Muthoot Microfin AUM rises 13% to ₹14,006 cr in FY26; Q4 collection efficiency improves

The third largest microlender, Muthoot Microfin Ltd, on Monday (April 20), reported a 13% year-on-year rise in assets under management (AUM) to ₹14,006 crore as of March 31, 2026, compared with ₹12,357 crore a year earlier, according to its key business update for Q4 and FY26.

Disbursements for FY26 increased 6% year-on-year to ₹9,418 crore from ₹8,872 crore in FY25. The company also reported improved collection efficiency, which stood at 96.43% in Q4FY26 versus 93.07% in Q4FY25.

The company said FY26 saw a return to normalised business momentum with performance improving year-on-year and trending ahead of initial guidance across key parameters. It added that the microfinance operating environment showed progressive stabilisation during the year, despite transient disruptions in select states, such as Bihar, linked to legislative developments.

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AUM growth was supported by a calibrated rise in disbursements, with Q4 monthly run-rate scaling above pre-FY25 levels. The company’s diversification into individual loans, micro-LAP, and gold loans remained on track, with increasing contribution from non-JLG products and entry into secured lending. The JLG and non-JLG mix improved from 97:3 in March 2025 to 83:17 in March 2026. The small and micro enterprise individual loan portfolio grew to ₹2,387 crore with near-zero delinquency.

The branch network stood at 1,670 as of March 31, 2026, compared with 1,699 a year earlier, following the consolidation of 91 branches. The company expanded into Assam and increased its presence in Telangana and Andhra. Active customers stood at 33 lakh. Asset quality improved, with gross non-performing assets (GNPA) at 3.89% in FY26 versus 4.84% in FY25. Credit cost declined to 3.5% from 9.4%.

Funding strengthened during the year, with total borrowings at ₹9,537 crore versus ₹7,375 crore in FY25. This included ₹3,290 crore through PTCs at 9.1% average cost, ₹865 crore via secured listed NCDs, and ₹133 crore through ECBs. Borrowing cost declined to 10.27% in Q4FY26 from 11.02% in Q4FY25.

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Shares of Muthoot Microfin Ltd ended at ₹173.25, up by ₹3.45, or 1.95%, on the BSE today, April 20.