Press Release

Ref: BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai - 400001 Mumbai - 400051 Scrip code: 544055 Symbol: MUTHOOTMF Dear Sir/Madam, Sub.: Press Release Pursuant to Regulation 30 of SEBI (Listing Regulations and Disclosure Requirements), 2015, we hereby submit the Press Release on the unaudited Financial Results for the quarter and half year ended September 30, 2026. The same is also available on the website of the company at www.muthootmicrofin.com Please take the same on record. Thanking you, Yours Truly For Muthoot Microfin Limited Neethu Ajay Company Secretary and Chief Compliance Officer Press Release Strong Business Momentum While Building a More Diversified and Resilient Enterprise for the Future • Highest-ever quarterly disbursements of Rs. 2,900 crore; GLP up 22% YoY to Rs. 15,323 crore • Strengthened Portfolio Mix, Non-JLG portfolio expands to 31% of GLP • Digital collections increased to 47% of total; NATCAT coverage mitigates climate and portfolio risks • NIM improves by 50 bps QoQ to 12.5%; Average cost of borrowing declines to 9.93%, entering single-digit territory for the first time • Credit cost at 2.6%, well-within our guided range of 2.5-3% • PAT reaches 3.6x YoY, crossed Rs. 100 crore a quarter • CareEdge Global outlook revised to Positive Mumbai, 5th November 2026: Muthoot Microfin Limited (NSE: MUTHOOTMF, BSE: 544055), among India’s leading Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), focused on providing micro-loans to women entrepreneurs with a focus on rural regions of India, today announced its unaudited financial performance for the quarter and half year of the financial year 2026-27. Business Highlights – Q2 FY27 • Achieved the highest-ever quarterly disbursements of Rs. 2,900 crore, registering a growth of 27.5% YoY and 9.7% QoQ. • Sustained business growth, with Gross Loan Portfolio (GLP) reaching Rs.15,323 crore, registering a growth of 22.0% YoY. • Non-JLG portfolio increased to 31% of GLP, reflecting the company's progress in diversifying its portfolio beyond the traditional JLG segment. • Small and Micro Enterprise Loan portfolio scaled to Rs. 4,164 crore, accounting for 27% of GLP, with near-zero delinquency. Secured lending portfolio strengthened to Rs. 653 Crore. • Digital collections increased to 46.7% of total collections, up from 25% in Q2 FY26. • Collection efficiency improved to 98.1%, up 477 bps YoY, while X-bucket collection efficiency stood at 99.9%. • Active customer base at 32.7 lakh, supported by a pan-India network of 1,675 branches. • CareEdge Global Ratings revised its outlook to 'Positive' while reaffirming its BB- rating; CRISIL had earlier upgraded the company's long-term rating to AA-/Stable and reaffirmed its A1+ Commercial Paper rating. Financial Highlights – Q2 FY27 • Total income grew 26.9% YoY and 9.3% QoQ to Rs. 732.9 crore, while Net Interest Margin (NIM) improved by 50 bps QoQ to 12.5%. • Pre-Provision Operating Profit (PPOP) increased 67.4% YoY to Rs. 249.4 crore. • Profit After Tax (PAT) stood at Rs. 110.8 crore, registering a growth of 262.9% YoY. • Asset quality strengthened further: GNPA improved by 123 bps YoY to 3.38%. NNPA (net of Stage III provisions) reduced by 36 bps YoY to 1.05%. Credit Cost at 2.6%, well within the guided range of 2.5-3% • Raised Rs. 3,213 crore during the quarter, taking H1 FY27 borrowings to Rs. 5,947 crore, supported by continued access to diversified funding sources. • Maintained a strong liquidity position of Rs. 1,835 crore and unavailed sanctioned credit lines of Rs. 4,442 crore. • Average cost of borrowing declined to 9.93%, entering single-digit territory for the first time, supported by improved credit ratings. • Capital adequacy ratio (CRAR) remained healthy at 25.5%. Commenting on the performance: Mr. Thomas Muthoot, Chairman & Non-Executive Director of Muthoot Microfin, said “The microfinance industry has evolved considerably over the years, expanding its role from providing access to credit to becoming an important enabler of livelihoods and entrepreneurship. As the sector matures, it is responsibility of the sector to cater to the growing aspirations of its customers. Hence, the emphasis is increasingly on building stronger institutions, diversifying lending models and ensuring that growing credit demand of its clients is met with appropriate products. This evolution will be important in shaping the industry's next phase. At Muthoot Microfin, we have been taking steps in this direction through a gradual diversification of our lending portfolio. As of September 2026, our non-JLG portfolio accounted for 31% of our overall AUM, reflecting our progress in broadening the business beyond the traditional JLG model and offering customers a wider range of financial products. However, our approach to growth remains firmly anchored in asset quality. While the evolving macroeconomic environment and uneven monsoon conditions call for continued vigilance, our pioneering initiatives like natural calamity insurance create sufficient safeguards for our customers. We remain confident in the resilience of our business and the underlying demand for credit across our markets. We will continue to grow in a calibrated manner, balancing growth opportunities with prudent lending practices and a long-term focus on sustainable business performance. The recent revision of our Global Rating’s outlook to ‘Positive’ by CareEdge, following CRISIL’s upgrade of our long-term rating to AA-/Stable earlier this year, further reinforces the strength of our business and our improving credit profile. Going forward, we will continue to build on our strong foundation, deepen our presence across our core markets and gradually strengthen our secured lending portfolio. The progress we have made gives us confidence as we work towards our FY27 priorities and longer-term Vision 30- 30 ambitions.” Mr. Sadaf Sayeed, CEO, Muthoot Microfin, said “Q2 FY27 has been a strong quarter for Muthoot Microfin, with continued improvement across all parameters: business growth, portfolio quality, operational efficiency and profitability. During Q2 Muthoot Microfin’s AUM stood at Rs. 15,323 crore, registering a year-on-year growth of 22% ; disbursements rose 28% to Rs. 2,900 crore, and our quarterly profit reached 3.6x to Rs. 110 crore. There has been consistent improvement on all operating parameters. Our Opex reduced 96 bps YoY and 29 bps QoQ . Net Interest Margins have improved by 50 bps QoQ to 12.5%. MML’s Cost to income ratio has come down to 48.1% an improvement of 557 bps QoQ. The biggest shift is in our portfolio mix. Within six months, our non-JLG loans have grown from 17% to 31% of AUM, surpassing the 70:30 mix that was targeted for end of FY27. Our Small and Micro Enterprise Loan portfolio now stands at Rs. 4,164 crore, about 27% of AUM, with near- zero delinquency. Gold loans, through our referrals and co-lending partnership with Muthoot Fincorp, have also gained strong momentum, with Rs. 453 crore disbursed in the quarter. Together, these products allow us to address a wider range of customer financing needs and deepen our relationships with existing customers and extend our reach beyond traditional microfinance lending. Asset quality continues to improve steadily, with 32 bps QoQ reduction in GNPA. Collection efficiency rose to 98.1%, up 477 bps year-on-year, and X-bucket collection efficiency improved to 99.9%. Overall GNPA declined to 3.38%, and credit cost at 2.6% remained comfortably within our guidance. With the diversified product offerings we have successfully built a well-diversified asset mix which can withstand any emerging Macroeconomic climate risk. The recent uneven monsoon and drought-like conditions in certain parts of the country, have not brought any material impact on our portfolio. The on-book portfolio of group loans for Karnataka and [Showing first 8,000 characters — download PDF for full document]