Muthoot Microfin Limited — PPTs, 05-11-2025: Investor Presentation

Muthoot Microfin's Q2 FY26 saw its AUM grow 2.5% QoQ to ₹12,558.8 Cr, with disbursements up 28.1% QoQ to ₹2,273.9 Cr. Profit after tax (PAT) soared almost 4x QoQ to ₹30.5 Cr, despite a YoY decline. Asset quality showed slight improvement, with GNPA at 4.61% and NNPA at 1.41%. Overall collection efficiency stood strong at 93.3%.

Strategic product diversification into Individual Loans (AUM of ₹460.3 Cr), Micro LAP, and Gold Loans is a key growth driver. Digital initiatives, like the Mahila Mitra app, now account for 24.8% of collections. The company is actively expanding into new geographies like Assam and focusing on acquiring low-risk clients. Notably, CRISIL upgraded its long-term outlook to 'Positive'.

Management projects AUM growth of 5-10% for FY26, with Net Interest Margin (NIM) improving to 12.4-12.7% and credit costs stabilizing, indicating an expectation of improved profitability.