Muthoot Microfin Q2 FY27 Results (NSE: MUTHOOTMF)
Signal: Earnings grew
The read
The trajectory is improving on both growth and quality: total income rose 26.9% YoY to ₹732.9 Cr, PPOP grew 67.4% to ₹249.4 Cr and PAT reached ₹110.8 Cr, while NIM expanded 50bps QoQ to 12.5%, GNPA fell 123bps YoY to 3.38% and the non-JLG portfolio reached 31% of GLP. The key inflection is diversification and funding improvement, with average borrowing cost entering single digits at 9.93%; uneven monsoons and macroeconomic conditions remain the principal disclosed risks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹732.9 Cr | 26.9% | 9.3% |
| EBIT | ₹249.4 Cr | 67.4% | |
| Net profit | ₹110.8 Cr | 262.9% | |
| EBIT margin | 0% |
P&L walk
Disclosed group-level results show total income of ₹732.9 Cr, +26.9% YoY and +9.3% QoQ, while PPOP grew 67.4% YoY to ₹249.4 Cr on better NIM and operating efficiency; PAT rose 262.9% YoY to ₹110.8 Cr as credit costs remained within guidance.
Key positives
- Total income reached ₹732.9 Cr, up 26.9% YoY and 9.3% QoQ, while GLP grew 22.0% YoY to ₹15,322.8 Cr.
- PPOP rose 67.4% YoY to ₹249.4 Cr as cost-to-income improved to 48.1% from 59.8% a year earlier.
- NIM expanded to 12.5%, up 57bps YoY and 50bps QoQ, while average cost of borrowing declined to 9.93%.
- Asset quality improved, with GNPA down 123bps YoY to 3.38%, NNPA down 36bps to 1.05% and collection efficiency up 477bps YoY to 98.1%.
- Portfolio diversification accelerated: non-JLG loans reached 31% of GLP, SME loans reached ₹4,164 Cr or 27% of GLP, and secured lending reached ₹653 Cr.
- Digital collections rose to 46.7% of total from 25% in Q2FY26, while CRAR remained strong at 25.5%.
Key concerns
- Borrower count declined 2.7% YoY to 32.7 lakh and branch count declined 2.5% to 1,675 even as GLP grew 22.0%, increasing the importance of productivity gains sustaining growth.
- Credit cost remains 2.6% and GNPA remains 3.38%, so portfolio quality is improving but still material for an NBFC-MFI.
- Management cited uneven monsoons and drought-like conditions as risks, with 3.6% of the on-book Karnataka and Maharashtra group-loan portfolio in affected districts.
- EPS was not disclosed, preventing a PAT-versus-per-share dilution check.
Research and educational content only. Not investment advice.