Muthoot Microfin posted strong Q1 FY27 results.

Assets Under Management (AUM) grew 18% YoY to 14,457.2 Cr, with disbursements up 48.9% YoY to 2,644.5 Cr.

Profit After Tax (PAT) surged 12x YoY to 81.3 Cr.

Asset quality improved, reflected in Gross Non-Performing Assets (GNPA) at 3.70% and Net Non-Performing Assets (NNPA) at 1.05%. The company is strategically diversifying its portfolio into Muthoot Small Enterprise Loan (MSEL) and secured loans, with MSEL AUM now over 3,200 Cr.

Digital initiatives are crucial, contributing 40.5% to MSEL/MSME collections and enabling new digital loan products like Suvidha.

Muthoot Microfin's credit rating was upgraded to AA-/Stable, and it was recognized as a 'Best Workplace in Microfinance'. Q1 FY27 highlights: AUM 14,457.2 Cr, PAT 81.3 Cr, Net Interest Margin (NIM) 12.0%, Return on Assets (ROA) 2.3%, Return on Equity (ROE) 11.2%, Credit Cost 2.6%, GNPA 3.70%, NNPA 1.05%. Management expressed confidence, revising FY27 guidance upwards for AUM growth (18-20%), ROA (2.5-3.3%), and ROE (12-18%), anticipating improving NIMs and stable credit costs.