Muthoot Microfin Limited has issued a postal ballot notice dated February 12, 2026, seeking shareholder approval for a significant debenture issuance. The company is proposing to raise ₹2000 crores through private placement of debentures, marking a substantial expansion of its fundraising capacity.

Debenture Issuance Details

The postal ballot seeks approval for the issuance of secured/unsecured, listed/unlisted, rated/unrated non-convertible debentures including market linked debentures, perpetual debentures, and fixed maturity debentures. The proposed issuance will be conducted in one or more tranches or series through private placement.

E-Voting Process and Timeline

The company is conducting the approval process exclusively through remote e-voting, with no physical postal ballot forms being dispatched. The voting process has been structured with specific timelines to ensure proper shareholder participation.

Current Borrowing Position

The company has provided detailed information about its existing debenture issuance status. At the 33rd Annual General Meeting held on July 24, 2025, shareholders had approved NCDs worth ₹1000 crores for private placement and ₹500 crores for public issue. From the private placement limit, the company has already raised ₹998 crores, leaving a balance of ₹2 crores available for further issuance.

Regulatory Compliance and Documentation

The postal ballot notice has been prepared in compliance with various regulatory requirements including:

• Section 110 of the Companies Act, 2013
• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Companies (Management and Administration) Rules, 2014
• Various MCA circulars regarding electronic voting processes

The company has appointed CS Puzhankara Sivakumar, Practicing Company Secretary from SEP& Associates, Cochin, as the scrutinizer for conducting the postal ballot process. National Securities Depository Limited (NSDL) has been engaged to provide e-voting facilities to shareholders.

Purpose and Utilization

The funds raised through the debenture issuance will be utilized for augmenting resources for on-lending activities, repayment and refinancing of existing debt, working capital requirements, asset purchases, investments, and general corporate purposes. The specific terms including coupon rate, tenor, and pricing will be determined by the Board or its authorized committee based on prevailing market conditions at the time of each issuance.

Muthoot Microfin Ltd. has delivered exceptional financial performance in Q3FY26, marking a significant recovery with profit after tax surging 1543.97% year-on-year to ₹624.4 crore. The microfinance institution's strong quarterly results demonstrate improved operational efficiency and effective risk management strategies.

Financial Performance Highlights

The company's financial metrics showed substantial improvement across key parameters during Q3FY26:

The remarkable profit growth was primarily driven by significantly reduced impairment costs and improved cost management. Finance costs decreased by 6.52% YoY to ₹2,218.2 crore, while impairment on financial instruments dropped 35.33% YoY to ₹1,062.1 crore.

Asset Quality and Risk Management

Muthoot Microfin maintained stable asset quality metrics during the quarter, reflecting effective risk management practices:

The company's loan portfolio composition showed ₹90,026.03 crore in Stage 1 assets (91.84% of total), ₹3,681.56 crore in Stage 2 assets, and ₹4,312.46 crore in Stage 3 assets (4.40% of total).

Operational Metrics and Network Expansion

The microfinance institution's operational efficiency improved with enhanced productivity metrics:

Nine-Month Performance and Annual Guidance

For the nine-month period FY26, Muthoot Microfin achieved several key milestones against its annual guidance:

The company expects to achieve its growth targets with improved disbursements in H2 FY26, while NIM is projected to improve as cost of funds and yield optimize further.

Balance Sheet Strength

Muthoot Microfin's balance sheet demonstrated robust growth with total assets reaching ₹1,20,806.8 crore in 9M FY26 compared to ₹1,16,171.1 crore in 9M FY25. The loan portfolio stood at ₹93,590.2 crore, while total borrowings including debt securities reached ₹90,114.0 crore. The company maintained strong equity of ₹27,683.2 crore, providing adequate capital buffer for future growth initiatives.

Investor Conference Call Recording Available

Muthoot Microfin has made available the audio recording of its investor conference call discussing Q3FY26 financial results. The recording can be accessed on the company's website at the designated weblink, providing stakeholders with detailed insights into the quarterly performance and management commentary on future outlook.