Muthoot Microfin Q2 FY2026-27 Update: AUM Rises 22%, ₹2,900 Crore Disbursements And 47% Digital Collections
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Muthoot Microfin announced a broad-based improvement in company performance for the quarter ending 30 September 2026. The company’s Q2 FY27 update shows higher disbursements, improved collection efficiency and lower funding costs.
Muthoot Microfin Limited reported 22% year-on-year (YoY) assets under management (AUM) growth to ₹15,323 crore in Q2 FY2026-27. The AUM rose 23.9% quarter-on-quarter (QoQ) on an annualised basis.
The Muthoot Microfin Q2 update showed stronger portfolio expansion, diversification and digital adoption, while funding costs moved into single-digit territory.
On the National Stock Exchange (NSE), Muthoot Microfin shares were trading at ₹173.84, up 0.54% at 9:20 am on 8 October 2026. The stock opened at ₹179 against the previous close of ₹172.91.
Muthoot Microfin Q2 FY27 Disbursements
Disbursements stood at ₹2,900 crore, up 28% YoY and 10% QoQ.
Portfolio diversification also improved. The joint liability group (JLG) and non-JLG mix moved to 69:31 from 83:17 at the end of March 2026. The small and micro enterprise (SME) individual loan (IL) portfolio reached ₹4,164 crore with near-zero delinquency.
Gold-loan disbursements under the referral and co-lending arrangement with parent Muthoot Fincorp Limited stood at ₹453 crore.
Muthoot Microfin Collections Improved
Collection efficiency (CE) rose to 98.11%, an improvement of 477 basis points (bps) from Q2 FY26. X-Bucket CE, excluding advances, stood at 99.9%.
The company had ₹1,701 crore of liquidity and ₹4,328 crore in unavailed sanctioned credit lines as of 30 September 2026. It raised ₹3,213 crore during the quarter, taking first-half-year borrowings to ₹5,946 crore.
Its cost of funds declined to 9.93% from 10.13% in the previous quarter, while incremental funding cost improved to 9.69%.
Muthoot Microfin Expands Reach
The company operated 1,675 branches and served 32 lakh active customers by the end of the quarter. Its presence also expanded across markets including Telangana, Andhra Pradesh and Assam.
Digital adoption accelerated. Mahila Mitra app downloads crossed 22 lakh. Digital collections grew to 47% from 25% a year ago and 40% in Q1 FY27.
Also Read - Sun Pharma Board To Consider ₹15,000 Crore NCD Issue On October 12
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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