Muthoot Microfin Ltd

Q2 FY26Finance

Muthoot Microfin Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹211

Market cap₹3.9K Cr

P/E23.0

Updated23 Aug 2026

Read4 min read

The short version

Muthoot Microfin expects robust AUM growth, targeting around 10% overall growth, which they are confident to overachieve. Confident of achieving upper range of 2% ROA guidance in the coming year due to improved yield, lower credit cost, rationalized operating expenses, and reduced cost of funds.

From Muthoot Microfin Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Muthoot Microfin expects robust AUM growth, targeting around 10% overall growth, which they are confident to overachieve.
Disbursement growth is strong, with a 28% increase over the last quarter, expected to continue driving AUM expansion.
Diversification into Individual Loans, Micro LAP, and Gold Loan products to contribute positively, targeting 10-12% non-JLG portfolio share.
Expansion into new territories like Assam, Andhra, and Telangana through new branches.
Rationalization of underperforming branches planned to improve productivity and reduce costs, enhancing profitability.
Yield improvement is anticipated due to increased lending rates and optimized product mix, aiding higher revenue.
Better portfolio quality and credit cost reduction expected to support profitable growth.

2 more points management made on revenue & sales performance

Profitability & Margins

Confident of achieving upper range of 2% ROA guidance in the coming year due to improved yield, lower credit cost, rationalized operating expenses, and reduced cost of funds.
Expect to rationalize operating expenses to 6%–6.2%, supported by investment completion in Individual Loan product and branch profitability measures.
Anticipate improving net interest margins, from 11.5% to 11.9% and further upward.
Credit cost expected to reduce to 2.25%–2.5% in FY '27 from current higher levels.
Steady AUM growth targeted at around 10% overall, with a robust disbursement growth of 28% quarter-on-quarter.
Profitability momentum is strong, with Q2 profit at INR 30 crores compared to INR 6 crores in Q1, and PPOP up 7.6% QoQ.

2 more points management made on profitability & margins

See what Muthoot Microfin Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

No significant current capital investment is required to build the portfolio, except for the LAP portfolio which requires more time to build but stays longer on the book.
Gold Loan business is being built without additional infrastructure investment by leveraging partnership with Muthoot FinCorp under a business correspondent model.
Individual Loan business is managed with existing infrastructure; underwriting is centralized and automated, reducing incremental costs.
Branch rationalization is underway to improve productivity, merging or closing low-performing branches, expected to save about INR 50 crores annually.

2 more points management made on capital expenditure plans

Top-ranked in Finance

Ranked on what management guided this quarter

5x potential

1Mufin Green Finance Ltd₹2.6K Cr

Rev 1Mar 1

2Akiko₹454 Cr

Rev 1Mar 1

3₹972 Cr

Rev 1Mar 2

4₹358 Cr

Rev 1Mar 2

5₹1.5L Cr

Rev 1Mar 3

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

Muthoot Microfin raised around INR1,500 crores through PTC transactions with both public and private sector banks during the quarter.
The company has accessed term loans from private sector banks and direct assignment deals with banks like Bank of Maharashtra.
They successfully raised cheaper capital through the ECB (External Commercial Borrowings) route, with a recent ECB cost at around 9.8%.
Global rating done for listing an ECB on the INX exchange supports further capital raising through ECBs.
There is no liquidity challenge; sanctions of around INR3,500 crores and liquidity of INR1,000 crores on the balance sheet are available.
Credit rating upgrade from A+ stable to A+ positive supports cheaper borrowing and lender confidence.

2 more points management made on fundraising & capital structure

See what Muthoot Microfin Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided transcript from Muthoot Microfin Limited's Q2 FY '26 earnings call does not mention any details related to current or expected order book or pending orders. The discussion primarily focuses on: - Financial performance metrics like ROA, ROE, cost of funds, credit cost, and portfolio quality. - Product portfolios and ticket sizes in microfinance, Individual Loan, LAP and Gold Loan products. - Collection efficiency and asset quality improvements.

2 more points management made on order book & pipeline

What Muthoot Microfin Ltd's management said in earlier quarters

Others in Finance this season

Indian Renewable Energy Development Agency Ltd (Q2 FY26)
Revenue from operations for the quarter ended 30-Sep-2025 is Rs 2,057 crore, up 26% from Rs 1,630 crore in the quarter ended 30-Sep-2024. Key concall takeaways…
Authum Investment & Infrastructure Ltd (Q2 FY26)
629.1 Cr vs. Key concall takeaways from Authum Investment & Infrastructure Ltd's Q2 FY26 earnings call — and how it ranks against sector peers.
Sundaram Finance Ltd (Q2 FY26)
Q2FY26 Revenue from Operations: ₹1,547 crore, up from ₹1,729 crore in Q2FY25 (note: appears slightly lower but possibly an adjusted figure; overall trend shows…
CRISIL Ltd (Q2 FY26)
Research, Analytics & Solutions segment Q3 2025 income from operations: ₹643.6 crore, up 12.7% YoY from ₹571.2 crore in Q3 2024 (Page 19). Key concall…

Compare:vs Bajaj Finance Ltd vs Bajaj Finserv vs Shriram Finance Ltd

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Frequently Asked Questions

What were Muthoot Microfin Ltd Q2 FY26 results?

What is Muthoot Microfin Ltd share price analysis?

Muthoot Microfin Ltd currently shows a neutral. The stock trades at a P/E of 23.0 with a market cap of ₹3,924 Cr. Investors should review the full earnings analysis for detailed insights.

Is Muthoot Microfin Ltd planning capital expenditure?

No significant current capital investment is required to build the portfolio, except for the LAP portfolio which requires more time to build but stays longer on the book.

Keep Muthoot Microfin Ltd on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.