Muthoot Microfin files BRSR for FY26, targets 10 million households

Muthoot Microfin Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with BSE Limited and the National Stock Exchange of India Limited. The filing, submitted by Chief Compliance Officer and Company Secretary Neethu Ajay, outlines the company's adherence to the National Guidelines on Responsible Business Conduct (NGRBC) and details its environmental, social, and governance (ESG) performance. The report highlights the company's strategic focus on financial inclusion, aiming to reach and impact 10 million households by 2030.

The company reported a turnover of ₹ 23,80,69,65,621 and a net worth of ₹ 28,54,31,16,238 for the financial year. Its primary business activity, onward lending of microfinance loans, accounted for 93% of the total turnover. Operations are spread across 21 states with 1,670 offices, serving financially underserved women in rural and semi-rural India through Joint Liability Groups and individual loans.

Governance and Oversight

The Board of Directors established an ESG/Sustainability Committee on December 19, 2024, to strengthen governance of the ESG agenda. Mr. Thomas Muthoot serves as the Director responsible for implementation. The company confirmed that policies covering all nine NGRBC principles have been approved by the Board. An independent assessment by CareEdge Advisory evaluated the company's policy framework against BRSR requirements, resulting in an ESG score of 80.8 and a CareEdge-ESG 1+ rating.

Social Performance

The report details comprehensive measures for employee well-being, with 100% of permanent employees covered by health and accident insurance. The company recorded 368 employee grievances during the year, all of which were resolved. On the customer front, the company operates a three-tier grievance redressal mechanism, receiving 3,527 complaints in 2025-26, with 416 pending resolution at the end of the year. This was an improvement from the previous year, which saw 1,467 complaints and 38 pending resolutions.

Stakeholder Group	Complaints Filed (2025-26)	Pending Resolution (2025-26)	Complaints Filed (2024-25)	Pending Resolution (2024-25)
Communities	Nil	Nil	Nil	Nil
Investors	Nil	Nil	16	Nil
Shareholders	1	Nil	Nil	Nil
Employees	368	Nil	262	Nil
Customers	3,527	416	1,467	38

Environmental Initiatives

Muthoot Microfin reported several initiatives to reduce its environmental footprint, including upgrading solar-enabled branches from 48 to 56. The company reduced paper usage by 90% through digitisation and replaced older printers with energy-efficient inkjet models. Waste management data indicated a total waste generation of 10.70 metric tonnes for the year, comprising 0.76 metric tonnes of e-waste and 4.58 metric tonnes of battery waste, all processed through certified recyclers.

The company disclosed a monetary penalty of ₹ 40,08,000 paid to the Employees’ Provident Fund Organisation (EPFO) towards penal damages and interest under Sections 14B and 7Q of the EPF Act. No appeal was preferred against this order.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.73%	+15.06%	+25.78%	+30.09%	+45.87%	-7.74%

Muthoot Microfin Limited achieved a financial turnaround in the financial year ended March 31, 2026, recording a Profit After Tax (PAT) of ₹1,702.67 million against a loss of ₹2,225.23 million in the previous year. The company’s Assets Under Management (AUM) grew by 13% to ₹1,40,40,056 million, while its net worth increased by 8.44% to ₹28,543.12 million.

The company’s total income for the year stood at ₹23,806.97 million. The Capital Adequacy Ratio as of March 31, 2026, was 23.92%, comfortably above the mandated 15%. The Board of Directors has recommended a dividend of ₹340.53 million to the reserve out of the available profits.

Operational Performance

Muthoot Microfin continued to expand its reach, operating through a network of 1,670 branches across 21 states and union territories. The gross loan portfolio stood at ₹1,40,056.22 million as of March 31, 2026, compared to ₹1,23,567.18 million in the previous year. The company serves 3.27 million active customers.

Strategic Initiatives

During the year, the company focused on strengthening its risk management framework through the deployment of AI-led underwriting models and enhanced early-warning systems. It also advanced its diversification strategy by expanding into Individual Loans, Micro Loan Against Property (LAP), and Gold Loans. The JLG-to-non-JLG mix improved from 97:3 in March 2025 to 83:17 in March 2026.

Corporate Governance

The company has complied with all applicable laws, regulations, and guidelines issued by the Reserve Bank of India and SEBI. The Statutory Auditors, M/s. Suresh Surana & Associates LLP, provided an unmodified opinion on the financial statements. The Secretarial Audit Report also did not contain any qualifications.