{"id":1917,"date":"2026-05-18T14:58:48","date_gmt":"2026-05-18T09:28:48","guid":{"rendered":"https:\/\/www.bullscreen.in\/news\/?p=1917"},"modified":"2026-05-18T14:58:50","modified_gmt":"2026-05-18T09:28:50","slug":"muthoot-microfin-q4-results-2026-profit-jumps-asset-quality-improves","status":"publish","type":"post","link":"https:\/\/www.bullscreen.in\/news\/muthoot-microfin-q4-results-2026-profit-jumps-asset-quality-improves\/","title":{"rendered":"Muthoot Microfin Q4 Results 2026: Profit Jumps 118% Despite Revenue Dip, Asset Quality Improves"},"content":{"rendered":"\n

Muthoot Microfin Limited<\/a> reported a sharp rise in profitability in its Q4 results 2026, driven by lower borrowing costs, improving asset quality, and a strategic shift toward secured business lending.<\/p>\n\n\n\n

The company posted a net profit after tax (PAT) of \u20b9711 million in Q4 FY26, up 117.7% year-on-year, while full-year PAT surged 176.5% to \u20b91,703 million. However, total income for FY26 declined 7.2% YoY to \u20b923,807 million, reflecting a softer lending environment across the microfinance sector.<\/p>\n\n\n\n

Muthoot Microfin\u2019s net interest margin improved to 12% in Q4 FY26, expanding 104 basis points from a year ago. The company also strengthened operating efficiency, with its cost-to-income ratio falling sharply to 53.2% from higher levels last year. The opex ratio eased to 6.4%.<\/p>\n\n\n\n

In the Q4 results 2026 update, the lender highlighted strong growth in assets under management (AUM), which rose 13.3% YoY to \u20b9140,056 million. Quarterly disbursements climbed 46.8% to \u20b928,767 million, indicating improving credit demand.<\/p>\n\n\n\n

The company is gradually reducing dependence on traditional joint liability group (JLG) microfinance loans and expanding into MSME and secured lending products. Secured business loan balances jumped 256%, while average ticket size increased 28% to \u20b974,079.<\/p>\n\n\n\n

Asset quality also improved during the quarter. Gross NPA declined to 3.89% from 4.84% a year earlier, while net NPA improved to 1.14%. Credit cost reduced to 2.8%, supported by stronger collections and wider adoption of digital repayment mandates.<\/p>\n\n\n\n

Muthoot Microfin maintained a strong capital adequacy ratio of 23.9% and reduced its borrowing cost by 75 basis points to 10.27% in FY26. The company said its Vision 2030 strategy aims to diversify the portfolio further, with MSME and secured loans expected to become the dominant segment over the coming years.<\/p>\n\n\n\n

<\/i><\/span>Muthoot Microfin Q4 Results 2026 \u2013 Key Financial Highlights <\/h2>
<\/div><\/div>\n\n\n\n
Metric<\/th>FY26 \/ Q4 FY26 Data<\/th>YoY Change<\/th><\/tr><\/thead>
Total Income<\/td>\u20b923,807 Million<\/td>\u25bc 7.2%<\/td><\/tr>
Net Profit (PAT) FY26<\/td>\u20b91,703 Million<\/td>\u25b2 176.5%<\/td><\/tr>
Q4 FY26 PAT<\/td>\u20b9711 Million<\/td>\u25b2 117.7%<\/td><\/tr>
Net Interest Margin (NIM)<\/td>12.0%<\/td>\u25b2 104 bps<\/td><\/tr>
Cost-to-Income Ratio<\/td>53.2%<\/td>\u25bc 842 bps<\/td><\/tr>
Opex Ratio<\/td>6.4%<\/td>\u25bc 25 bps<\/td><\/tr>
Return on Assets (ROA)<\/td>2.1%<\/td>Strong Expansion<\/td><\/tr>
Return on Equity (ROE)<\/td>10.1%<\/td>Sharp Recovery<\/td><\/tr>
Capital Adequacy Ratio (CAR)<\/td>23.9%<\/td>Strong Capital Base<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/i><\/span>Business Growth & Operational Metrics <\/h2>
<\/div><\/div>\n\n\n\n
Metric<\/th>FY26 Performance<\/th>Trend<\/th><\/tr><\/thead>
Assets Under Management (AUM)<\/td>\u20b9140,056 Million<\/td>\u25b2 13.3%<\/td><\/tr>
Q4 Disbursements<\/td>\u20b928,767 Million<\/td>\u25b2 46.8%<\/td><\/tr>
Total Borrowings<\/td>\u20b995,374 Million<\/td>Record High<\/td><\/tr>
Cost of Borrowing<\/td>10.27%<\/td>\u25bc 75 bps<\/td><\/tr>
Customer Retention<\/td>95%<\/td>Stable<\/td><\/tr>
Average Ticket Size<\/td>\u20b974,079<\/td>\u25b2 28%<\/td><\/tr>
Secured Business Loan Growth<\/td>\u20b99,315 Million<\/td>\u25b2 256%<\/td><\/tr>
Branch Network<\/td>1,670 Branches<\/td>Optimized Network<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/i><\/span>Asset Quality & Risk Management Snapshot <\/h2>
<\/div><\/div>\n\n\n\n
Metric<\/th>Q4 FY26 Data<\/th>Improvement<\/th><\/tr><\/thead>
Gross NPA (GNPA)<\/td>3.89%<\/td>Improved from 4.84%<\/td><\/tr>
Net NPA (NNPA)<\/td>1.14%<\/td>Improved from 1.34%<\/td><\/tr>
Credit Cost<\/td>2.8%<\/td>Lower YoY<\/td><\/tr>
Provision Coverage Ratio (PCR)<\/td>71.5%<\/td>Healthy Coverage<\/td><\/tr>
Digital Collections Mix<\/td>33.9%<\/td>Increased Adoption<\/td><\/tr>
Collection Efficiency (MSEL)<\/td>100%<\/td>Best-in-Class<\/td><\/tr>
NACH Recovery by T+3<\/td>99.9%<\/td>Strong Recovery Rate<\/td><\/tr>
Covenant Breaches<\/td>Zero<\/td>Strong Balance Sheet Discipline<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: https:\/\/www.bseindia.com\/xml-data\/corpfiling\/AttachHis\/b5f8ab02-b0b3-4a5a-ab99-eea59512017a.pdf<\/a><\/em><\/p>\n\n\n\n

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Muthoot Microfin Limited reported a sharp rise in profitability in its Q4 results 2026, driven…<\/p>\n","protected":false},"author":2,"featured_media":1918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[364,264],"class_list":["post-1917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financials","tag-muthootmf","tag-q4-results-2026"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts\/1917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/comments?post=1917"}],"version-history":[{"count":1,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts\/1917\/revisions"}],"predecessor-version":[{"id":1919,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts\/1917\/revisions\/1919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/media\/1918"}],"wp:attachment":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/media?parent=1917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/categories?post=1917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/tags?post=1917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}