Muthoot Finance announced a robust performance for Q2 FY26, marked by a 42% YoY increase in Consolidated Loan AUM, reaching ₹1,47,673 Crores. Consolidated Profit After Tax also saw significant growth, up 74% YoY. The company’s strategic focus on gold loans, along with contributions from its subsidiaries, drove the positive results. The Board has upgraded its FY26 gold loan growth guidance to 30-35%.
Financial Highlights
Muthoot Finance reported strong financial results for the second quarter of FY26. Key highlights include:
- Consolidated Loan AUM: Increased by 42% YoY, reaching ₹1,47,673 Crores.
- Consolidated Profit After Tax: Grew by 74% YoY.
- Standalone Loan AUM: Increased by 47% YoY to ₹1,32,305 Crores.
- Gold Loan AUM: Reached ₹1,24,918 Crores, a 45% YoY increase.
- Standalone Profit After Tax: Rose by 88% YoY
Key Ratios and Performance Metrics
The company maintained a healthy financial position with the following key ratios:
- Capital Adequacy Ratio: 20.89%
- Return on Average Loan Assets: 7.30%
- Earnings Per Share (Basic): ₹109.39
Subsidiary Performance
Muthoot Finance’s subsidiaries also contributed to the overall strong performance:
- Muthoot Homefin (India) Ltd: Loan AUM increased by 33% YoY, and total revenue increased by 44% YoY.
- Muthoot Money Ltd: Saw a 182% YoY increase in Loan AUM and a 244% YoY increase in total revenue, with a profit turnaround to ₹106 Crores.
- Asia Asset Finance PLC (Sri Lanka): Loan AUM increased by 48% YoY.
Strategic Initiatives and Future Outlook
The Board of Directors has upgraded its FY26 gold loan growth guidance to 30-35%, reflecting confidence in the company’s ability to continue its growth trajectory. Muthoot Finance is focused on expanding its non-gold loan portfolio and enhancing its digital capabilities. The company plans to increase its financial presence while adhering to all regulatory guidelines to foster the industry’s ongoing financial health.
The board also approved incremental fund raising of up to ₹35,000 crores by issuing Redeemable Non-Convertible Debentures.
Additional equity infusion of ₹500 Crores in Muthoot Money Limited, a wholly owned subsidiary of the Company was also approved.
Source: BSE
