Muthoot Microfin Q3FY26 PAT Soars 104.6% QoQ to ₹62.4 Cr; AUM Crosses ₹13,078 Cr
Muthoot Microfin reported Q3 FY26 PAT of ₹62.4 Cr, up 104.6% QoQ. AUM reached ₹13,078.6 Cr, up 5.4% YoY. GNPA improved to 4.40% and NNPA to 1.34%. Disbursements grew 22.5% YoY to ₹2,492.2 Cr. The company raised ₹2,753.9 Cr during the quarter.
The substantial profit growth, AUM crossing a key milestone, and improvement in asset quality are material positive developments for the company, likely to be viewed favorably by investors.
The company reported significant year-on-year and quarter-on-quarter growth in profit, AUM, and disbursements, along with improvements in asset quality and a reduction in credit costs. Management commentary also reflects a positive outlook.
Muthoot Microfin Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company reported a Profit After Tax (PAT) of ₹62.4 crore for Q3 FY26, marking a significant growth of 104.6% compared to the previous quarter. This performance was driven by a strengthening growth momentum, with Assets Under Management (AUM) reaching ₹13,078.6 crore, a 5.4% increase year-on-year.
The company also saw improvements in its asset quality, with Gross Non-Performing Assets (GNPA) declining to 4.40% and Net Non-Performing Assets (NNPA) reducing to 1.34%. The credit cost stood at 3.3%, which is well below the FY26 guidance of 4-6%.
Key business highlights for Q3 FY26 include a 5.4% YoY growth in Gross Loan Portfolio (GLP) to ₹13,078.6 crore. The loan mix saw an improvement in the Joint Liability Group (JLG) and Non-JLG segments. Disbursements grew by 22.5% YoY to ₹2,492.2 crore. The company also raised ₹450 crore through NCDs and $15 million in ECB, totaling ₹2,753.9 crore raised during the quarter.
Financially, total income stood at ₹605.4 crore, and Pre-Provisioning Operating Profit (PPOP) was ₹175.3 crore. The Net Interest Margin (NIM) remained healthy at 12.0%, up 11 basis points QoQ, with the cost of funds declining by 17 basis points QoQ to 10.43%. The company maintained a healthy Capital Adequacy Ratio of 26.4% with a Debt-Equity Ratio of 3.3x, and a Net-worth of ₹2,768 crore.
Mr. Thomas Muthoot, Chairman & Non-Executive Director, highlighted the sector's return to a sustainable growth path and the company's strong performance across key parameters, including crossing the ₹13,000 crore AUM mark and expanding the individual loan book. Mr. Sadaf Sayeed, CEO, emphasized the return of confidence in the sector, driven by improving asset quality and profitability, and acknowledged the awards received for Financial Inclusion and Responsible Finance.
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