Muthoot Microfin Limited reported assets under management (AUM) of ₹15,323 crore as of September 30, 2026, marking a 22% year-on-year increase. The microfinance lender posted broad-based operational gains in the second quarter of FY27, with disbursements reaching ₹2,900 crore, up 28% from the same quarter last year and 10% sequentially, according to thehindubusinessline.com.
During Q2 FY27, Muthoot Microfin's cost of funds fell to 9.93%, entering single-digit territory for the first time, down 20 basis points from 10.13% in Q1 FY27. The incremental cost of funds further improved to 9.69%. Collection efficiency strengthened to 98.11%, a 477 basis point improvement over Q2 FY26, while X-Bucket collection efficiency excluding advances stood at 99.9%. The company also reduced reliance on joint liability group loans, shifting the JLG-to-non-JLG mix to 69:31 from 83:17 in March 2026.
The lender's small and micro enterprise individual loan book grew to ₹4,164 crore. It disbursed ₹453 crore in gold loans through a co-lending arrangement with parent Muthoot Fincorp Limited. As of September 30, Muthoot Microfin operated 1,675 branches serving 3.2 million active customers. Digital collections rose to 47% of total collections from 25% a year earlier. The company raised ₹3,213 crore in Q2, with available liquidity and sanctioned credit lines totaling ₹6,029 crore.
The figures reported are provisional and unaudited as of September 30, 2026. The company’s operational metrics and financial health indicate strong growth momentum in the microfinance sector for FY27, as per thehindubusinessline.com.