Muthoot Microfin's 54.17% margin trails 53-peer sector median
Standalone Q1FY27 net profit was Rs 81.34 cr, while management guided to 18%-20% FY27 AUM growth and 2.5%-3.0% credit cost.
Filed 06 Aug 2026, 18:58 IST · after market close · Muthoot Microfin Ltd (MUTHOOTMF)
Key takeaways
- Standalone Q1FY27 operating profit of Rs 362.23 cr supported a 54.17% operating margin.
- Muthoot Microfin's 54.17% operating margin was 10.26 percentage points below the 64.43% median of 53 reporting financial-services peers.
- Management revised FY27 AUM growth guidance to 18%-20% and set credit-cost guidance at 2.5%-3.0%.
Price around the results
Operating profit was not driven by other income
Standalone Q1FY27 operating profit of Rs 362.23 cr on revenue of Rs 668.63 cr translated into a 54.17% operating margin. Interest expense of Rs 246.74 cr and depreciation of Rs 10.87 cr were the main deductions between operating profit and profit before tax of Rs 106.6 cr. Other income was Rs 1.97 cr, so it was not a material source of the reported result. The filing came after market close, so there is no market reaction to assess yet.
Operating margin lagged the financial-services peer median
Muthoot Microfin's 54.17% operating margin was 10.26 percentage points below the 64.43% median for the 53 financial-services peers that had reported. The comparison places the company among the lower-margin reporters, with its operating spread below the sector reference point. A 23.7% tax rate and Rs 1.97 cr of other income were additional factors in the path from profit before tax to net profit of Rs 81.34 cr.
Management is widening products and geography
Management said FY27 AUM growth guidance was revised to 18%-20%, while credit-cost guidance is 2.5%-3.0% and is expected to improve year on year. The company said it started operations in Assam and that its non-JLG portfolio had crossed Rs 32,000 million in AUM. Management also said the company launched individual loans, gold loans and Micro-LAP, secured an e-KYC licence for Aadhaar-enabled onboarding, and launched the Mahila Mitra app. It expects 30% of incremental borrowing to come through the PTC route, management said.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹669 cr |
| Other income | ₹2 cr |
| Expenses | ₹306 cr |
| Operating profit | ₹362 cr |
| Operating margin (%) | 54.17% |
| Interest | ₹247 cr |
| Depreciation | ₹11 cr |
| Profit before tax | ₹107 cr |
| Tax | ₹25 cr |
| Net profit | ₹81 cr |
| EPS (₹) | ₹4.85 |
Operating margin of 54.17% compares with a Financial Services sector median of 64.43% across 53 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- FY27 AUM growth guidance was revised to 18%-20%.
- FY27 credit cost guidance is 2.5%-3.0%, with credit cost expected to improve year on year.
- The company expects to borrow 30% of incremental borrowing through the PTC route.
Expansion
- The company started operations in Assam.
New products
- The company launched individual loans, gold loans and Micro-LAP.
- The company launched the Mahila Mitra app.
New initiatives
- The company strengthened its non-JLG portfolio, and MSEL AUM crossed Rs32,000 million.
- The company secured an e-KYC licence for Aadhaar-enabled customer onboarding.
What to watch
- AUM growth against management's FY27 guidance of 18%-20%.
- Credit cost against the 2.5%-3.0% FY27 guidance.
- The share of incremental borrowing routed through PTC against the stated 30% expectation.