Muthoot MCred Ltd, formerly known as Muthoottu Mini Financiers Ltd, reported a strong performance for the quarter ended June 30, 2026, with profit after tax (PAT) rising 232.73% year-on-year to ₹100.29 crore.
The gold loan-focused NBFC’s assets under management (AUM) grew 58.53% year-on-year to ₹7,098.38 crore, while total income increased 76.38% to ₹399.64 crore during Q1 FY27.
The sharp rise in profitability was accompanied by an improvement in asset utilisation and a continued focus on portfolio quality.
Asset quality remains strong
Muthoot MCred maintained a strong asset quality profile during the quarter, with gross NPA at 0.59% and net NPA at 0.24% as of June 30, 2026.
Return on assets (ROA) improved substantially to 5.17% in Q1 FY27, compared with 2.84% as of March 31, 2026. The company said the improvement reflected stronger profitability and better asset utilisation.
Branch network expands
The company’s branch network expanded 3.76% year-on-year to 994 branches in Q1 FY27, compared with 958 branches in Q1 FY26.
Muthoot MCred plans to further expand its network across diverse regions and markets, with a focus on strengthening its presence in key growth markets, reaching new customer segments and improving access to financial services.
The NBFC is pursuing both horizontal and vertical growth by expanding its branch footprint while improving business generation and productivity at existing branches.
Focus on sustainable growth
Muthoot MCred Ltd, Managing Director, Mathew Muthoottu, said the company had started FY27 on a positive note, with growth across profitability, AUM and its operating footprint.
He attributed the performance to the company’s business model, disciplined portfolio management and customer trust, adding that the company would remain focused on sustainable growth, responsible lending and strengthening its institutional capabilities.
Muthoot MCred Ltd, Chief Executive Officer, P. E. Mathai, said the Q1 performance demonstrated the company’s execution capabilities and focus on operational efficiency and asset quality.
He said the company was seeing healthy momentum across its secured lending portfolio, supported by an expanding branch network and technology-led processes.
Muthoot MCred plans to continue focusing on customer experience, prudent risk management and building a stronger and more scalable business as it expands its lending operations.