Muthoot Microfin Limited announced its audited financial results for the financial year ended March 31, 2026, reporting a strong turnaround in performance. The company's Gross Loan Portfolio (GLP) grew 13.3% YoY and 7.1% QoQ to Rs. 14,005.6 crore. Profit After Tax (PAT) for the full year stood at Rs. 170.3 crore, a significant improvement compared to a loss of Rs. 222.5 crore in the previous year; including OCI, PAT improved to Rs. 213.6 crore. The Board approved the results at a meeting held on May 06, 2026, and statutory auditors M/s. Suresh Surana & Associates LLP issued an unmodified opinion on the audited financial results, as confirmed under Regulation 33(3)(d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Alongside the results, the company filed its Investor Presentation for the quarter and year ended March 31, 2026, pursuant to Regulation 30 of the Listing Regulations. Subsequently, on May 07, 2026, Muthoot Microfin published newspaper advertisements pertaining to the audited financial results for the quarter and year ended March 31, 2026, in pursuance of Regulation 30, Regulation 47, Regulation 52(8), and other applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was submitted by Chief Compliance Officer and Company Secretary Neethu Ajay.

Business and Operational Highlights

The company demonstrated strong operational momentum during FY26. Disbursements for Q4 FY26 stood at Rs. 2,876.7 crore, registering growth of 46.8% YoY and 15.4% QoQ. The non-JLG portfolio expanded to 17.5% of the total portfolio. The branch network stood at 1,670 with an employee strength of 15,735, following the consolidation of 25 branches during the quarter and 91 for FY26. Digital adoption remained robust, with 33.9% of collections through digital channels compared to 27.8% in Q3 FY26, and 100% of disbursements executed digitally. Customer App installations touched the 2.0 million mark. CARE Ratings upgraded the company's ESG Rating to 80.8 (CareEdge-ESG 1+) from 72.2 (CareEdge-ESG 1).

Key Financial Performance – FY26 vs FY25

The following table summarises the key financial metrics for FY26 compared to FY25:

Key Financial Performance – Q4 FY26

For the quarter ended March 31, 2026, Net Interest Income (NII) stood at Rs. 369.0 crore, growing 14.90% YoY against Rs. 321.1 crore in Q4 FY25 and 2.8% QoQ against Rs. 358.8 crore in Q3 FY26. Revenue for Q4 FY26 stood at Rs. 6.38 billion compared to Rs. 5.5 billion in Q4 FY25. Net profit for Q4 FY26 stood at Rs. 711 million compared to a loss of Rs. 4 billion in Q4 FY25. Pre-Provisioning Operating Profit (PPOP) increased 48.0% YoY to Rs. 192.8 crore, while Profit After Tax (PAT) stood at Rs. 71.1 crore compared to a loss of Rs. 401.2 crore in Q4 FY25. Net Interest Margin (NIM) remained at 12.0%, with cost of funds declining by 75 bps to 10.27%. During the quarter, the company raised Rs. 2,451 crore.

Asset Quality and Liquidity

Asset quality improved significantly during FY26. GNPA declined by 95 bps YoY from 4.84% in Q4 FY25 to 3.89% in Q4 FY26. Net NPA reduced by 20 bps YoY to 1.14%. Credit cost for the full year reduced from 9.4% to 3.5%, and for Q4 FY26 it reduced to 2.8%. X-bucket collection efficiency strengthened to 99.82%. As of Q4 FY26, Stage 1 loan assets stood at Rs. 1,01,039.3 lakhs with an ECL of Rs. 953.6 lakhs (ECL rate: 0.94%), Stage 2 at Rs. 2,936.3 lakhs with ECL of Rs. 255.4 lakhs (ECL rate: 8.70%), and Stage 3 at Rs. 4,209.2 lakhs with ECL of Rs. 3,011.1 lakhs (ECL rate: 71.53%). Total loan assets stood at Rs. 1,08,184.8 lakhs with a total ECL of Rs. 4,220.1 lakhs. The company maintained a strong liquidity position with Rs. 882 crore in liquid funds and HQLA–GSec investments, Rs. 1,728 crore in DA/PTC sanctions, and Rs. 1,427 crore in unutilised term funding sanctions. Capital adequacy stood at 23.9%.

ECL Movement Summary

The following table presents the ECL movement for FY26 across quarters (figures in lakhs):

Management Commentary

Mr. Thomas Muthoot, Chairman & Non-Executive Director, noted that the operating environment showed clear and broad-based improvement, with collection trends strengthening across geographies and borrower segments. He highlighted a visible industry shift from high-velocity, unsecured group lending towards more diversified, higher-ticket and cashflow-backed products, leading to improving asset quality metrics and better system stability. He added that Muthoot Microfin's AUM grew by approximately 13% year-on-year to Rs. 14,005.6 crore, supported by a strong pickup in disbursements, which increased by 47% year-on-year and 15% sequentially, with GNPA declining by 95 basis points year-on-year to 3.89%.

Mr. Sadaf Sayeed, CEO, stated that the strong Q4 FY26 performance was underpinned by healthy growth in the loan portfolio, improved profitability, and continued strengthening of asset quality. He noted that GLP growth of over 13% YoY, coupled with a sharp expansion in PPOP and stable margins, reflects the resilience of the business model and disciplined execution. He further highlighted that the continued focus on diversification, with the non-JLG portfolio gaining traction, along with strong digital adoption, positions the company well for sustainable growth.

FY27 Guidance

The investor presentation disclosed the company's guidance for FY27 across key operating and financial parameters:

Credit Ratings

The company's credit ratings as disclosed in the investor presentation are as follows:

Corporate Developments

The Board noted the resignation of Mr. Akshaya Prasad as Non-Executive Director, effective May 6, 2026. The agenda item relating to the issuance of Non-Convertible Debentures was deferred. During FY26, the company issued secured non-convertible debentures amounting to Rs. 8,650 million. The declaration under Regulation 33(3)(d) was submitted by Executive Director Thomas Muthoot John (DIN: 07557585) on May 06, 2026, confirming the unmodified audit opinion on the company's audited financial results for the year ended March 31, 2026.

Muthoot Microfin Limited has notified the stock exchanges of the completion of tenure by M/s. Ernst & Young LLP as its Co-source Internal Auditors. The disclosure, dated May 06, 2026, was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Completion of Co-Source Internal Audit Tenure

M/s. Ernst & Young LLP served as Co-source Internal Auditors of Muthoot Microfin for a period of two years. Their tenure spanned FY 2024–25 and FY 2025–26, concluding upon the natural completion of the stipulated term. The company has formally intimated the exchanges of this development as part of its mandatory disclosure obligations under applicable SEBI regulations.

The key details of the change in Co-source Internal Auditor, as disclosed in the annexure to the regulatory filing, are summarised below:

Regulatory Compliance

The filing was submitted by Neethu Ajay, Chief Compliance Officer and Company Secretary of Muthoot Microfin Limited, on May 06, 2026. The disclosure forms part of the company's ongoing compliance with SEBI's listing obligations, ensuring timely and transparent communication of material developments to the exchanges and investors.