Muthoot Microfin Reports Strong Q2 FY26 Growth, PAT Up 393.6% QoQ, Outlook Revised to Positive
Muthoot Microfin reported Q2 FY26 PAT of ₹30.5 crore (up 393.6% QoQ) and 28.1% disbursement growth. Asset quality improved, and CRISIL revised its outlook to 'Positive'. The company is diversifying into Gold and LAP products, with management anticipating sustained growth.
The announcement includes strong financial performance with substantial profit growth and improved asset quality, along with positive credit rating updates and strategic diversification into new product segments like Gold Loans and Micro-LAP. These factors are likely to have a significant positive impact on investor perception and the company's future growth prospects.
The company reported robust sequential growth in Profit After Tax, strong disbursement figures, and significant improvements in asset quality. The positive revision in credit outlook by CRISIL and management's optimistic commentary on sustained growth and successful diversification efforts contribute to a positive sentiment.
* Muthoot Microfin Limited announced its unaudited financial results for the quarter and half year ended September 30, 2025. * Q2 FY26 Highlights: * Profit After Tax (PAT) stood at ₹30.5 crore, marking a significant sequential growth of 393.6%. * Strong disbursement growth of 28.1% quarter-on-quarter (QoQ) to ₹2,273.9 crore. * Gross Loan Portfolio (GLP) increased by 2.5% QoQ to ₹12,558.8 crore. * Asset quality improved, with Gross NPA reducing to 4.61% from 4.85% in June 2025, and Net NPA at 1.41% from 1.58% in June 2025. * Cost of Funds (CoF) saw a sustained decline to 10.6% from 10.8% in Q1 FY26. * Capital Adequacy improved to 28.9%, up 106 basis points QoQ. * CRISIL revised its outlook on long-term facilities/NCDs from ‘Stable’ to ‘Positive’ while reaffirming the ratings at 'Crisil A+'. CareEdge Global assigned a ‘BB-/Stable’ rating to the company's dollar bonds. * The company commenced on-ground implementation of Gold loans and Micro-Lap products, with the Individual loan portfolio reaching ₹257.2 crore. * H1 FY26 Highlights: * Profit After Tax (PAT) for the half year stood at ₹36.7 crore. * Net Interest Income (NII) was ₹687.7 crore. * Management Commentary: * Mr. Thomas Muthoot, Chairman & Non-Executive Director, stated that the business is firmly back on track with healthy momentum across disbursements, profitability, and asset quality, expecting this momentum to strengthen. He highlighted product portfolio enhancement and diversification into Gold Loans, Loan Against Property, and Individual Loans, anticipating strong and sustained growth into FY27. * Mr. Sadaf Sayeed, CEO, noted that focused execution led to Q2 FY26 disbursements of ₹2,273.9 crore, driven by existing customers and newer geographies. He emphasized improved asset quality, reduced credit costs (3.6% well below the guided 4-6%), and 99.8% X-bucket collection efficiency. The outlook for the second half of the financial year remains positive, with Gold and LAP product launches expected to enhance book mix and support high-quality growth.
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Muthoot Microfin Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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