Muthoot Microfin Q4 FY26: AUM up 13%, costs fall

Key update at a glance

Muthoot Microfin Ltd. released operating updates for the quarter and fiscal year ended March 31, 2026, highlighting improving asset quality and a pickup in business momentum. The stock reaction was positive in parts of the trading session, with reports of gains after the company disclosed higher assets under management (AUM). At the same time, investors tracking quarterly performance faced mixed signals because multiple earnings dates and different Q3 result numbers are cited in the available text.

Earnings dates: what the data says

The dataset lists the last earnings date as Q3 FY25-26 on February 9, 2026. It also lists an upcoming earnings date as Q4 FY26-27 on May 6, 2026. Separately, the text also says Muthoot Microfin (NSE: MUTHOOTMF) is scheduled to declare Q4 FY26 (January to March 2026) results on May 10, 2026, and repeats May 10 as the results date.

Because both May 6 and May 10 are explicitly mentioned, readers should treat the schedule as unclear based on the provided information alone and verify the final exchange filing or company notice.

Q3 performance snapshot from the provided figures

One set of Q3 figures in the text shows:

• Revenue: Rs 602 crore (QoQ +4.59%, YoY -11.45%)
• Gross profit: Rs 288 crore (QoQ +16.59%, YoY +19.32%)
• Net profit: Rs 62 crore (QoQ +104.59%, YoY +1,543.16%)

The text also separately cites another Q3 FY26 snapshot as revenue of Rs 473 crore and PAT of Rs 19 crore. Both sets are present in the input, and no reconciliation is provided.

Q4 FY26 and FY26: business update highlights

In its business update posted on April 20, 2026, the company said it delivered AUM growth surpassing annual guidance. It attributed the improvement to a calibrated pickup in disbursements, with the monthly run-rate in Q4 scaling above pre-FY25 levels. It also flagged progressive improvement in asset quality through the year, with GNPA trending lower and collection efficiencies improving steadily.

The update also notes that credit costs moderated faster than anticipated at the start of the year, supporting improved profitability across quarters. While the input does not provide a full income statement for Q4 FY26, it gives multiple operating metrics that investors commonly track in microfinance.

AUM growth: FY26 vs FY25

AUM rose 13% year-on-year to Rs 14,006 crore as of March 31, 2026, compared with Rs 12,357 crore as of March 31, 2025. This is the central operating indicator highlighted alongside the stock move.

The business description in the text positions Muthoot Microfin as part of the Muthoot Pappachan Group (Muthoot Blue), providing microloans, including income-generating loans, primarily to women engaged in small businesses.

Disbursements: steady expansion

Disbursements increased 6% YoY to Rs 9,418 crore during FY 2025-26, compared with Rs 8,872 crore in FY 2024-25. The company linked AUM growth to this calibrated pickup, indicating a measured approach rather than an aggressive push, based on the words used in the update.

Collections and asset quality: measurable improvement

For Q4 FY26, collection efficiency was 96.43%, up 336 bps from 93.07% in Q4 FY25. The company also disclosed that X Bucket collection efficiency improved from 98.97% in Q4 FY25 to 99.82% in Q4 FY26, an increase of 85 bps.

On broader asset quality indicators, GNPA was 3.89% in FY26 versus 4.84% in FY25. Credit cost is listed as 3.5% in FY26 versus 9.4% in FY25, pointing to a sharp moderation compared with the previous year.

Funding and borrowing costs

The text states that borrowing cost declined 75 bps to 10.27% in Q4 FY26, compared with 11.02% in Q4 FY25. It also lists FY26 fund-raising details: Rs 3,290 crore through PTCs at an average cost of 9.1%, Rs 865 crore through secured, rated, listed NCDs, and Rs 133 crore via ECB, with the balance raised through other instruments.

Stock reaction: multiple prints across sessions

The stock was reported up 3.54% to Rs 178.55 following the AUM update. Separately, the shares were also reported to have gained 5.7% intraday, reaching Rs 182.3 on BSE.

Another market snapshot in the text shows the stock last trading at Rs 172.45 versus a previous close of Rs 176.70, with an intraday high of Rs 179.55 and low of Rs 172.00. These price points appear to refer to different moments or sessions, and the input does not provide a single consolidated close.

Key metrics table (as stated)

Dividend line item: incomplete in the source

The input states: “Muthoot Microfin Ltd. has declared a dividend of Rs undefined on --.” As presented, this is not a usable dividend disclosure and should be treated as missing or not updated in the source text.

What to watch next

With differing mentions of May 6, 2026 and May 10, 2026 for the next earnings event, the immediate next step is to confirm the actual results date via the company’s exchange filing. Investors will also watch whether the improvement in collections, credit costs, and borrowing costs translates into consistently stronger reported profitability.

Conclusion

The FY26 operating update points to stronger collections, lower credit costs, and reduced borrowing cost alongside double-digit AUM growth. The next confirmed earnings announcement should clarify quarterly financial performance and the sustainability of the improving asset-quality trend.