Muthoot Microfin Limited has informed the Exchange about Transcript
MUTHOOTMF · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
AUM grew modestly by 1.3% YoY to INR 12,357 crores, with calibrated disbursements of INR 8,872 crores (down 16.8% YoY) as the company tightened lending amid industry stress. Net interest income rose 14.3% to INR 1,551 crores, but credit costs spiked to 9.4% (including INR 230 crores of management overlay), pushing the company to a full-year loss of INR 222 crores and a Q4 loss of INR 401 crores. Gross NPAs climbed to 4.84% from 3.03% in the prior quarter, driven by Karnataka disruption, while stage-2 and stage-3 provisions were raised significantly to 30.8% and 73.3% respectively. Management guided FY26 credit cost to 4-6% and AUM growth of 5-10%, with ROA target of 2% in FY26 rising to 4% in FY27, supported by diversification into secured products like gold loans, mortgages, and two-wheeler loans.
Near-term sentiment is likely negative given the first-ever annual loss and elevated provisions, but the forward guidance of normalizing credit costs and an ROA recovery to 4% by FY27 provides a constructive medium-term outlook. Investors should watch for collection efficiency trends in Karnataka and Tamil Nadu, and execution of the secured product diversification strategy.