Q3 FY26 Results · Quarterly Results (Oct–Dec 2025)
Muthoot Microfin:
₹62 Cr PAT. Still Digging Out. But Now With A Shovel.
India’s second-largest microfinance lender spent 2024 getting hammered by Karnataka. Now it’s Q3, PAT is barely above ₹60 crore, GNPA is 4.4%, and management is enthusiastically explaining why losing money in 2025 actually means winning in 2026. The audacity is remarkable. The math is… working?
Market Cap₹2,572 Cr
CMP₹151
P/B Ratio0.95x
ROE (3-Yr)6.13%
Return (3M)-16.0%
01 — At a Glance
The MFI That Paid Dues to Karnataka and Got Nothing in Return
- 52-Week High / Low₹210 / ₹119
- Q3 FY26 Revenue₹603 Cr
- Q3 FY26 PAT₹62.4 Cr
- Q3 EPS₹3.66
- TTM EPS₹-17.72
- Book Value / Share₹158
- Price to Book0.95x
- Gross NPA (Dec 2025)4.40%
- Net NPA (Dec 2025)1.34%
- AUM (Dec 2025)₹13,078 Cr
Flash Summary: Muthoot Microfin has the oddest financial horror movie arc. FY25: lost ₹223 crore. Q1 FY26: lost ₹401 crore (Karnataka pain). Q2-Q3: slowly clawing back to ₹62 crore profit in Q3. Stock is down 16% in 3 months. Trading at 0.95x book value—which means the market thinks your balance sheet is worth less than paper. And yet… management is convinced this is a redemption story, not a funeral.
02 — Introduction
How To Turn Your Best Year (2024) Into Your Worst Year (2025), A Masterclass by Muthoot
Founded in 1992, Muthoot Microfin is a subsidiary of the Muthoot Pappachan Group and ranks as India’s 2nd largest NBFC-MFI by gross loan portfolio. They lend to women in rural regions. Noble goal. Sound business model historically. Then 2024 happened, and Karnataka decided that borrower stress was actually Muthoot’s problem to solve.
The company IPO’d in December 2023, raising ₹960 crores and getting listed with great fanfare. Q3 FY25 (Dec 2024): GNPA was a manageable 2.29%. Fast forward to Q4 FY25 (Mar 2025): a provision surprise hit. TTM PAT for FY25 ended at negative ₹223 crore. Translation: they paid a ₹401 crore management overlay in Q1 FY26 alone for Karnataka pain.
Now Q3 FY26 (Dec 2025): PAT is ₹62 crore. A full 9 months later and they’re barely profitable. GNPA has bloated to 4.40%. AUM growth is slowing to mid-single digits. And the stock has collapsed 16% in three months. The market is asking a simple question: Is the worst over, or are we still in the movie?
The IPO Plot Twist: Muthoot IPO’d at ₹600 a share in December 2023. Today it trades at ₹151. That’s a 75% haircut in just 14 months. The prospectus promised growth, returns, and a burgeoning rural lending opportunity. What arrived instead was Karnataka, an audit shock, and a management team that now explains losses as “investments in the future.” Welcome to post-IPO reality.
03 — Business Model: Lending to Women. Losing to States.
Joint Liability Groups: Genius Until They Aren’t
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