Midland Microfin Q3 FY26: Resilient Growth Drives 75% Surge in Profitability

17 February 2026

Financial Performance (Q3 FY26 vs Q3 FY25): Midland Microfin Limited reported a strong improvement in profitability in Q3 FY26, supported by higher operational revenue and fee income. Total revenue from operations increased by 10.3% year-on-year (YoY) to ₹1,657.43 million, compared to ₹1,503.14 million in Q3 FY25, driven by growth in interest income and fees. Total income (including other income) also improved during the quarter, aided by an increase in other income sources. Profit After Tax (PAT) rose significantly by 74.5% YoY to ₹83.22 million, compared with ₹47.68 million in the corresponding quarter last year, reflecting better operational performance despite increased impairment costs. Earnings Per Share (EPS) increased to ₹1.59 from ₹0.77 in Q3 FY25, indicating improved shareholder profitability.

Operational Metrics (Q3 FY26 vs Q3 FY25): Operational performance remained resilient during the quarter. The net profit margin stood at 4.94%, reflecting the company's ability to maintain margins amidst operational costs. The impairment on financial instruments remained elevated at ₹323.77 million, compared to ₹138.61 million a year ago, indicating a cautious approach to provisioning for potential credit risks. Asset quality remained manageable, with the Gross Non-Performing Assets (GNPA) Ratio at 2.97% and the Net Non-Performing Assets (NNPA) Ratio at 0.73%. The company maintained a healthy buffer against defaults, with the Provision Coverage Ratio at 75.87%. The Debt-Equity Ratio stood at 3.58, while the company maintained a robust capital position with a Capital Adequacy Ratio of 30.05%, comfortably above regulatory requirements.

​Strategic Developments: During the quarter, Midland Microfin Limited continued to focus on expanding its lending activities, utilizing proceeds from the issuance of secured and unsecured Non-Convertible Debentures (NCDs) primarily for onward lending​​​​​​​​​. The company maintained a strong capital base, with net worth standing at ₹6,633.83 million, supported by retained earnings​. While impairment costs saw an increase, strong solvency buffers and stable liquidity provide resilience, evidenced by a security cover maintained at 1.11 times on secured listed debt​. Management remains focused on maintaining asset quality, complying with covenants, and optimizing its funding mix to support sustainable profitability over the medium term​.