Muthoot Finance Posts Record 87% Profit Surge to Rs 2,345 Crore
Muthoot Finance, India’s largest gold loan company, has reported an impressive 87% jump in net profit to a record Rs 2,345 crore for the September quarter. The company’s gold loan business witnessed rapid growth, driving this exceptional performance.
Key Takeaways
- Record quarterly net profit of Rs 2,345 crore, up 87% year-on-year
- Consolidated loan book reaches all-time high of Rs 1,47,673 crore
- Gold holdings increased from 199 to 209 tonnes
- Collection efficiency improved to 99.08%
Financial Highlights
The company reported its highest-ever consolidated loan book of Rs 1,47,673 crore, marking a 42% increase. For the first half of the fiscal year, consolidated net profit reached Rs 4,386 crore, up 74% year-on-year, while standalone net profit grew 88% to Rs 4,391 crore. Total income rose 55% to Rs 6,461 crore.
Gold loan disbursements to new customers amounted to Rs 13,183 crore across 8,90,920 customers. The quantity of gold held as security increased from 199 tonnes to 209 tonnes, the Kochi-headquartered company announced.
Subsidiary Performance
The consolidated performance includes contributions from subsidiaries:
- Muthoot Homefin: Loan book grew 33% to Rs 3,247 crore with revenue up 44% to Rs 222 crore
- Muthoot Money: Loan book surged 182% to Rs 6,393 crore, revenue jumped 244% to Rs 501 crore, turning a net loss of Rs 5 crore into profit of Rs 106 crore
- Asia Asset Finance (Sri Lanka): Loan book increased 48% to 3,868 crore Lankan rupees
Operational Metrics
The company’s collection efficiency improved by 86 basis points to 99.08% from 98.22%. However, gross NPAs increased to 1.69% from 1.59% in the previous period.
Future Outlook
George Alexander Muthoot, Managing Director, announced that due to the record performance, the company is upgrading its FY26 gold loan growth guidance from 15% to 30-35%.
“Favorable regulatory changes by the RBI for gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand. We will continue to expand our non-gold loan portfolio including personal loan, home loan and business loan while maintaining our total non-gold loan AUM including microfinance at about 12-15% of the consolidated loan portfolio,” he added.
The company’s strong performance reflects growing demand for gold loans amid favorable market conditions and regulatory support.
