Q1 profit plunges to ₹6 crore from previous levels.
Increase in NPAs significantly impacts earnings.
Company faces asset quality pressures in current quarter.
Muthoot Microfin Ltd has reported a 95% decline in net profit to ₹6 crore for the first quarter ended June 2025, mainly due to a surge in bad loans.
In contrast, the non-banking financial company-micro finance institution (NBFC-MFI) had earned a profit of ₹113 crore a year ago.
Its total income also declined to ₹559 crore during the quarter from ₹664 crore in the year-ago period.
The total expenses increased to ₹553 crore against ₹517 crore in the same quarter a year ago.
The gross non-performing assets (NPAs) more than doubled to 4.85% compared to 2.10% a year ago, Muthoot Microfin said in a statement on Tuesday.
Similarly, its net NPA (net of Stage III provision) also jumped to 1.58% from 0.71% in the first quarter of the preceding fiscal.
