Microfinance stock with a Market cap of ₹2,902 Cr in focus as AUM crosses ₹13,000 crore 

Synopsis: Muthoot Microfin, one of the leading microfinance banks, is in focus after achieving a significant AUM milestone of over Rs. 13,000 Crores, reflecting strong growth and robust performance in rural and semi-urban markets.

The shares of this micro-finance company majorly engaged in providing micro loans with presence in rural regions of India across financial services, automotive, hospitality, real estate, information technology and many more, were in focus after the company’s AUM crossed Rs 13,000 Crores.

With the market capitalisation of Rs. 2,902 Crores the shares of Muthoot microfin ltd were trading at around Rs. 169 per share which is 15 percent discount from its 52 weeks high of Rs. 199 per equity share and the stock has given negative returns of 3 percent from last 1 year. 

Muthoot Microfin reported its overall assets under management (AUM) has crossed ₹13,000 crore, with its individual loan book exceeding Rs.1,000 crore, reflecting strong portfolio growth. The company now serves 3.36 million active customers through 1,718 branches across 21 states and union territories, driven by disciplined underwriting, robust collections, and expanding operations in rural and semi-urban markets. Management highlighted balanced and responsible growth as it scales its loan book and strengthens risk and operational capabilities.

Muthoot Microfin is majorly engaged in providing micro loans with presence in rural regions of India across financial services, automotive, hospitality, real estate, information technology and many more. The company  has delivered steady and well-balanced growth over the years, with its AUM  expanding from ₹4,987 crore in FY21 to ₹12,357 crore in FY25 at a healthy 25% CAGR. Disbursements have picked up even faster, growing at a 35% CAGR, while the company has steadily widened its reach, increasing its borrower base from 1.86 million to 3.43 million.

 The loan portfolio is well diversified, with manufacturing accounting for 45.1%, trading 25.2%, services 15.2%, and agriculture & allied sectors 14.5%, helping reduce concentration risk. Asset quality remains healthy, supported by a strong 93.1% collection efficiency in FY26 

Year on Year analysis: Revenue from operations has decreased from Rs. 662 Crores to Rs. 576 Crores, down 13 percent. Operating income has decreased from Rs. 329 Crores to Rs. 258 Crores, down 21.5 percent and net profit has decreased from Rs. 62 Crores to Rs. 31 crores, down 50 percent. 

Quarter on Quarter analysis: Revenue from operations has increased on a quarterly basis from Rs. 559 Crores to Rs. 576 Crores, up 3 percent. Operating profit has increased from Rs. 226 Crores to Rs. 258 Crores, up 14 percent and net profit has increased from Rs. 6 Crores to Rs. 31 Crores, up 417 percent. 

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