Business
Muthoot Microfin Posts Healthy Revenue and Profit Recovery
Muthoot Microfin posted a profit of Rs 71.1 crore in the March quarter of FY26, recovering from a loss in the previous year amid stronger net interest income and better asset quality.
Muthoot Microfin on Wednesday reported a profit after tax of Rs 71.1 crore for the fourth quarter of FY26, marking a significant turnaround from the loss recorded during the same period last year.
The company had posted a net loss of Rs 401.2 crore in the January-March quarter of the previous financial year. The recovery was driven by growth in net interest income and improvements in asset quality, according to the company’s stock exchange filing.
Net interest income (NII) for the quarter increased 15 per cent year-on-year to Rs 369 crore, compared to Rs 321 crore in the corresponding quarter a year earlier.
The non-banking financial company-microfinance institution also reported strong growth in total income. Total income during the March quarter rose 14.9 per cent to Rs 638.9 crore from Rs 556.2 crore recorded in the same period last year.
The improved financial performance indicates stabilisation in the microfinance sector after a challenging period marked by elevated stress in loan portfolios and repayment pressures in parts of the industry.
Muthoot Microfin is part of the larger Muthoot Group and primarily focuses on providing microfinance services to women entrepreneurs and low-income households across India.
Industry experts believe improving asset quality and stable credit demand could support further growth for microfinance institutions in the coming quarters, provided economic conditions remain favourable.