Shares of Muthoot Microfin surged as much as 16.5% in Friday’s session, July 10, to hit an intraday high of ₹245 after the company reported a strong operational update for the June quarter, boosting investor sentiment.
The rally marked the stock’s biggest single-day gain in over a year and extended its year-to-date gains to 34%, as investors cheered healthy business growth, improving asset quality, and continued portfolio diversification.
The company reported disbursements of ₹2,645 crore during the first quarter of FY27, representing a 49% year-on-year increase, reflecting robust demand across its lending businesses.
During the quarter, Muthoot Microfin also commenced gold loan disbursements under its co-lending arrangement with Muthoot Fincorp, expanding its product portfolio and strengthening its presence in secured lending.
The company’s assets under management (AUM) stood at ₹14,457 crore as of June 30, 2026, registering 18% year-on-year and 3% sequential growth, supported by continued expansion of its loan book.
Its portfolio also became more diversified, with the Joint Liability Group (JLG) and Non-JLG mix improving to 76:24 from 83:17 at the end of March. Meanwhile, the small and micro enterprise individual loan portfolio increased to ₹3,214 crore while continuing to maintain near-zero delinquency. The newly launched gold loan business under the referral and co-lending model also contributed ₹192.86 crore in disbursements during the quarter.
Asset quality also showed marked improvement, with collection efficiency rising to 97.97% in the June quarter, up 497 basis points from a year ago and 157 basis points from the previous quarter. The company reported X-Bucket collection efficiency of 99.89%, reflecting sustained collection discipline and the resilience of its loan portfolio.
Muthoot Microfin further strengthened its balance sheet during the quarter, maintaining liquidity of ₹1,310 crore, supported by diversified funding sources and unutilised sanctioned credit lines of ₹3,485 crore. It also raised ₹2,664 crore during the quarter, providing additional financial flexibility to support future growth.
Looking ahead, the company unveiled its Vision 2030 strategy during its inaugural Capital Markets Day. Under the roadmap, the company aims to double its assets under management to ₹30,000 crore by FY30, while shifting its portfolio mix to 53.4% JLG and 46.6% non-JLG.
It is also targeting a return on assets (RoA) of over 5%, a return on equity (RoE) exceeding 20%, and 75% digital collections by 2030, underscoring its focus on building a diversified, technology-driven, and sustainably profitable lending franchise.
Muthoot Microfin share price trend
After remaining under prolonged selling pressure, Muthoot Microfin shares staged a strong comeback in April, rallying 32%, followed by another 19% gain in June. The momentum has continued in the current month, with the stock rising another 10% so far.
Although the stock ended CY25 on a flat note, it has rebounded sharply from its yearly low, surging nearly 98% from the low of ₹119. Despite the strong recovery, the stock still trades about 16% below its record high of ₹281 apiece, touched in December 2023.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
