Muthoot Finance announced a robust performance with consolidated loan assets under management rising by 42% year-on-year to ₹1,47,673 crore. The consolidated profit after tax soared by 74% year-on-year, reaching ₹4,386 crore. The company has upgraded its financial year 2026 gold loan growth guidance from 50% to 30-35% due to favorable regulatory changes, higher gold prices, and tighter norms for unsecured credit. The microfinance sector is also showing renewed resilience.
Financial Performance
Muthoot Finance reported strong financial results, with consolidated loan assets under management reaching ₹1,47,673 crore, a 42% increase year-on-year. In the first half of the year, loan assets under management grew by ₹25,000 crore, representing a 21% growth.
The consolidated profit after tax reached ₹4,386 crore, reflecting a substantial 74% year-on-year increase from the previous year’s ₹2,517 crore. Muthoot Finance’s standalone profit stood at ₹4,391 crore, up 88% from ₹2,330 crore in the last half-year. For Q2, the profit after tax was ₹2,345 crore, an increase of 87% year-on-year.
Subsidiary Performance
Muthoot Home Finance: AUM stood at ₹3,247 crore, with revenue of ₹222 crore, a 44% increase year-on-year. Profit after tax was ₹10 crore.
Belstar Microfinance: Loan AUM reached ₹7,717 crore, with total revenue of ₹840 crore. The company experienced a loss of ₹160 crore for the half-year but has opened 23 gold loan branches to diversify its portfolio.
Muthoot Insurance Brokers: Revenue of ₹70 crore and a profit after tax of ₹23 crore.
Asia Asset Finance: Loan portfolio stood at Sri Lankan ₹3,868 crore, up 48% year-on-year, with revenue of ₹440 crore and profit after tax of Sri Lankan ₹40 crore.
Muthoot Money Limited: Loan portfolio reached ₹6,393 crore, a 63% increase. Revenue increased to ₹501 crore, with a profit after tax of ₹106 crore.
Revised Growth Guidance
In light of the strong performance, Muthoot Finance has upgraded its financial year 2026 gold loan growth guidance from 50% to 30%-35%. This revision is attributed to favorable regulatory changes, higher gold prices, and stricter norms for unsecured credit. The company aims to expand its non-gold loan portfolio, including microfinance, which accounts for approximately 12%-15% of the consolidated loan portfolio.
The company is also focused on accelerating its digital transformation to improve credit access and enhance customer service.
Source: BSE
