Muthoot Microfin Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Muthoot Microfin Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Muthoot Microfin reported Q1 FY27 disbursement of Rs 2,644 crore, its highest ever first-quarter figure, and management said collection efficiency reached around 98% with X-Bucket collection at 99.9%. The company reduced its cost of funds from 10.27% to 10.13% during the quarter and received a rating upgrade to AA- from CRISIL. Management revised its full-year AUM growth guidance upward to 20% and said credit cost improved to 2.6%, below the lower end of its earlier guidance range.
Numbers mentioned
Disbursement: INR2,644 crores (Q1 FY27)
p. 3
“We did around INR2,644 crores of disbursement, which is the ever highest disbursement in the Q1 as compared to the last quarter, it is around 49% improvement over the disbursement last financial year in the Q1 itself.”
Sadaf Sayeed, page 3 of the filed PDF · View the filing
Collection efficiency: 97.97% (Q1 FY27)
p. 3
“We are at around 97.97%, almost 98% of overall collection on time.”
Sadaf Sayeed, page 3 of the filed PDF · View the filing
Cost of funds: 10.13%, down from 10.27% (Q1 FY27)
p. 4
“In the quarter, we have reduced our cost of fund from 10.27% to 10.13%, 14 basis point reduction has already happened in the Q1 itself.”
Sadaf Sayeed, page 4 of the filed PDF · View the filing
Credit rating: AA-
p. 4
“We had a rating upgrade during the quarter. We are now AA- CRISIL rating.”
Sadaf Sayeed, page 4 of the filed PDF · View the filing
PPOP growth: 43% year-on-year, 3% quarter-on-quarter (Q1 FY27)
p. 5
“Our PPOP has improved by 43% year-on-year and around 3% quarter-on-quarter.”
Sadaf Sayeed, page 5 of the filed PDF · View the filing
Operating cost: 6.3% (Q1 FY27)
p. 5
“Our operating cost has come down to around 6.3%.”
Sadaf Sayeed, page 5 of the filed PDF · View the filing
Credit cost: 2.6% (Q1 FY27)
p. 5
“We have further reduced our credit cost from last quarter of 2.8% to 2.6% this quarter.”
Sadaf Sayeed, page 5 of the filed PDF · View the filing
AUM growth: 18% year-on-year (Q1 FY27)
p. 6
“we have seen the AUM growth of 18% year-on-year”
Sadaf Sayeed, page 6 of the filed PDF · View the filing
Direct assignment (DA) volume: INR355 crores (Q1 FY27)
p. 9
“INR355 crores this quarter.”
Praveen T., page 9 of the filed PDF · View the filing
Gold loan disbursement: around INR350-360 crores cumulative, INR100 crores per month (Q1 FY27)
p. 8
“Already, we have disbursed around INR360 crores of gold loans, and it is scaling up really well.”
Sadaf Sayeed, page 8 of the filed PDF · View the filing
Branch count: around 1,670 branches
p. 12
“We are right now around 1,670 branches.”
Sadaf Sayeed, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — 20% · FY27
stated firmly by Sadaf Sayeed
p. 5
“I think from a growth perspective, we have revised our guidance to 20%.”
Sadaf Sayeed, page 5 of the filed PDF · View the filing
NIM — 12.3% to 12.5% · FY27
stated firmly by Sadaf Sayeed
p. 14
“Our NIM guidance is around 12.5% on the upper spectrum and lower spectrum 12.3%.”
Sadaf Sayeed, page 14 of the filed PDF · View the filing
Cost of funds — single digit · by end of FY27
stated conditionally by Sadaf Sayeed
p. 14
“We are ranging to be around single digit by end of this financial year.”
Sadaf Sayeed, page 14 of the filed PDF · View the filing
ROA — 3.3% on the upper spectrum · FY27
stated firmly by Sadaf Sayeed
p. 14
“So ROA, we have guided for around 3.3% on the upper spectrum, and ROE of around 18% on the upper spectrum.”
Sadaf Sayeed, page 14 of the filed PDF · View the filing
Credit cost — 2.7% to 3.5%, likely to beat lower end · FY27
stated firmly by Sadaf Sayeed
p. 13
“So we are likely to overachieve that in terms of credit cost. We are looking at 2.7% at the lower spectrum, but we'll be better than that for sure, the way the asset quality is panning out.”
Sadaf Sayeed, page 13 of the filed PDF · View the filing
Long-term credit cost — 2% to 2.25% · long term
stated as an aspiration by Sadaf Sayeed
p. 13
“In a normal scenario, you can anticipate -- I'm not talking about this year, but overall, around 2% to 2.25% on a long-term credit cost kind of basis.”
Sadaf Sayeed, page 13 of the filed PDF · View the filing
AUM mix MFI vs non-MFI — 70-30 this year, long-term 60-40 on balance sheet basis · FY27 and long term
stated as an aspiration by Sadaf Sayeed
p. 14
“We had guided for this year at 75-25. We are already at 76-24. So this year, we will be around 70-30.”
Sadaf Sayeed, page 14 of the filed PDF · View the filing
Branch count — 1,740 to 1,750 branches · FY27
stated firmly by Sadaf Sayeed
p. 12
“So we will be in the range of 1,750 to 1,740 branches.”
Sadaf Sayeed, page 12 of the filed PDF · View the filing
ROA — around 5% · by 2030
stated as an aspiration by Sadaf Sayeed
p. 16
“and aiming to be at around 5% ROA by 2030.”
Sadaf Sayeed, page 16 of the filed PDF · View the filing
ROA — 4% to 4.5% · 18 months
stated as an aspiration by Sadaf Sayeed
p. 16
“And in a matter of, I think, 18 months, we should be in the range of around 4% to 4.5% ROA business”
Sadaf Sayeed, page 16 of the filed PDF · View the filing
Operating expenses — 5.5% to 5.75% · long run
stated as an aspiration by Sadaf Sayeed
p. 16
“This we feel in the long run should be at around 5.5% to 5.75%.”
Sadaf Sayeed, page 16 of the filed PDF · View the filing
Gold loan portfolio — around INR1,200 crores disbursement and around INR500 crores gold portfolio
stated firmly by Sadaf Sayeed
p. 13
“Our aim is to have around INR1,200 crores of disbursement and around INR500 crores of gold portfolio. We are likely to overachieve this number for sure.”
Sadaf Sayeed, page 13 of the filed PDF · View the filing
Digital collection — 75% digital collection · by 2030
stated firmly by Sadaf Sayeed
p. 5
“And the guidance that we have given of around 75% digital collection by 2030, I think we should be able to achieve that much earlier.”
Sadaf Sayeed, page 5 of the filed PDF · View the filing
CGFMU guarantee coverage — around 20% of AUM
stated conditionally by Sadaf Sayeed
p. 11
“The portion that we are looking at is around 20% to have that CGFMU guarantee.”
Sadaf Sayeed, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the full-year run rate should reach that level and that yields would expand as the NPA-heavy denominator shrinks.
Answered by Sadaf Sayeed
Asked by Varun Dubey: Can disbursement return to Rs 1,000 crore per month and push AUM growth above the 20% guidance?
p. 6
“INR1,000 crores per month disbursement will definitely be achieved.”
Sadaf Sayeed, page 6 of the filed PDF · View the filing
Management said the consumer durable pilot would be around Rs 500 crore with yields of 22-23% funded by cheaper CP borrowing.
Answered by Sadaf Sayeed
Asked by Varun Dubey: What is the expected AUM and yield from the new consumer durable loan business?
p. 7
“We are starting with a pilot of around INR500 crores.”
Sadaf Sayeed, page 7 of the filed PDF · View the filing
Management said DA income flows through net gain on fair value changes rather than interest income, and that gold loan referral disbursements were running at about Rs 100 crore a month.
Answered by Praveen T.
Asked by Prithviraj Patil: How is direct assignment income recognized and what is the scale of the gold loan referral business?
p. 8
“the income from direct assignment is looked through the net gain on fair value changes. It doesn't go through the interest income portion.”
Praveen T., page 8 of the filed PDF · View the filing
Management said the rain deficit had narrowed and less than 2% of the portfolio was directly exposed to sensitive agri-allied activity, so guidance was unaffected.
Answered by Sadaf Sayeed
Asked by Vishal Narnolia: Is there any impact from El Nino/uneven monsoon on growth guidance, and what proportion of AUM is under CGFMU?
p. 10
“Now the latest number shows it's around 12%, so deficit has come down.”
Sadaf Sayeed, page 10 of the filed PDF · View the filing
Management attributed the decline to write-offs and closures of lower-quality customers and expected the customer base to improve from Q2.
Answered by Praveen T.
Asked by Chintan Shah: Why did active client numbers decline and will this reverse?
p. 11
“So the Q2 onwards, the customer base will start improving.”
Praveen T., page 11 of the filed PDF · View the filing
Management said rates were raised from 23.5% to 24.85% at quarter end and further hikes were not currently planned given cheaper funding.
Answered by Sadaf Sayeed
Asked by Ashlesh Sonje: Have MFI price hikes been taken and are more planned?
p. 12
“we had increased the rate at the end of the quarter, so we had increased the rate by around from 23.5% to 24.85%.”
Sadaf Sayeed, page 12 of the filed PDF · View the filing
Management said guidance was 2.7% to 3.5%, with actual Q1 performance already below the lower end.
Answered by Sadaf Sayeed
Asked by Jyoti Khatri: What is the credit cost guidance for the current fiscal?
p. 13
“we have given the guidance of around 2.7% to 3.5%. We are already below the lower spectrum of around 2.7%.”
Sadaf Sayeed, page 13 of the filed PDF · View the filing
Management said the expansion would show up from Q2 as the yield hike flows through, with liquidity carry also normalizing.
Answered by Sadaf Sayeed
Asked by Ishank Gupta: Why hasn't NIM expanded despite the JLG yield hike taken late in the quarter?
p. 15
“I think that NIM expansion you will witness in the next quarter.”
Sadaf Sayeed, page 15 of the filed PDF · View the filing
Management said branch productivity, opex reduction and NIM expansion could take ROA to 4-4.5% within 18 months and toward 5% by 2030.
Answered by Sadaf Sayeed
Asked by Girish Shetty: How large a gap can Muthoot Microfin close toward peers' 4-4.5% ROA?
p. 16
“we should be in the range of around 4% to 4.5% ROA business and aiming to be at around 5% ROA by 2030.”
Sadaf Sayeed, page 16 of the filed PDF · View the filing
Management said the main challenge was maintaining strict credit standards on the creamy-layer customer base while growing that book.
Answered by Sadaf Sayeed
Asked by Varav G.: What challenges exist in shifting from JLG to individual loans?
p. 18
“the challenge is only that the credit standards that we have put in, we have to maintain that and continue to grow this business.”
Sadaf Sayeed, page 18 of the filed PDF · View the filing
Risks flagged
Flood and weather-related disruption in Assam
p. 8
“in Assam, the flood or this kind of a water problem is kind of an annual phenomenon”
Sadaf Sayeed, page 8 of the filed PDF · View the filing
El Nino/rain deficit affecting agri-allied customers
p. 10
“Some of the parts of Maharashtra, Karnataka that are sensitive to it.”
Sadaf Sayeed, page 10 of the filed PDF · View the filing
Multiple lending and overleveraging in the MFI industry
p. 12
“SRO has taken initiative to ensure that the multiple lending and overlending is avoided.”
Sadaf Sayeed, page 12 of the filed PDF · View the filing
Legacy NPA portfolio weighing on portfolio yield
p. 7
“the overall yield on the portfolio is calculated based on the denominator, which also includes the NPA portfolio, which is not yielding and which has been a historical portfolio, that's why the yield is slightly flat”
Sadaf Sayeed, page 7 of the filed PDF · View the filing
Excess liquidity carried on balance sheet causing negative carry
p. 15
“in Q1, unfortunately, we had to carry a lot of liquidity also because from Q4, we were carrying a lot of liquidity.”
Praveen T., page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.