Shares of Muthoot Microfin Ltd. (MUTHOOTMF) opened 4% higher at ₹179.63 on NSE, reflecting a 22% YoY jump in assets under management to ₹15,323 cr. The stock later settled 0.4% lower at ₹172.27, a 15% decline over the last month.
Disbursements surged 28% YoY to ₹2,900 cr, a 10% sequential rise from the June quarter, and the joint liability group to non‑JLG mix improved to 69:31. The company’s Q2FY27 business update filed with the exchanges highlighted a ₹4,164 cr small‑enterprise loan book and ₹453 cr in gold‑loan disbursements.
Collection efficiency climbed to 98.11%, up 477 basis points YoY, while excluding advances it sat at 99.9%. Delinquency remained near‑zero, underlining strong asset quality.
Funding activity rose by ₹3,213 cr, taking first‑half borrowings to ₹5,946 cr; liquidity stood at ₹1,701 cr against sanctioned lines of ₹4,328 cr. The cost of funds dropped to 9.93% from 10.13% in Q1, the first time it entered single‑digit territory.
Digital collections accounted for 47% of disbursements, up from 25% YoY, and the Mahila Mitra app logged 22 lakh downloads. With 1,675 branches, the firm now serves 32 lakh active customers across Telangana, Andhra Pradesh and Assam.
Analysts anticipate Q3FY27 to sustain AUM growth and improved profitability; the company will report the third quarter on 30 January 2027, with no explicit guidance yet disclosed.