In , Muthoot Microfin Ltd (Finance & Investments - Microfinance) is outperforming Nifty 500 with +12.3% relative strength. Fundamentals: Weak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 (9 months ended December 2025) earnings • Updated Feb 22, 2026
What: Q3 profit of ₹51 cr offset H1 loss of ₹160 cr, reducing cumulative loss to ₹109 cr
Impact: +₹862 Cr revenue
“Management: "The microfinance IT achieved a significant turnaround in Q3 posting a profit after tax of 51 crores particularly offsetting the loss incurred in H1 of 160 crores."”
What: Loan AUM grew to ₹8,003 cr from ₹2,982 cr YoY, revenue up 222% to ₹862 cr
Impact: +₹862 Cr revenue
“Management: "During the nine months the loan AUM increased by 4,001 crores showing an increase of 105%. Total revenue of the nine months increased to 862 crores as against 268 crores in the previous nine months..."”
What: Draft regulations allow NBFCs to open branches without prior approval
“Management: "The Reserve Bank of India has issued draft regulations allowing NBFCs like Muthoot Finance to open new branches without prior approval."”
Earnings deceleration risks from management commentary
Trigger: Further slippages in loan portfolio
Management view: Management: "The Stage 3 loan assets stood at 4.93%, which has a provision coverage of 96.59%."
Monitor: Stage 3 assets trend
Trigger: Decline in NPA resolution volumes
Management view: Management: "These recoveries are not regular and depend on the timing and volume of NPA resolutions."
Monitor: Legacy NPA recovery rate
Key quotes from recent conference calls
“The microfinance IT achieved a significant turnaround in Q3 posting a profit after tax of 51 crores particularly offsetting the loss incurred in H1 of 160 crores. — Management”
“The Stage 3 loan assets stood at 4.93%, which has a provision coverage of 96.59%. The higher Stage 3 is also consistent with the industry peers consequent to RBI allowing microfinance companies to have 40% non-microfinance portfolio. — Management”
“During the nine months the loan AUM increased by 4,001 crores showing an increase of 105%. Total revenue of the nine months increased to 862 crores as against 268 crores in the previous nine months and it achieved a profit after tax of 203 crores in the nine months compared to a loss of 2 crores in the corresponding previous nine months. — Management”
“The Reserve Bank of India has issued draft regulations allowing NBFCs like Muthoot Finance to open new branches without prior approval. Management sees this as a positive step that will enable greater branch expansion flexibility and support further growth in the gold loan sector. — Management”
Forward-looking targets from management for FY26
Key Milestones
• Branch expansion under new RBI regulations
• Sustaining microfinance profitability
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +14% | +18% | Inflection Up |
| PAT (Net Profit) | +118% | +1% | Inflection Up |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Muthoot Microfin Ltd's latest quarterly results (Mar 2026) show
Muthoot Microfin Ltd's profit is growing with an turning around (inflection up) trend.
Muthoot Microfin Ltd's revenue growth trend is turning around (inflection up).
Muthoot Microfin Ltd's asset quality trend is insufficient_data.
Muthoot Microfin Ltd's long-term compounding rates
Muthoot Microfin Ltd's earnings growth is turning around (inflection up) with positive momentum on a sequential basis.
Muthoot Microfin Ltd's trailing twelve month (TTM) performance
Muthoot Microfin Ltd appears significantly overvalued based on our fair value analysis.
Muthoot Microfin Ltd's current PE ratio is 20.1x.
Muthoot Microfin Ltd's price-to-book ratio is 1.2x.
Muthoot Microfin Ltd is rated Weak with a fundamental score of 27.4/100. This score is calculated from objective financial metrics
Muthoot Microfin Ltd has a debt-to-equity ratio of N/A.
Muthoot Microfin Ltd's return ratios over recent years
Muthoot Microfin Ltd's operating cash flow is negative (FY2026).
Muthoot Microfin Ltd currently does not pay a significant dividend (yield 0.00%).
Muthoot Microfin Ltd's shareholding pattern (Mar 2026)
Muthoot Microfin Ltd's promoter holding has remained stable recently.
Muthoot Microfin Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Muthoot Microfin Ltd is an established outperformer with 2 weeks of consecutive Nifty 500 outperformance.
Muthoot Microfin Ltd has 3 key growth catalysts identified from recent earnings analysis
Muthoot Microfin Ltd has 2 key risks worth monitoring
In Q3 FY26 (9 months ended December 2025), Muthoot Microfin Ltd's management highlighted
Muthoot Microfin Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Muthoot Microfin Ltd may be worth studying
Muthoot Microfin Ltd investment thesis summary:
Muthoot Microfin Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
