Muthoot Microfin Limited — PPTs, 06-11-2025: Investor Presentation

Muthoot Microfin's Q2 FY26 saw AUM grow to ₹12,558.8 Cr (up 2.5% QoQ), with disbursements jumping 28.1% QoQ to ₹2,273.9 Cr, boosted by new individual loans. Asset quality improved, reflected in GNPA of 4.61% and NNPA of 1.41% (both down QoQ), supported by a 70.4% Provision Coverage Ratio. Significant natural calamity impact was 96% settled by insurance, demonstrating resilience.

The company is driving growth through product diversification into Individual Loans, Micro LAP, and Gold Loans. Digital collections now represent 24.8% of total, alongside 1.89 Mn app installs. Strategic branch and employee rationalization aim for efficiency. Muthoot Microfin expanded into Assam, secured e-KYC, and received a 'Positive' outlook upgrade from CRISIL (A+ rating reaffirmed).

Financially, Q2 FY26 total income was ₹577.4 Cr (up 3.3% QoQ). Profit after tax (PAT) surged 393.6% QoQ to ₹30.5 Cr. Net Interest Margin (NIM) stood at 11.9%, with ROE at 4.6% and ROA at 1.0% (strong QoQ improvements). Credit cost reduced to 3.6%. Management anticipates 5-10% AUM growth for FY26, with NIM, RoA, and RoE expected to improve from Q3.