Muthoot Microfin Rebounds to Profit with Enhanced Asset Quality in Q4 FY26

Muthoot Microfin posted a profit of Rs 71.1 crore for the March quarter of FY26, reversing a previous loss. This achievement was driven by increased net interest income and better asset quality. Asset quality improvements include reductions in non-performing assets, signaling a strong performance and healthier financial standing.

Muthoot Microfin, a notable player in the Indian microfinance sector, has reported a significant turnaround in its financial performance for the fourth quarter of fiscal year 2026. The company shared a profit of Rs 71.1 crore, a stark reversal from the Rs 401.2 crore loss registered in the same quarter last year.

This marked improvement comes on the back of a 15 percent rise in net interest income, which climbed to Rs 369 crore—a compared up from Rs 321 crore year-on-year. Additionally, Muthoot Microfin's asset quality showed marked improvement, with gross non-performing assets dropping by 95 basis points to 3.89 percent.

The CEO, Sadaf Sayeed, expressed satisfaction with the company's performance, citing healthy loan portfolio growth and stronger asset management. For the entire fiscal year, the company reported a net profit of Rs 170.3 crore, with an asset under management increase of 13.3 percent to Rs 14,005.6 crore.