Muthoot Microfin posts record disbursements, PAT jumps 3.6x in Q2 FY27

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The results reflect improving asset quality, a rising share of non-JLG lending, a single-digit borrowing cost, and a record digital collections share

By BL Mumbai Bureau

Updated - November 05, 2026 at 08:11 PM.

Muthoot Microfin Ltd reported its strongest quarterly performance in Q2 FY27, with profit after tax (PAT) surging to ₹110.8 crore, a 263 per cent jump y-o-yr, as the Keralam-based microfinance lender crossed the ₹100-crore quarterly profit mark for the first time.

The NBFC-MFI posted record quarterly disbursements of ₹2,900 crore, up 27.5 per cent , while its Gross loan portfolio grew 22 per cent to ₹15,323 crore as of September 30.

Total income rose 26.9 per cent to ₹732.9 crore. Net Interest Margins (NIM)improved 50 basis points quarter-on-quarter to 12.5 per cent, and the cost-to-income ratio fell sharply to 48.1 per cent from 53.7 per cent in Q1. Pre-provision operating profit climbed 67.4 per cent y-o-y to ₹249.4 crore.

Asset quality

Asset quality continued to recover. Gross NPA declined to 3.38 per cent, an improvement of 123 basis points y-o-y, while credit costs held at 2.6 per cent, within the company's guided range of 2.5–3 per cent.

A notable shift in portfolio composition saw non-JLG (Joint Liability Group) loans expand to 31 per cent of GLP, ahead of the company's own year-end target of 30 per cent. The Small and Micro Enterprise Loan portfolio reached ₹4,164 crore with near-zero delinquency, and gold loans via a co-lending tie-up with Muthoot Fincorp added ₹453 crore in disbursements during the quarter.

The average cost of borrowing fell to 9.93 per cent, entering single-digit territory for the first time, supported by a CRISIL upgrade to AA-/Stable and CareEdge Global revising its outlook to Positive.

Digital collections reached 47 per cent of total collections, up from 25 per cent a year earlier. The company serves 32.7 lakh active customers across 1,675 branches in 21 states.

Capital adequacy stood at 25.5 per cent, and the company held liquidity of ₹1,835 crore with ₹4,442 crore in unavailed credit lines.

Published on November 5, 2026

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