Muthoot Microfin Q1 FY27: Transcript of Investor Call Released
Muthoot Microfin's Q1 FY27 investor call transcript reveals ₹2,644 crore disbursements, up 49% YoY. Asset quality improved with 97.97% collections. Cost of funds dropped to 10.13%. Growth guidance revised to 20% for FY27. Focus products: individual loans, JLG, and gold loans.
The announcement details strong financial results, revised growth guidance, and strategic initiatives that are likely to have a significant impact on the company's future performance and investor perception.
The company reported strong financial performance with significant year-on-year growth in disbursements, improved asset quality, reduced cost of funds, and a positive outlook with revised growth guidance. New product launches and strategic initiatives also contribute to the positive sentiment.
Muthoot Microfin Limited has released the transcript of its investor conference call held on August 07, 2026, to discuss the unaudited financial results for the quarter ended June 30, 2026.
During the call, the management highlighted a strong performance in Q1 FY27, with disbursements reaching ₹2,644 crores, a 49% increase compared to the same quarter last year. The company reported an overall collection rate of 97.97% and an X-Bucket of 99.9%. The asset quality showed significant improvement, with 65% of the book comprising disbursements made after April 2025, exhibiting a 30-plus delinquency of only 1.2% and minimal 90-plus delinquency.
Strategic diversification efforts are yielding results, with 76% of assets being JLG loans and 24% non-JLG loans. The individual loan portfolio, standing at ₹3,200 crores, demonstrated minimal delinquency. The company is focusing on customers with a credit score of 700-plus, aiming to be their top priority lender.
Muthoot Microfin is expanding its product offerings, with an upcoming consumer durable loan approved by the board. The company has substantial liquidity with ₹5,000 crores in sanctions, excluding a ₹1,000 crores credit guarantee scheme. The cost of funds has decreased to 10.13% from 10.27%, with further reductions expected due to a recent AA- CRISIL rating upgrade and the potential utilization of the credit guarantee scheme.
The company has revised its growth guidance to 20% for the fiscal year, driven by strong momentum, the upcoming festive season, available liquidity, and ground-level demand. The PPOP improved by 43% year-on-year, and operating costs reduced to 6.3%. Credit cost also improved to 2.6%, below the guided range.
In terms of gold loans, the referral business has seen significant traction, with ₹100 crores disbursed monthly since April 2026, totaling ₹360 crores in Q1. The company aims to build a gold loan portfolio of ₹500 crores. The direct assignment (DA) quantum for the quarter was ₹355 crores.
The company's AUM growth was 18% year-on-year, and it aims to maintain a 55-45 AUM mix between MFI and non-MFI businesses in the long term, with a balance sheet mix of 60-40. Top focus products for credit growth over the next 2-3 years are individual loans, JLG loans, and gold loans.
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