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Muthoot Microfin reported a healthy Q1FY27 performance

ICICIdirect Research 07 Aug 2026 DISCLAIMER

News: Muthoot Microfin reported a healthy Q1FY27 performance, with AUM growing 18.0% YoY (3.2% QoQ) to ₹14,457 crore, supported by disbursements of ₹2,645 crore (48.9% YoY). NIM remained stable QoQ at 12.0% (50 bps YoY) while PAT increased 12x YoY (14.4% QoQ) to ₹81 crore. Asset quality strengthened further, with GNPA/NNPA improving to 3.70%/1.05%, while credit cost moderated to 2.6%, below the guided range of 2.7–3.0%. 

View: Continued improvement in asset quality, moderation in credit costs and healthy profitability reflect the success of the company's quality-led growth strategy. Portfolio diversification through expansion of the Non-JLG portfolio and diversification in asset mix is expected to improve portfolio resilience over the medium term, while the recent credit rating upgrade should support funding flexibility and growth. Sustaining collection efficiency, scaling newer lending segments and maintaining asset quality remain key monitorables.

Impact: Positive

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