Mumbai : Muthoot Microfin Ltd. (NSE: MUTHOOTMF | BSE: 544055), one of India’s leading listed NBFC-MFIs, reported a strong turnaround in its financial performance for the first quarter of FY27, driven by robust loan disbursements, improving asset quality, lower credit costs, and a diversified lending portfolio.
The company posted its highest-ever first-quarter disbursements of ₹2,645 crore, a 49% year-on-year increase, while its Gross Loan Portfolio (GLP) expanded 18% YoY to ₹14,457 crore, reflecting sustained business momentum.
Financial performance strengthened significantly during the quarter. Total income increased 20% YoY to ₹670.6 crore, while Pre-Provision Operating Profit (PPOP) rose 43.3% to ₹198.5 crore. Profit After Tax (PAT) jumped nearly 12 times year-on-year to ₹81.3 crore, supported by improving operating efficiency and lower provisioning.
Asset quality also improved, with Gross NPA declining to 3.70% and Net NPA reducing to 1.05%. Credit cost moderated to 2.6%, remaining below the company’s guided range for FY27, while collection efficiency improved to 97.97%, reflecting strengthening repayment trends.
The company continued to diversify its portfolio, with the Non-JLG segment contributing 24% of the overall loan book. During the quarter, Muthoot Microfin also commenced gold loan disbursements under its co-lending partnership with Muthoot Fincorp, marking its entry into secured lending.
Further strengthening investor confidence, CRISIL upgraded Muthoot Microfin’s long-term credit rating to AA-/Stable while reaffirming its A1+ commercial paper rating. The company also maintained a healthy liquidity position and improved its capital adequacy ratio to 24.9%.
Commenting on the results, Chairman Thomas Muthoot said FY27 marks an important transition year for the company as it focuses on building a more diversified lending franchise and progressing towards its Vision 30-30, targeting ₹30,000 crore AUM and over 20% Return on Equity by FY30. CEO Sadaf Sayeed highlighted that the company’s focus remains on balanced growth, stronger portfolio quality, and expanding secured lending opportunities.