Muthoot Microfin posts strong Q2 FY26 growth, AUM up 2.5% QoQ

Muthoot Microfin Limited's investor presentation for Q2 FY26 reveals assets under management (AUM) of INR 1,25,588 Mn, marking a 2.5% quarter-on-quarter (QoQ) growth, with a 10% standalone contribution from Q2. Disbursements reached INR 22,739 Mn, a 28.1% QoQ increase, driven by new individual loans. The company expanded its reach, operating across 1,718 branches and serving 3.36 million active clients.

Muthoot Microfin reported a total income of INR 5,774 Mn in Q2 FY26, with profit after tax (PAT) at INR 305 Mn, a significant 393.6% QoQ growth. The net interest margin (NIM) stood at 11.9%, with a credit cost of 3.6%. The company maintained a strong provision coverage ratio (PCR) of 70.4% and an ROA of 1.0%, indicating robust asset quality and profitability.

The company's strategic realignment through product diversification is evident in its individual loan portfolio, which stands at INR 4,603 Mn AUM and INR 4,680 Mn in disbursements as of October 31, 2025. Digital collection efforts show 24.8% of total collections, emphasizing the company's focus on technology-driven efficiency. CRISIL upgraded Muthoot Microfin's long-term facilities/NCDs outlook to 'Positive,' reaffirming an A+ rating.