Muthoot Microfin Limited was formerly incorporated as "Panchratna Stock and Investment Consultancy Services Private Limited" on April 06, 1992, at Mumbai, Maharashtra. The name was converted to "Muthoot Microfin Limited" vide a fresh Certificate of Incorporation on November 06, 2012. As a part of the Muthoot Pappachan Group, the company is one of the leading business conglomerates in South India, with a focus on providing micro-loans and a presence in rural regions of India across financial services, automotive, hospitality, real estate, healthcare, information technology, precious metals, and alternate energy sectors.
Muthoot Microfin Limited, a non-deposit taking non-banking financial company, provides micro-loans to women entrepreneurs in rural regions of India. The company offers a diverse range of loan products, including:
- (i) Group loans for livelihood solutions: Such as income-generating loans and dairy loans, and individual loans like sewing machine loans.
- (ii) Life betterment solutions: Including emergency loans, mobile phone loans, solar lantern loans, solar fan, and education loans.
- (iii) Health and hygiene loans: Such as water purifier loans and induction stove loans.
Muthoot Microfin holds a strong market position, being the 3rd largest NBFC-MFI in India in terms of gross loan portfolio as of FY23. They are also the 3rd largest among NBFC-MFIs in South India by gross loan portfolio, the largest in Kerala, and command a 16% market share in Tamil Nadu.
The company's operations are spread across a wide geographical area, including Kerala, Tamil Nadu, Puducherry, Karnataka, Maharashtra, Gujarat, Haryana, Rajasthan, Uttarakhand, Madhya Pradesh, Uttar Pradesh, Odisha, West Bengal, Punjab, Chhattisgarh, Jharkhand, Bihar, Himachal Pradesh, and Telangana.
As of March 31, 2025, the company boasts 3.43 million active customers served through 1,699 branches spread across 20 states and 388 districts, with a gross loan portfolio (GLP) of ₹12,356.7 crore. In FY25, the borrower base grew by 2.3% YoY to 34.3 lakhs across 1,699 branches.
The company's market capitalization stands at ₹2,446 Crore as of July 2025. Over the past year, the share price has seen a significant decline of 40.7%, with a 22.33% decrease in the last six months alone. The 52-week low for Muthoot Microfin share price was ₹119.25, and the 52-week high was ₹254.5.
Muthoot Microfin's shares slumped 10.85% to ₹130.25 after the company reported a net loss of ₹401.15 crore in Q4 FY25, a stark contrast to a net profit of ₹119.76 crore in Q4 FY24. Revenue from operations declined by 13.71% YoY to ₹555.03 crore during the quarter. Net Interest Income (NII) for the fourth quarter was ₹321.05 crore, down 19.6% YoY.
Pre-provision operating profit (PPOP) also declined by 45.5% to ₹130.29 crore in Q4 FY25 from ₹239.28 crore in Q4 FY24. While this conservative approach impacted profitability due to elevated provisions and a deliberate management overlay of ₹230 crore, the company prioritized asset quality over short-term profitability.
- Assets Under Management (AUM): MML had AUM of ₹12,356 crore and net worth of ₹2,632 crore as on March 31, 2025.
- Capital Adequacy Ratio (CRAR): The capital position remained healthy, with a CRAR of 27.9%.
- Liquidity Position: The company has maintained liquidity of ₹697 crore of unencumbered cash and cash equivalents, alongside unutilized sanctions totalling ₹596 crore.
- Gross NPA (GNPA): The GNPA of the company is at 4.84% as against 2.29% a year ago.
- Net NPA (NNPA): The NNPA (net of stage III provision) stood at 1.34% as against 0.91% last year.
The company faced significant challenges in asset quality management during FY25. Muthoot Microfin demonstrated resilience amid a challenging economic landscape, achieving a modest 1.3% growth in Assets Under Management while grappling with increased gross non-performing assets. FY25 has been a challenging year for the industry, testing resilience and reaffirming that true strength lies not in avoiding adversity but in responding to it with discipline, empathy, and adaptability. Muthoot Microfin chose to prioritize asset quality and customer engagement over short-term profitability.
A strong capital adequacy ratio of 27.9% underpins financial stability, while strategic initiatives aim to enhance credit risk assessment and mitigate delinquency rates, particularly in the gold loan portfolio.
The company's commitment to customer engagement through digital platforms has opened significant cross-selling opportunities, particularly in gold and housing loans, despite regulatory hurdles impacting collection efficiency.
Muthoot Microfin has initiated loan disbursals under its co-lending partnership with the State Bank of India (SBI), the country's largest lender. Under this collaboration, SBI has sanctioned an Asset creation cap of ₹500 crore, to be disbursed in tranches of ₹100 crore. Loans ranging from ₹50,000 to ₹3 lakhs will be extended to identified and eligible customers, focusing primarily on members of Joint Liability Groups (JLGs) engaged in agricultural and allied activities, as well as other income-generating ventures.
Management remains cautiously optimistic about future performance, projecting a return on assets of approximately 2% for FY '26, with expectations of improvement as operational adjustments take effect.
Muthoot Microfin has received an ESG score of 72.2 and a CareEdgeESG 1 rating, recognizing its leadership in ethical governance and responsible growth in the financial services sector. The company has also submitted its FY 2024-25 Business Responsibility and Sustainability Report detailing ESG initiatives and compliance.
The next-generation leaders – Tina George Muthoot, Thomas Muthoot John, and Suzannah Muthoot – have joined as Executive Directors in Muthoot Capital Services, Muthoot MicroFin, and Muthoot Housing Finance, respectively, ensuring leadership continuity. A promoter holding of 55.5% indicates strong promoter confidence in the company's long-term prospects.
The company continues to focus on financial inclusion for underserved rural communities while navigating a challenging operating environment in the microfinance sector. Despite the near-term headwinds, the strong capital position and strategic initiatives position Muthoot Microfin for sustainable growth in the medium to long term.
