Muthoot Microfin reported its AUM hit Rs 15,323 crore in the second quarter of FY27, with collection efficiency climbing to 98.11%. The company said, "This is the first time the figure has moved into single digits," referring to its cost of funds. Many customers now use digital channels for payments.
AUM grew 23.9% on an annualised basis from June 30, 2026. Disbursements in the second quarter of FY27 were Rs 2,900 crore, the company said. That is 28% higher than in the same quarter last year and 10% higher than in the first quarter.
Loan portfolio mix
The company said the share of joint liability group loans in its portfolio fell to 69%. It was 83% on March 31, 2026. Non-JLG loans now make up the remaining 31%.
Within that segment, the Small and Micro Enterprise Individual Loan portfolio rose to Rs 4,164 crore. The company said delinquency in this book remains near zero. Gold loans also featured in the quarter. Under a referral and co-lending arrangement, gold loans worth Rs 453 crore were disbursed with the parent, Muthoot Fincorp. The company described this as a step towards strengthening its secured lending portfolio.
Collections and asset quality improve
Collection efficiency was 98.11% in the quarter. That is 477 basis points higher than in the second quarter of FY26. The company also reported an X-bucket collection efficiency of 99.9%, excluding advances.
Cost of funds falls below 10%
Muthoot Microfin raised Rs 3,213 crore in the quarter. Borrowings for the half year totalled Rs 5,946 crore. As of September 30, the company held liquidity of Rs 1,701 crore. It also had sanctioned but unavailed credit lines of Rs 4,328 crore.
The cost of funds fell to 9.93% from 10.13% in the previous quarter, a drop of 20 basis points. The company said this is the first time the figure has moved into single digits. The incremental cost of funds was 9.69%, against 9.80% in the first quarter, an improvement of 11 basis points.
Branches, customers and digital growth
The company operated 1,675 branches and served 32 lakh active customers at the end of September. It said it continued to build its presence in existing and recently entered markets, including Telangana, Andhra Pradesh and Assam. The branch network is also being used to sell a wider set of products.
Cumulative downloads of its Mahila Mitra app reached 22 lakh. Digital collections accounted for 47% of the total in the second quarter, up from 25% a year earlier. The company said this indicates a wider use of digital payment channels.
About Muthoot Microfin
Muthoot Microfin is the microfinance arm of the Muthoot Pappachan Group and is listed on the BSE and NSE. It is a non-banking financial company registered as a microfinance institution. The company lends mainly to women entrepreneurs in rural India. It follows the joint liability group model, which is aimed at women in lower-income households. Its parent, Muthoot Fincorp Limited, is part of the same group. The company's administrative office is in Kochi, and its registered office is in Mumbai.
Muthoot Microfin share price today
Muthoot Microfin's share price is up 0.2% as of early trade on October 8. The company's share price decreased by 14.19% in the past month. However, Muthoot Microfin's share price increased 3.19% in the past year.