Muthoot Microfin
Muthoot Microfin
Financial ServicesKey Fundamentals
MicrocapMicrofinanceFinancial ServicesTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
1- Stock is trading at 1.17 times its book value
Weaknesses
2- Company has low interest coverage ratio.
- Company has a low return on equity of 5.19% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 69d agoMuthoot Microfin (market cap ₹3,768 Cr, P/E 22.1x, P/B 1.32x) has swung from a net loss of ₹223 Cr in FY25 to a net profit of ₹170 Cr in FY26, driven by lower credit costs (3.5% in FY26 vs 9.4% in FY25) and improving asset quality (GNPA down 95 bps to 3.89%). However, total income declined 8% TTM and 3-year average ROE remains low at ~5%, reflecting the sector stress the company is still recovering from.
- Turnaround from ₹223 Cr net loss in FY25 to ₹170 Cr net profit in FY26, demonstrating operational recovery
- GNPA improved 95 bps from 4.84% in Q4 FY25 to 3.89% in Q4 FY26, with net NPA at 1.2%
- Credit cost declined sharply from 9.4% in FY25 to 3.5% in FY26, reducing earnings drag
- AUM grew 13% YoY in FY26 when the broader microfinance industry shrank 20%, indicating relative outperformance
- Management upgraded FY27 growth guidance to 20% from earlier 12-15% range, signaling confidence in credit cycle recovery
- Compounded 5-year sales CAGR of 28% reflects strong medium-term franchise growth despite recent TTM dip
- Diversification plan targets reducing group micro loan share to 60% by 2030 and entering two-wheeler financing, with AUM target of ₹30,000 Cr
- Stock trades at P/B of 1.32x, below historical levels for profitable NBFCs, reflecting the FY25 loss year in valuations
- TTM revenue declined 8% (total income fell from ₹2,564 Cr in FY25 to ₹2,381 Cr in FY26), signaling top-line pressure
- 3-year average ROE of only 5.18% is well below the cost of equity for a leveraged NBFC-MFI
- Low interest coverage ratio flagged as a structural concern given the company's leveraged balance sheet
- GNPA at 3.89% remains elevated compared to 2.3% in March 2024, indicating asset quality is still normalizing
- Zero dividend payout historically — no capital return to shareholders despite periods of profitability
- FY26 EPS of ₹10.16 remains far below FY24's ₹30.20, showing earnings are still well below peak levels
- NIM compressed from 17.57% in FY25 to 15.03% in FY26, reflecting competitive and regulatory pressure on yields
- Microfinance sector faces ongoing regulatory scrutiny and borrower over-leverage risks that could trigger fresh stress cycles
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 69d ago- Crisil upgrades rating to AA- Jun 11
Crisil upgraded Muthoot Microfin's long-term credit rating to AA-/Stable from A+/Positive. Cost of funds declined from 11% in FY25 to 10.3% in Q4 FY26, with incremental cost at 9.9%.
- Growth guidance raised to 20% Jun 10
Co-CEO revised growth forecast upward to 20% from earlier 12-15% guidance, signaling improved business confidence for the microfinance lender.
- ₹4,000 crore NCD issuance approved Jun 30
Board approved raising ₹4,000 crore via Non-Convertible Debentures in FY27 to diversify funding sources. Hannah Muthoot also appointed as Additional Director.
- Investor meets in Mumbai Jun 29
Company scheduled 1x1 or group investor meetings in Mumbai on June 22 and July 2, 2026. No unpublished price sensitive information to be shared.
- AGM scheduling on agenda Jun 23
Board meeting on June 30 also addressed scheduling the company's Annual General Meeting alongside the NCD approval.
TL;DR: Muthoot Microfin is in a strong position with a credit rating upgrade to AA- enabling cheaper funding, cost of funds already down to 10.3%, and growth guidance raised to 20%. The ₹4,000 crore NCD plan supports its Vision 2030 target of ₹30,000 crore AUM. No material headwinds emerged in recent news, though the broader microfinance sector's challenging operating environment remains a background risk. The trend is clearly improving with rating upgrades, lower borrowing costs, and higher growth confidence.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 479 | 564 | 577 | 643 | 663 | 662 | 681 | 555 | 559 | 576 | 603 | 632 | 669 |
| Expenses | 150 | 189 | 208 | 227 | 273 | 334 | 428 | 845 | 333 | 318 | 304 | 300 | 306 |
| Financing Profit | 135 | 153 | 137 | 185 | 156 | 91 | 15 | -512 | 16 | 47 | 77 | 101 | 116 |
| Fin. Margin % | 28% | 27% | 24% | 29% | 24% | 14% | 2% | -92% | 3% | 8% | 13% | 16% | 17% |
| Other Income | 1 | 2 | 2 | 2 | 0 | 1 | 1 | 1 | 0 | 1 | 3 | 7 | 2 |
| Interest | 194 | 221 | 232 | 231 | 234 | 237 | 237 | 222 | 210 | 211 | 222 | 232 | 247 |
| Depreciation | 8 | 9 | 9 | 10 | 10 | 11 | 11 | 11 | 11 | 11 | 10 | 11 | 11 |
| PBT | 128 | 147 | 130 | 177 | 147 | 81 | 5 | -522 | 6 | 37 | 69 | 97 | 107 |
| Tax % | 25% | 25% | 4% | 32% | 23% | 24% | 25% | -23% | -7% | 18% | 10% | 27% | 24% |
| Net Profit | 96 | 110 | 125 | 120 | 113 | 62 | 4 | -401 | 6 | 31 | 62 | 71 | 81 |
| EPS in Rs | 8.19 | 9.38 | 7.31 | 7.02 | 6.64 | 3.61 | 0.22 | -23.53 | 0.36 | 1.79 | 3.66 | 4.17 | 4.77 |
| Gross NPA % | 2.75% | — | — | — | — | — | 3.03% | 4.84% | 4.85% | 4.61% | 4.4% | 3.89% | — |
| Net NPA % | 0.51% | — | — | — | — | — | 0.34% | 1.34% | 1.58% | 1.41% | 1.34% | 1.14% | — |
Profit & Loss
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 748 | 860 | 684 | 833 | 1,429 | 2,249 | 2,563 | 2,375 | 2,480 |
| Expenses | 243 | 543 | 369 | 417 | 658 | 772 | 1,880 | 1,254 | 1,228 |
| Financing Profit | 271 | 27 | 16 | 75 | 222 | 611 | -248 | 247 | 340 |
| Fin. Margin % | 36% | 3% | 2% | 9% | 16% | 27% | -10% | 10% | 14% |
| Other Income | 2 | 6 | 12 | 10 | 17 | 6 | 2 | 5 | 13 |
| Interest | 234 | 291 | 299 | 340 | 549 | 866 | 930 | 874 | 911 |
| Depreciation | 3 | 14 | 19 | 21 | 27 | 35 | 43 | 43 | 43 |
| PBT | 271 | 20 | 9 | 65 | 213 | 582 | -289 | 209 | 310 |
| Tax % | 26% | 8% | 22% | 27% | 23% | 23% | -23% | 18% | — |
| Net Profit | 201 | 18 | 7 | 47 | 164 | 450 | -223 | 170 | 245 |
| EPS in Rs | 17.63 | 1.59 | 0.62 | 4.15 | 14.03 | 26.37 | -13.05 | 9.99 | 14.39 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 114 | 114 | 114 | 114 | 117 | 167 | 168 | 168 |
| Reserves | 772 | 793 | 776 | 1,203 | 1,486 | 2,637 | 2,465 | 2,687 |
| Borrowing | 2,451 | 2,997 | 3,094 | 4,107 | 6,646 | 8,589 | 8,101 | 9,707 |
| Other Liabilities | 193 | 187 | 200 | 167 | 280 | 197 | 123 | 123 |
| Total Liabilities | 3,530 | 4,092 | 4,184 | 5,591 | 8,529 | 11,590 | 10,857 | 12,685 |
| Fixed Assets | 21 | 109 | 110 | 121 | 172 | 215 | 223 | 199 |
| CWIP | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 0 | 0 | 0 | 0 | 63 | 47 | 354 | 406 |
| Other Assets | 3,509 | 3,983 | 4,074 | 5,470 | 8,294 | 11,329 | 10,280 | 12,080 |
| Total Assets | 3,530 | 4,092 | 4,184 | 5,591 | 8,529 | 11,590 | 10,857 | 12,685 |
Cash Flow
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Operating | -602 | 114 | -704 | -1,084 | -2,333 | -1,272 | 1,382 | -580 |
| Investing | -6 | -66 | -38 | -74 | -180 | -225 | -128 | -41 |
| Financing | 707 | 463 | 80 | 1,344 | 2,567 | 1,671 | -1,485 | 626 |
| Net Cash Flow | 99 | 511 | -662 | 187 | 54 | 174 | -230 | 4 |
| Free Cash Flow | -613 | 91 | -712 | -1,095 | -2,361 | -1,299 | 1,361 | -591 |
| CFO/OP | -105 | 49 | -222 | -248 | -298 | -78 | 219 | -52 |
Ratios
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| ROE % | 23% | 2% | 1% | 4% | 11% | 20% | -8% | 6% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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50 extracted metrics + investor summaries across FY19–FY27.
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Company Information
Founded in April 1992, Muthoot Microfin Limited, a subsidiary of Muthoot Pappachan Group, provides micro-loans to female customers with a focus on rural regions in India[1]
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