Muthoot Microfin Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross Loan Portfolio (AUM) reached ₹144,572 Mn in Q1 FY27, showing growth of 3.2% QoQ and 18.0% YoY.
  • Client base declined by -0.6% QoQ and -4.7% YoY, reflecting a strategic pivot toward quality-led growth.
  • Q1 FY27 recorded 48.9% YoY growth in disbursements despite flat sourcing.
  • Rural AUM penetration remained stable at 97.3% in Q1 FY27.
  • Crossed 1000 Female Ros (Repayment Obligation Schedules) - a landmark achievement.
  • Key drivers: Stronger borrower selection, portfolio diversification across MSEL and MSME, enhanced conversion efficiency, and optimizing average ticket sizes.

Segment-wise Performance

  • Muthoot Small Enterprise Loan (MSEL) portfolio expanded 35% QoQ.
  • South region maintains position as anchor market, contributing 63% of individual loan portfolio and 49% of overall AUM.
  • Portfolio remains well diversified across regions with deeper market penetration in South.

Financial Highlights

  • Total Income: ₹6,706.1 Mn in Q1 FY27, showing 19.95% growth YoY
  • Finance Costs: ₹2,467.4 Mn in Q1 FY27, showing 17.63% growth YoY
  • Employee Benefit Expenses: ₹1,616.6 Mn in Q1 FY27, showing 6.19% growth YoY
  • Impairment on Financial Instruments: ₹918.5 Mn in Q1 FY27, showing -26.74% change YoY
  • Profit Before Tax: ₹1,066.0 Mn in Q1 FY27
  • Profit After Tax: ₹813.4 Mn in Q1 FY27
  • Net Interest Margin (NIM): 12.00% in Q1 FY27
  • Credit Cost: 2.60% in Q1 FY27 (lowest in 8 quarters)
  • Return on Assets (RoA): 2.30% in Q1 FY27
  • Return on Equity (RoE): 11.30% in Q1 FY27
  • Drivers: Quality-led growth, portfolio diversification, improved collection efficiency

Asset Quality Metrics

  • Gross NPA (GNPA): 3.70% (lowest in 6 quarters)
  • Net NPA (NNPA): 1.05% (lowest in 6 quarters)
  • Overall Provision Coverage: 3.7% on total assets
  • Stage 3 Provision Coverage: 72.4%
  • Total Provision: ₹4,084.31 Mn
  • IRAAC Provision: ₹1,975.3 Mn
  • ECL Difference: ₹2,109.0 Mn
  • 30+ PAR: 4.67% (declined from 4.70%)

Geographical Revenue Split

  • Regional concentration: South (63% of individual loan portfolio, 49% of overall AUM)
  • District exposure diversification: Top 1 district = 3% of GLP, Top 3 = 8%, Top 5 = 11%, Top 10 = 19%, Other = 81%

Balance Sheet Snapshot

  • Total Assets: ₹132,630.9 Mn as of June 30, 2026
  • Loans: ₹105,831.6 Mn
  • Cash and Cash Equivalents: ₹11,745.0 Mn
  • Bank Balances: ₹4,594.3 Mn
  • Total Borrowings: ₹90,309.2 Mn (excluding debt securities)
  • Debt Securities: ₹10,201.8 Mn
  • Total Financial Liabilities: ₹102,917.1 Mn
  • Equity Share Capital: ₹1,677.7 Mn
  • Other Equity: ₹27,715.6 Mn
  • Net Worth: ₹29,393.3 Mn
  • Debt to Equity: Calculated at approximately 3.42x
  • Financial Health: Strong capital position with CRAR compliance

Collection Efficiency & Digital Transformation

  • Overall Collection Efficiency (CE): 59% (X Bucket)
  • Digital Collection Share: 26.9% in Q1 FY27
  • Channel-wise digital collection: Dynamic-QR, BBPS, NACH, Others
  • NACH bounce recoveries largely completed by T+3 and fully by T+8
  • Mandate Success rate with on-time payment: 13% in Q1 FY27
  • App Installation represents cumulative count of customers who downloaded and registered "Mahila Mitra" app

Strategic & Digital Initiatives

  • Forayed into Individual loans, Gold loans and Micro-LAP
  • Secured e-KYC Licence to conduct Aadhaar enabled e-KYC for customer onboarding
  • Started operations in Assam
  • Continuously enhancing system capabilities through technological integrations to increase efficiency, reduce costs, and mitigate risks
  • Digital Eco-System development

Management Commentary & Growth Outlook

FY27 Guidance:

  • AUM Growth: Revised upward to 18-20% from 12-15%
  • NIM: Maintained at 12.3-12.5%
  • Operating Cost: Revised to 6.1-6.4% from 6.2-6.4%
  • Credit Cost: Revised to 2.5-3.0% from 2.7-3.0%
  • RoA: Revised to 2.5-3.3% from 2.5-3.0%
  • RoE: Revised to 12-18% from 12-15%

Strategic Outlook: Growth expected to improve with portfolio growth and NIM improvement. Credit cost stabilized and expected to improve YoY. Opex to rationalize on improvement in productivity.

Awards & Recognition (2025-2026)

  • Won TransUnion CIBIL Best Data Quality Award - Microfinance Institutions Segment
  • Won Best Financial Inclusion Initiative at NBFCs Tomorrow Conclave and DNA Awards 2025
  • Honoured with SKOCH Gold for ESG Excellence
  • Won Top Performing Microfinance Institutions Award at Water.org and SaDhan Awards 2025
  • Muthoot Microfin recognised among India's Best Workplaces in Microfinance 2026
  • ET NOW - Best Organisations for Women 2025
  • Achieved highest ESG Rating for an NBFC at 80.8 (CareEdge ESG +1)
  • Wins Sustainability excellence - Responsible Finance and ESG Leadership Award
  • Won Financial Inclusion Institution of the Year Award
  • 3-Time Winner - India's Best Workplaces in Health & Wellness 2024
  • Muthoot Microfin ranked among top 50 India's Best Workplaces in BFSI 2026