Microfinance lenders expect disbursement momentum to sustain in the second half of FY27, supported by seasonal demand and improving activity in markets affected by weather-related disruptions earlier in the year, they said in their post-earnings analyst calls.
While lenders reported healthy business growth in the first half, they expect the traditionally stronger second half to support further expansion, even as they maintain tighter underwriting and closer monitoring of local risks.
CreditAccess Grameen’s assets under management (AUM) grew 19.5 per cent year-on-year (Y-o-Y) to ₹30,946 crore in Q2FY27, while disbursements rose 19.4 per cent to ₹6,355 crore. However, its group loan portfolio declined 2 per cent from the start of the financial year to ₹23,746 crore, partly due to write-offs and customer graduation.
“With write-offs normalising and the seasonally stronger second half ahead and increase in customer acquisition during H2, we expect the Group Loan book growth to return to guided levels,” said Ganesh Narayanan, managing director and chief executive officer, CreditAccess Grameen. The company retained its FY27 AUM growth guidance of 20-25 per cent.
Satin Creditcare reported consolidated disbursements of ₹3,697 crore in Q2, up 41 per cent Y-o-Y, while AUM rose 31 per cent to ₹16,589 crore. In Assam, where floods affected four districts, nearly 90 per cent of the 42,394 borrowers granted a moratorium resumed repayments during the moratorium period.
“The second half is seasonally a stronger period for disbursement, and on the basis of our current pipeline, we expect to land within the guided range for the full year,” said H P Singh, chairman and managing director, Satin Creditcare. The company has also retained its AUM growth guidance of 20-25 per cent for FY27.
Muthoot Microfin recorded its highest-ever quarterly disbursements of ₹2,900 crore, up 28 per cent Y-o-Y and 10 per cent sequentially. Its AUM rose 22 per cent to ₹15,323 crore.
“With a seasonally stronger second half and festive season ahead, we expect this momentum to remain healthy,” said Sadaf Sayeed, chief executive officer, Muthoot Microfin. The company reiterated its FY27 AUM growth guidance of 20 per cent.
Spandana Sphoorty’s AUM rose 10 per cent sequentially to ₹5,364 crore. Its gross non-performing assets (GNPA) improved to 2.5 per cent from 3.6 per cent in June, while net NPA declined to 0.5 per cent from 0.68 per cent.
However, the lender has not revised its FY27 outlook. “As of now, end of October, we stand where we had said we will stand as of March ’27. So no change in forecast,” said Venkatesh Krishnan, managing director and chief executive officer.
Fusion Finance reported Q2 disbursements of ₹1,726 crore, up 33 per cent Y-o-Y, while AUM grew 14 per cent to ₹8,007 crore. Disbursements were broadly flat sequentially, but October volumes were 10 per cent higher than the previous quarter’s monthly average. The company also expects a slight moderation from its FY27 AUM target of ₹10,000 crore.
The lender had curtailed lending in some flood-affected markets but expects demand to improve as the second half progresses. “We are confident of the demand, and we are confident that there will be significant growth from here on,” said Sanjay Garyali, managing director and chief executive officer.
