Muthoot Microfin Limited
10,611words
8turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
2.7%
3.3%
6.2%
2.9%
2.8%
3.2%
7.0%
6.0%
5.0%
4.0%
3.0%
Guidance — 9 items
Segments
opening
“Vision 30/30: Portfolio growth bridge 16 21% CAGR +43k Mn 300k Mn +117k Mn 2% Wallet share increase per annum Existing Client (Incremental Wallet share) 0.13 Mn client increase per annum Incremental Client Acquisition 140k Mn FY'26 Portfolio (22% Wallet Share) Primarily our vision of 300k Mn by 2030 would be strategically achieved through a strategic combination of increasing our wallet share in our existing matured customer base and acquiring new customers from open market.”
Segments
opening
“This would translate to a 21% CAGR, shifting focus from simple acquisition to wallet-depth maximization catering to the evolving need of our customers.”
Segments
opening
“*Conservative projection of 8% CAGR assumed for Retail segment growth till 2030.”
Segments
opening
“*Wallet share improved from 18% in FY’24 to 22% in FY’26 FY'30 Target (30% Wallet Share) 21% PORTFOLIO CAGR +2.0% PER ANNUM WALLET SHARE Derisking Strategizing the path to 30/30 Derisking & Strategizing the path to 30/30 A decade of learning.”
NACH Return reasons
opening
“36 36 37 39 43 NTM & NTC Client Count (Mn) NTC % on NTM NTM (Mn) 0.14 0.11 0.09 0.08 0.08 AUM Split ETM & NTM Clients NTM Existing Clients Retention (%) 95 96 95 96 95 27 31 32 34 35 Q4 FY’25 Q1 FY’26 Q2 FY’26 Q3 FY’26 Q3 FY’26 Q3 FY'26 Q4 FY'26 33% 67% 30% 70% Q4 FY’25 Q1 FY’26 Q2 FY’26 Q3 FY’26 Q4 FY’26 ~45% of group loans sourced from NTM customers, with NTM clients contributing meaningfully to portfolio expansion.”
NACH Return reasons
opening
“GNPA reduced by 1% in FY26 last 10 years .”
NACH Return reasons
opening
“Resilient performance in FY26 with continued momentum compared with FY’25.”
NACH Return reasons
opening
“• NCD + ECB contribution at 22% in FY26 (vs ~19% FY’25).”
NACH Return reasons
opening
“• Audit Team strength of 460+ professionals • 30% of audit staff have vintage of >5 years • 100% achievement of planned audits, demonstrating execution discipline • 5,758 Branch audits completed in FY26, ensuring extensive coverage Standardised Audit Procedure & Tool Multi-layer Quality Assurance Continuous Monitoring & Feedback • Report issuance TAT of 3 days.”
Risks & concerns — 15 flagged
User (Consent) AA (Encrypted Bridge) FIPs / FIUs (Data Providers & Users) Superior customer experience Higher productivity & efficiency Better risk assessment & decisioning Instant access to credit.
— Notes
PORTFOLIO OUTSTANDING – SAME CUSTOMER BASE (MAR’24 VS MAR’26) Clear shift toward secured, lower-risk, higher-ticket lending behaviour.
— Segments
MML STRATEGY: 2026–2030 (FUTURE-READY TRANSFORMATION) 17 Strengthening Risk & Governance Portfolio Diversification Superior Asset Quality Focus Climate & External Risk Preparedness • Advanced Enterprise Risk Mgt.
— Segments
(ERM) across verticals • Board supervised governance with real-time risk dashboards.
— Segments
data; hyper-customized score cards • Behavioral analytics-driven collection strategy; forward -looking risk models.
— Segments
• Digital collection/lending to mitigate risk • Integration of climate risk into underwriting models; • Coverage of NATCAT & micro- insurance Funding & Liquidity Strength • Diversified borrowing strategy: Lending institutions, co- lending, securitization, capital markets; • Strong liquidity buffers & stress testing framework.
— Segments
The decline is driven by stricter underwriting and exit of high-risk borrowers, alongside a focus on higher ticket lending.
— NACH Return reasons
Notably, 98.4% of falls within ‘Very Low’ and ‘Low’ risk this segment categories, underscoring a quality-led growth trajectory, disciplined underwriting, and strengthening long-term portfolio resilience.
— NACH Return reasons
This stability highlights the effectiveness of our focused strategy on acquiring high-quality, low-risk borrowers.
— NACH Return reasons
Strong customer retention at 95%, coupled with selective onboarding of low-risk borrowers, reflects the effectiveness of our targeted sourcing strategy, directly strengthening portfolio resilience and long-term sustainability.
— NACH Return reasons
Reflects better asset quality and risk controls RECOVERY STRENGTH .
— NACH Return reasons
FUTURE READY FOR SUSTAINABLE GROWTH Robust balance sheet, strong liquidity & prudent risk management.
— NACH Return reasons
APPLICATION SYSTEMS Mobile Apps (iOS / Android) Web Portals Partner APIs / Integrations 44 44 Loan Origination System (LOS) Loan Management System (LMS) Customer Application Collection System Risk Application Audit Application 3.
— NACH Return reasons
ENTERPRISE SYSTEMS Credit Bureau Integration AI/ML Credit Underwriting Engine Risk Scorecard Rule Engine Risk Management System Risk Management System Alerts & Notifications Risk Scorecard Transaction Monitoring Transaction Monitoring Audit & Compliance Tracking Audit & Compliance Tracking e-KYC / CKYC Fraud Detection & Face Matching MML Core Systems 5.
— NACH Return reasons
DATA & ANALYTICS Data Warehouse Risk Management System Payment Gateway Integrations Alerts & Notifications Penny Drop Verification Transaction Monitoring Bank APIs (IMPS/NEFT/RTGS) Audit & Compliance Tracking Collections (UPI, BBPS, Cards, Net Banking) ERP System Finance & Accounting System 7.
— NACH Return reasons
Speaking time
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Opening remarks
Notes
1. Global Findex data for India excludes northeast states, remote islands and selected districts 2. Data is for the population within the age group of 15+ years 3. Money borrowed from formal sources includes money borrowed from banks, NBFCs and the usage of credit cards Source: World Bank – The Global Findex Database 2025, Crisil Intelligence (Publicly available information) China United States India Brazil Household credit-to-GDP ratio (%, CY21-Q3CY25) 179.9% 152.9% 93.7% 77.0% 192.4% 164.1% 103.1% 182.5% 159.2% 96.5% 92.6% 93.8% 86.5% 84.9% 86.1% 85.5% 187.3% 193.0% 197.9% 201.4% 153.4% 147.0% 142.5% 140.4% 97.4% 90.6% 36.2% 36.7% 32.5% 41.5% 44.5% 45.5% 55.3% 49.6% 49.1% 60.0% 60.0% 59.0% 95.3% 93.2% 76.7% 69.1% 68.0% 85.4% 74.9% 73.9% CY19 CY20 CY21 CY22 CY23 CY24 Q3CY25 Brazil India Germany China United States United Kindgom Note(s): Overall credit includes lending to households and private non-financial corporations, excluding government and financial institutions. Source(s): BIS
UPI Transactions
crossed ₹200+ Tn in FY25 (run-rate). ~40% of global real-time digital payments happen in India¹. 800+ Mn Internet users; majority from rural India¹. ~89% adults with bank accounts in India (CY24) vs. 53% in CY14². Significant headroom for credit penetration across MSMEs & individuals. Result • Faster Credit Delivery • Better Underwriting • Lower Cost to Serve • Scalable Growth • Inclusive Financial Ecosystem India's open digital architecture is redefining credit delivery, unlocking new growth opportunities across the financial ecosystem. Note: 1. Source: NPCI, World Bank Global Findex Database 2025 | 2. Source: World Bank Global Findex Database 2025 (Publicly available information) Vision 30/30 Strategic Vision 2030 10 10 30K Cr AUM by 2030 ROA of 5%+ ROE of 20%+ Touching 10 Mn lives by 2030 By 2030, we e n v i s i o n t o build a ₹30k crore retail franchise by deepening wallet share with our evolving customers, diversifying into secured asset creation, and leveraging seamless technolo
Emerging Growth Segments
Loan Balance Growth% Market Share Change (%) Disbursement Growth (%) Business Loans- Secured Business Loans- UnSecured Gold Loans Other Business Loans Property Loans- (LAP) +157% +54% +41% +43% +48% +1.2% (0.7% 1.9%) +3.4% (6.4% 9.8%) +4.7% (11.4% 16.1%) +4.1% (9.4% 13.5%) +1.6% (3.5% 5.1%) 2.TICKET SIZE EXPANSION SIGNALS QUALITY SHIFT OVERALL AVERAGE TICKET SIZE (ALL SEGEMENTS) +28% 74,079 +186% 57,887 +85% +40% +48% +49% 1 2 3 Mar'24 Mar'26 KEY SEGMENTS Business Loans – Unsecured: +42% Gold Loans Housing Loans +72% +16% +10% 3.MML CUSTOMER BASE: TREND MIRRORS MARKET EVOLUTION Reduced Dependence on
Lending
Increasing preference toward Unsecured Business Loans and Secured Business Loans. Emerging Demand Across
Segments
Rising adoption in Gold Loans, LAP / Property-backed loans, and other business-purpose credit. 4 Property Loans (LAP) "As the industry shifts away from Microfinance toward diversified lending, MML’s customer base is organically evolving in the same direction.” This alignment positions MML to sustain growth while improving portfolio quality in a moderating credit cycle." Customer-Level evolution in terms of Product penetration: Behaviour of Common Client Base Across Cycles (1/2) 13 13 Same customers, different behaviour – shifting towards fewer, larger and purpose-driven loans Analysis based on common client base across Mar’24 to Mar’26 KEY TAKEWAYS LOAN BALANCE (Mn) DISBURSEMENT (Mn) +12% 4,07,599 4,58,428 +18% 5,97,578 7,06,067 LOAN COUNT (Cr) -12% 10,921K 9,590K AVERAGE TICKET SIZE (Mn) +35% 54,716 73,625 "Even within the same customer base, credit demand is shifting toward fewer, larger and more purpose-driven loans." 1. SHARP SHIFT AWAY FROM MICROFINANCE LOANS LOAN BALANCE DISBURSE
NACH Return reasons
89.8% 99.2% 99.8% 99.9% 100% On Time (T) T+1 T+2 T+3 T+8 90% of NACH payments were made on time, while bounce recoveries were largely completed by T+3 and fully by T+8, ensuring 100% collection efficiency with Nil delinquency. 98.9% Balance Insufficient 0.8% Account Closed/Transferred 0.2% A/c Blocked/Frozen 0.03% Credit Limit Reached Cycle-wise Muthoot Small Enterprise Loan Disbursement share 7th & above 6th Cycle 5th Cycle 3.4% 6.0% 9.0% 13.7% 4th Cycle 2nd Cycle 37.2% 30.7% 3rd Cycle Purpose-wise Concentration *CB Score band - Customer Distribution Trading 10.9% Agriculture 25.9% 35.18% 22.57% 23.45% 16.44% 32.9% Services 6.9% Manufacturing 23.4% Animal Husbandry 2.36% 700- 730 730-740 740-750 750-775 775 & above *Minimum CB score 700 59% of clients acquired have a CB score of 750+ Performance Highlights/Achievements - Muthoot SME (LAP) Loan Referral Gold Loan Performance Highlights/Achievements - Muthoot SME (LAP) Loan & Referral Gold Loan Q4 FY’26 Disbursement 265.6 Mn AUM 470.9 Mn PA