT) rebounded QoQ to 6.2 Cr, though sharply down YoY. Total income was 559.1 Cr. Asset quality showed GNPA at 4.85% and NNPA at 1.58%. ROA (0.20%) and ROE (0.94%) indicate a quarterly return to profitability.

**Strategic Initiatives & Growth Drivers:**

MML expanded into Assam, Telangana, and Andhra Pradesh. Digital adoption is key, driven by e-KYC and increased "Mahila Mitra" app usage for collections. Future plans include AI/ML integration across operations and product diversification into IL/BL, Micro LAP, and Gold Loans for existing clients.

**Business Developments:**

The company successfully resolved natural calamity loan impacts via insurance. Tighter sourcing "Guardrails" combined with process efficiency helped mitigate disbursement decline despite increased rejections. A strong 96% client retention rate was maintained, highlighting customer loyalty.

**Market Position & Competitive Advantage:**

As the Muthoot Pappachan Group's second-largest AUM company, MML leverages strong brand recall and synergies. Its resilient business model is supported by a robust, technology-backed risk management framework, ensuring consistent rural penetration.

**Investor Implications:**

The sequential return to profitability and strategic focus on digital transformation and new product lines signal positive growth potential. Robust capitalization (27.85% CRAR) provides stability for future expansion, though ongoing asset quality monitoring remains prudent.