Muthoot Microfin swings to ₹71 crore profit in Q4 from ₹401 crore loss as bad loans fall

Muthoot Microfin reported a sharp turnaround in the March quarter, posting a net profit of ₹71.1 crore compared with a loss of ₹401.1 crore a year ago, aided by stronger loan growth and improving asset quality, according to an exchange filing.

Net interest income rose 20.1% year-on-year to ₹400.3 crore, reflecting steady expansion in the loan book and improved operating traction.

The company’s assets under management (AUM) crossed ₹14,006 crore, up 13.3% YoY, supported by a strong pickup in lending activity. Disbursements surged 46.8% YoY to ₹2,876.7 crore, and were up 15.4% sequentially, indicating sustained demand across segments.

Asset quality metrics also improved meaningfully during the quarter. Gross non-performing assets (GNPA) declined by 95 basis points to 3.89%, while net NPA eased to 1.14%, down 20 basis points from a year earlier, the company said in the filing.

Operationally, Muthoot Microfin continued to rationalise its footprint, consolidating 25 branches during the quarter and 91 over FY26, taking its total network to 1,670 branches. The employee base stood at 15,735.

Management highlighted improving sector dynamics, with better collection efficiencies and a shift towards more diversified and higher-ticket lending. The company said it is increasingly focusing on business-oriented and secured loan products, which are contributing to improved portfolio quality and resilience.

The lender added that it remains well-positioned to sustain growth, backed by a stronger balance sheet, disciplined underwriting, and favourable trends in the microfinance and MSME lending ecosystem.

Shares of Muthoot Microfin ended higher on Wednesday, May 6, by 4.19% at ₹214.40 on the NSE.

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