Muthoot Microfin Limited has informed the Exchange about Transcript
MUTHOOTMF · price
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Muthoot Microfin reported a modest Q1 FY26 profit of INR6.2 crores (pre-OCI), marking an early turnaround after a difficult FY25. The company disbursed 3.11 lakh loans worth INR1,775 crores, with AUM at INR12,252 crores and borrower base of 34.1 lakh. NIM improved to 11.5% from 10.9% in Q4, driven by a 23 bps reduction in cost of funds to 10.79% and revised lending rates (weighted avg ~23.5%). Management introduced three new products — Micro LAP, gold loan (via co-lending with parent Muthoot FinCorp), and individual MSME loans — to diversify beyond core microfinance. Credit cost was at the lower end of guidance at 4.3%, with GNPA stable at 4.5% and a robust Stage 3 provision cover of 68.5%. Disbursements are picking up sharply, from INR630 crores to INR727 crores in July, expected to touch INR1,000 crores per month by September. Liquidity is comfortable at over INR2,000 crores and a major INR500 crore PTC deal with SBI was recently concluded.
Positive signal for shareholders — management guided confidence in outperforming FY26 guidance on growth, credit cost, and margin expansion, supported by improving collections, product diversification, and cheaper funding. Expect the stock to react favourably as the turnaround narrative strengthens.