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Thu, 27 Aug 2026
06:50:26 am
Thu, 27 Aug 2026
06:50:26 am
Rudransh Sangwan
Published at: July 13, 2026, 2:42 AM
Synopsis
Muthoot Microfin reports 18% YoY growth in AUM to ₹14,457 crore in Q1 FY27, records 49% rise in disbursements, receives CRISIL AA- rating upgrade, and unveils Vision 2030 targeting ₹30,000 crore AUM.
Muthoot Microfin Limited reported strong operational momentum in the first quarter of FY27, with Assets Under Management (AUM) rising 18% year-on-year to ₹14,457 crore. Higher disbursements, improving collection efficiency, portfolio diversification, and the launch of secured lending products supported growth during the quarter. The company also received a CRISIL credit rating upgrade and unveiled its ambitious Vision 2030 strategy, targeting ₹30,000 crore AUM by FY30.
Muthoot Microfin continued its growth trajectory during the quarter ended June 30, 2026, reporting an Assets Under Management (AUM) of ₹14,457 crore, representing an 18% increase compared to the same quarter last year and a 3% sequential rise. The growth was driven by healthy loan demand, expansion beyond traditional microfinance lending, and the addition of secured lending products to its portfolio.
The company also maintained strong operational performance with improving recovery metrics and enhanced funding access, positioning itself for sustainable long-term growth.
| Particulars | Q1 FY27 |
|---|---|
| Assets Under Management (AUM) | ₹14,457 crore |
| Year-on-Year Growth | 18% |
| Quarter-on-Quarter Growth | 3% |
| Active Customers | 33 lakh |
| Branch Network | 1,671 branches |
Loan disbursements during the quarter increased sharply to ₹2,645 crore, registering a 49% year-on-year growth. The performance was supported by continued demand across rural markets and the company's strategy of diversifying beyond Joint Liability Group (JLG) lending.
A major contributor during the quarter was the commencement of gold loan disbursements through a co-lending arrangement with Muthoot Fincorp Limited, which contributed nearly ₹193 crore during the quarter. The initiative marks the company's expansion into secured lending while broadening its customer offerings.
| Particulars | Q1 FY27 |
|---|---|
| Total Disbursements | ₹2,645 crore |
| YoY Growth | 49% |
| Gold Loan Co-Lending Contribution | ₹192.86 crore |
| Lending Partner | Muthoot Fincorp Limited |
Asset quality indicators continued to strengthen during the quarter. Overall collection efficiency improved to 97.97%, reflecting an increase of 497 basis points compared to the same period last year.
The company also maintained exceptionally strong recovery performance in its X-Bucket portfolio, with collection efficiency reaching 99.89%, indicating stable borrower repayment behaviour despite continued expansion.
Meanwhile, the Small and Micro Enterprise Individual Loan portfolio expanded steadily while maintaining minimal delinquency levels.
| Metric | Q1 FY27 |
|---|---|
| Collection Efficiency | 97.97% |
| Improvement YoY | +497 bps |
| X-Bucket Collection Efficiency | 99.89% |
| SME Individual Loan Portfolio | ₹3,214 crore |
| Delinquency | Near Zero |
Muthoot Microfin continued reducing its dependence on traditional Joint Liability Group (JLG) lending by increasing the share of non-JLG products.
The JLG to Non-JLG portfolio mix improved to 76:24, compared to 83:17 in the previous quarter, highlighting the company's strategy of building a more diversified and balanced lending portfolio. This diversification is expected to reduce concentration risks while supporting long-term earnings stability.
| Portfolio Mix | June 2026 | Previous Quarter |
|---|---|---|
| Joint Liability Group (JLG) | 76% | 83% |
| Non-JLG Portfolio | 24% | 17% |
| SME Individual Loan Book | ₹3,214 crore | Growing |
The company maintained a comfortable liquidity profile during the quarter. Cash and liquidity stood at ₹1,310 crore, while unutilised sanctioned credit lines amounted to ₹3,485 crore, providing ample resources to support future loan growth.
In addition, the company successfully raised ₹2,664 crore during the quarter, further strengthening its funding profile.
The improved funding profile received another boost after CRISIL upgraded Muthoot Microfin's long-term credit rating from CRISIL A+/Positive to CRISIL AA-/Stable, while reaffirming its CRISIL A1+ rating for commercial paper. The upgrade is expected to improve access to capital at more competitive borrowing costs.
| Particulars | Value |
|---|---|
| Liquidity | ₹1,310 crore |
| Unutilised Credit Lines | ₹3,485 crore |
| Funds Raised During Quarter | ₹2,664 crore |
| Long-Term Rating | CRISIL AA-/Stable |
| Commercial Paper Rating | CRISIL A1+ |
During its inaugural Capital Markets Day, Muthoot Microfin introduced its long-term Vision 2030 strategy, outlining ambitious financial and operational targets over the next four years.
The company plans to nearly double its AUM to ₹30,000 crore while significantly increasing the contribution of secured and individual lending products. It also aims to improve profitability and digital adoption across its customer base.
Management has targeted a Return on Assets (RoA) exceeding 5%, Return on Equity (RoE) above 20%, and increasing digital collections to 75% by FY30.
| Target | FY30 Goal |
|---|---|
| Assets Under Management | ₹30,000 crore |
| JLG Portfolio | 53.4% |
| Non-JLG Portfolio | 46.6% |
| Return on Assets | Above 5% |
| Return on Equity | Above 20% |
| Digital Collections | 75% |
The company's digital initiatives continued gaining traction during the quarter. Downloads of its Mahila Mitra mobile application crossed 2.09 million, while digital collections increased substantially.
Digital collections accounted for 40% of total collections during Q1 FY27, compared with 23% in the corresponding quarter last year and 34% in the previous quarter, reflecting improving customer adoption of digital payment channels.
| Metric | Q1 FY27 |
|---|---|
| Mahila Mitra App Downloads | 2.09 million |
| Digital Collections | 40% |
| Digital Collections (Q1 FY26) | 23% |
| Digital Collections (Q4 FY26) | 34% |
Muthoot Microfin entered FY27 with improving asset quality, robust loan growth, stronger funding access, and a steadily diversifying loan portfolio. The CRISIL rating upgrade, expansion into secured lending through gold loan co-lending, and increasing digital adoption provide additional growth drivers for the company.
With its Vision 2030 roadmap targeting ₹30,000 crore AUM and improved profitability metrics, the lender is positioning itself for sustained long-term expansion while reducing dependence on traditional microfinance lending.
The company reported Assets Under Management of ₹14,457 crore, registering 18% year-on-year growth.
Loan disbursements increased 49% year-on-year to ₹2,645 crore during the quarter.
CRISIL upgraded the company's long-term rating from CRISIL A+/Positive to CRISIL AA-/Stable, while reaffirming its A1+ commercial paper rating.
Muthoot Microfin aims to achieve ₹30,000 crore AUM, RoA above 5%, RoE above 20%, and 75% digital collections by FY30.
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