Muthoot Microfin returns to profit with INR6.2cr Q1

Muthoot Microfin reported a profit of INR6.2 crores for Q1 FY26, marking a turnaround after a challenging FY25. Disbursements totaled INR1,775 crores, a 9.4% decline from Q4 but showing improving monthly trends.

Credit cost fell to 4.3% from 9.4% in the previous financial year. Net interest margins improved to 11.5% from 10.9% in Q4, with cost of funds decreasing to 10.79%.

The company launched new product lines including Micro LAP and gold loans as part of strategic diversification efforts.