Muthoot Microfin Soars 15% on Strong Q1 Numbers

Muthoot Microfin shares jumped 15% on Friday, hitting a fresh 52-week high after a strong Q1 business update from the company.

The rally followed strong performance numbers the company released late Thursday. Muthoot Microfin’s loan book, or assets under management, grew 18% year on year to Rs 14,457 crore, a sign of how fast the lending business is expanding.

That’s also 3% higher than where the book stood at the end of March. Disbursements, the fresh loans handed out during the quarter, jumped 49% year on year to Rs 2,645 crore.

The company also began gold loan disbursements through a tie-up with its parent, Muthoot Fincorp, lending out Rs 192.86 crore in this first quarter of the arrangement.

Asset quality improved too. Collection efficiency, which tracks how well borrowers are repaying on time, rose to 97.97% for the quarter, up from 93% a year earlier.

This comes on the back of a recent credit rating upgrade from CRISIL, which pointed to the company’s stronger credit profile. The lender is also reshaping its loan mix, moving away from group loans towards individual borrowers.

The split between joint liability group loans and individual loans improved to 76:24 from 83:17 in the previous quarter, while its individual loan portfolio for small businesses grew to Rs 3,214 crore.

As of 30 June, Muthoot Microfin operated 1,671 branches and served 33 lakh active customers, having expanded into new markets including Telangana, Andhra Pradesh and Assam during the quarter.

The company has reaffirmed its long-term goal of growing its loan book to Rs 30,000 crore by 2030, alongside targets to lift returns and shift more collections online.

At 14:15 pm, shares of Muthoot Microfin were trading at Rs 236.40, up 12.42% for the day, with the stock now up around 30% so far in 2026. Despite today’s gains, it still trades below its IPO issue price of Rs 291.

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