Muthoot Microfin Sees Dramatic Profit Plunge Amidst Rising Bad Loans

Muthoot Microfin Ltd experienced a dramatic 95% decrease in net profit to Rs 6 crore for Q1 of 2025, primarily due to a surge in bad loans. This financial downturn contrasts with the Rs 113 crore profit from the previous year. The firm's income and expenses also showed negative shifts.

Muthoot Microfin Ltd has reported a significant downturn in its financial performance, with net profit plummeting by 95% to Rs 6 crore for the quarter ending in June 2025, primarily attributed to an increase in bad loans.

This is a stark contrast to the Rs 113 crore profit seen in the same quarter a year earlier. The company's total income witnessed a decline to Rs 559 crore from Rs 664 crore, while total expenses rose to Rs 553 crore compared to Rs 517 crore from the previous year.

The gross non-performing assets saw more than a twofold increase, reaching 4.85% from last year's 2.10%, indicating a significant rise in financial distress. Furthermore, the net NPA jumped to 1.58% compared to 0.71% in the prior fiscal's first quarter.