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May 07, 2026 10:21 AM • Zerodha Pulse

Muthoot Microfin grew 13% when the industry shrank 20%; CEO explains what's next

▲ Bullish -2.0%

The company has achieved a massive bottom-line swing from a ₹401 crore loss to a ₹71 crore profit, primarily driven by a 95 bps improvement in Gross NPA and 13% AUM growth. For swing traders, this 'cleaning of the slate' and margin expansion targets a multi-day re-rating as the market prices in a fundamental recovery. Given the high beta (1.52) and recent 33% monthly momentum, the stock is likely to test immediate resistance levels as management guidance shifts toward a profitable FY27.

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