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Muthoot Microfin slumped 10.85% to Rs 130.25 after the company reported a net loss of Rs 401.15 crore in Q4 FY25 as against a net profit of Rs 119.76 crore in Q4 FY24. Revenue from operations declined by 13.71% YoY to Rs 555.03 crore during the quarter. Net Interest Income (NII) for the fourth quarter was Rs 321.05 crore, down 19.6% YoY. Pre-provision operating profit (PPOP) declined by 45.5% to Rs 130.29 crore in Q4 FY25 from Rs 239.28 crore in Q4 FY24. Impairment on financial instruments in the quarter ended on 31 March 2025.

Muthoot Microfin tumbles after weak Q4 performance

The microfinance arm of Muthoot Pappachan Group, Muthoot Microfin Ltd, on Wednesday (December 4) said it has implemented its third interest rate reduction this year, lowering lending rates by 25 basis points (bps) for income-generating loans (IGLs) and by 125 bps for third-party product loans (TPPs).With the latest revision, the interest rate for income-generating loans now stands at 23.05%, while third-party product loans will be offered at 22.70%. These revised rates will apply to all loans sanctioned from December 3, 2024.The move follows two earlier reductions by the microfinance institution — 55 bps in January 2024 and 35 bps in July 2024 — demonstrating a consistent effort to make credit more affordable for borrowers. Muthoot Microfin will continue to maintain 50% of its portfolio from the southern geographies — to which it has added Andhra Pradesh and Telangana  — in the long term. The northern region currently comprises around 23% of the portfolio, the east is around 12% and the balance comes from the western parts of the country.

Muthoot Microfin cuts lending rates for third time this year

Muthoot Microfin has secured the highest CareEdge-ESG 1 rating with a score of 72.2, far exceeding industry
medians. This leadership is driven by a 78.9 governance score (zero data breaches, diverse board), a 72.1 social score (100% women borrowers, 1:1 pay equity), and a 54.6 environmental score (Net Zero by 2040, ₹27.5 crore in green loans). This milestone confirms its status as a premier choice for ESG-conscious investors and a leader in ethical finance in India.

Muthoot Microfin secures ESG score of 72.2 and the highest CareEdge-ESG 1 rating from CARE ESG Ratings.

MML’s asset quality declined in FY25, leading to a Rs 222 crore loss and -1.6% RoMA, down from Rs 449.6 crore profit in FY24.


MML’s portfolio remains concentrated in South India, with 47% in Tamil Nadu, Kerala, and Karnataka. Though top state exposure was reduced to 25%, concentration remains high. MML aims to cap state-wise exposure at 20%, with scalability in new regions a key monitorable.



The issuer has made timely interest payments.

Sadaf Sayeed , CEO

Strong moral support from MFL to MML due to majority ownership, shared branding, and board overlap. As MPG’s second-largest business, MML adds strategic value and product diversity, with profitability set to rise under new risk-based pricing norms.



MML remains adequately capitalised with Rs 2,632 crore net worth and 3.0x gearing as of March 2025. The Dec 2023 IPO boosted CAR to 27.9%. Despite MFL’s stake dropping to 50.2%, it is expected to retain majority ownership—a key rating factor



Backed by strong parent ties, MML has over 50 lenders and raised Rs 1,299 crore in H2 FY25 at an average cost of 11.4%. It also had Rs 1,619 crore in unused securitisation lines as of April 2025. Fund-raising at competitive rates remains a monitorable.



Security Name: 10.75% Muthoot Microfin Limited 01 Aug 2026

ISIN: INE046W07263

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