Muthoot Microfin Reports 12-Fold Jump in Q1 Profit
Mumbai, Aug. 6 (TNT): Muthoot Microfin Ltd on Thursday reported a 12-fold year-on-year increase in net profit to Rs. 81.3 crore for the first quarter ended June 30, 2026, driven by strong loan disbursements, improved asset quality and higher operating income.
In a release, the non-banking finance company (NBFC-MFI) said its gross loan portfolio grew 18 per cent year-on-year to Rs. 14,457 crore, while quarterly disbursements rose 49 per cent to a record Rs. 2,645 crore, the highest first-quarter disbursement in the company’s history.
The company’s non-JLG portfolio expanded to 24 per cent of the overall portfolio during the quarter.
It also commenced gold loan disbursements under its co-lending partnership with Muthoot Fincorp Ltd.
Total income increased 20 per cent year-on-year to Rs. 670.6 crore, while pre-provision operating profit rose 43.3 per cent to Rs. 198.5 crore. Net interest margin remained stable at 12 per cent.
Asset quality improved during the quarter, with gross non-performing assets (GNPA) declining to 3.70 per cent and net NPA to 1.05 per cent.
Credit cost also moderated to 2.6 per cent, below the company’s guided range of 2.7-3 per cent.
During the quarter, CRISIL upgraded the company’s long-term credit rating to AA-/Stable from A+/Positive, while reaffirming the A1+ rating for its commercial paper.
Commenting on the performance, Chairman Thomas Muthoot said the company was steadily transforming into a diversified lending franchise, while CEO Sadaf Sayeed said the strong quarterly performance was supported by growth in the non-JLG portfolio, improved collections and strengthening asset quality.
TNT KS
