Muthoot Finance standalone profit jumps 27% to 2,977 crore rupees
Key Facts
Muthoot Finance on October 31 reported a 27% rise in standalone net profit to 2,977 crore rupees in the second quarter of FY 2026-2027, compared with 2,345 crore rupees in the year-earlier period. The results were announced after the previous trading session, in which the stock ended down 3.54% at 2,408.60 rupees on the National Stock Exchange of India. The figures reflect profit growth alongside an expansion in the company’s income and loan portfolio. Management also raised its gold loan growth guidance for the current fiscal year, Managing Director Alexander George said. The profit figures cited here are for the company on a standalone basis; consolidated group figures differ.
Total income was 8,842 crore rupees in the quarter ended September 30, 2026, up 37% from 6,442 crore rupees in the same quarter a year earlier, according to NDTV Profit. Net interest income rose 34.4% to 5,365 crore rupees from 3,992 crore rupees a year earlier, exceeding the CNBC-TV18 poll estimate of 4,525 crore rupees. Consolidated net profit was also 2,978 crore rupees, above the poll estimate of 2,950 crore rupees. That consolidated figure differs from the standalone profit of 2,977 crore rupees reported by NDTV Profit. The comparison shows that growth in interest income and the consolidated result came in above poll estimates, while the figures were measured on different bases.
Standalone assets under management for loans reached 1,87,810 crore rupees, up 42% year on year and 9% from the previous quarter, according to NDTV Profit. At the group level, assets under management for loans grew 42% year on year to 2,09,317 crore rupees in the first half ended September 30, 2026. Consolidated gold loan assets rose 46% to 1,93,212 crore rupees, while standalone gold loan assets climbed 43% to 1,78,956 crore rupees. The figures show that gold loans make up the largest part of the group’s portfolio, with the overall loan book growing in the first half. The active customer base also expanded by about 5 lakh to 69 lakh, compared with 64 lakh a year earlier.
Gold held as collateral rose to 204 tonnes in the first half of FY 2026-2027, from 196 tonnes a year earlier. Standalone gold loan disbursements to new customers totaled 20,238 crore rupees during the period, covering 9,93,900 customers. George said the company was raising its gold loan growth guidance for FY 2026-2027 by an additional 10%. The guidance revision comes as the company continues to expand its gold-backed lending portfolio alongside increases in customers and collateral. The available figures do not break down how the targeted increase is distributed across the fiscal year.
The Reserve Bank of India’s updated guidelines for gold-backed lending took effect on April 1, 2026. George said the new rules entail a learning curve for the company and its customers, and that it will take several quarters for them to adapt steadily. This puts the revised loan growth guidance in the context of changing lending rules that the company and its customers must absorb. Among subsidiaries, Belstar Microfinance posted a profit after tax of 144 crore rupees in the first half, compared with a loss of 160 crore rupees in the corresponding period of the previous fiscal year. Muthoot Money also reported assets under management for loans of 12,716 crore rupees, up 99% from 6,393 crore rupees a year earlier.
The board approved the merger of wholly owned Muthoot Money into Muthoot Finance, with April 1, 2027 set as the appointed date, subject to regulatory and other approvals. The decision follows growth in Muthoot Money’s loan assets in the first half, according to the reported figures. Completion of the merger remains subject to obtaining the required approvals. Among the dates related to the results, the updated Reserve Bank of India guidelines took effect on April 1, 2026, while the board set April 1, 2027 as the merger date. The report did not give another upcoming date for the approval process.