Muthoot Microfin Q1 FY27 Results (NSE: MUTHOOTMF)
Signal: Earnings grew
The read
The key inflection is simultaneous improvement in growth and credit quality: GLP reached ₹14,457.2 crore, up 18.0% YoY, disbursements rose 48.9% to ₹2,645 crore, credit cost fell 173bps YoY to 2.6%, GNPA declined 115bps to 3.70%, and PAT rose 12x to ₹81.34 crore. The portfolio is also diversifying as non-JLG reached 24% and gold-loan disbursements commenced, although borrowers declined 4.7% YoY to 32.5 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹668.64 Cr | 19.7% | 5.0% |
| EBIT | ₹353.34 Cr | 63.9% | N/A |
| Net profit | ₹81.34 Cr | 1216.2% | N/A |
| EPS | ₹4.85 | 1210.8% | N/A |
| EBIT margin | 0% |
P&L walk
Standalone total income rose to ₹670.61 crore, up 20.0% YoY and 5.0% QoQ; PPOP grew faster at ₹198.5 crore, up 43.3% YoY, while PAT reached ₹81.34 crore from ₹6.2 crore as credit cost fell 173bps YoY to 2.6% and asset quality improved.
Key positives
- GLP of ₹14,457.2 crore grew 18.0% YoY and disbursements of ₹2,645 crore grew 48.9% YoY, the highest-ever first-quarter disbursements.
- Credit cost fell 173bps YoY to 2.6%, below the guided 2.7%-3.0% full-year range, while GNPA improved 115bps YoY to 3.70% and NNPA improved 53bps to 1.05%.
- PPOP grew 43.3% YoY to ₹198.5 crore versus 20.0% total-income growth, alongside a 721bps YoY reduction in the cost/income ratio to 53.7%.
- Non-JLG loans reached 24% of the portfolio, digital collections rose to 40.5% from 23.1%, and gold-loan disbursements commenced through a co-lending partnership.
- CRISIL upgraded the long-term rating to AA-/Stable, while average cost of borrowing declined to 10.13% from 10.27% in FY26.
Key concerns
- Borrowers declined 4.7% YoY to 32.5 lakh even as GLP grew 18.0% YoY, implying portfolio growth is not yet translating into customer-count growth.
- GNPA remains elevated at 3.70% and NNPA at 1.05% despite sequential improvement, so the durability of the credit-cost recovery remains important.
- The diversification strategy is still early-stage: non-JLG contributes 24% of the portfolio and gold-loan disbursements only commenced during the quarter.
Research and educational content only. Not investment advice.