Muthoot Capital Services Limited filed the transcript of its Q4 FY26 Earnings Conference Call, held on May 11, 2026, with both BSE Limited and the National Stock Exchange of India Limited, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript has been uploaded on the company's official website and is accessible at admin.muthootcap.com/uploads/Transcript_5b360c0f6f.pdf . The filing was signed by Deepa Gopalakrishnan, Company Secretary and Compliance Officer (Membership No.: A68790), on May 13, 2026. The call was hosted by Elara Securities and moderated by Mr. Maneet Khimawat, with Mr. Mathews Markose (CEO) and Mr. Ramandeep Gill (CFO) representing the management.

Regulatory Filings Overview

The newspaper publication of audited financial results for the quarter and financial year ended March 31, 2026, was circulated on May 10, 2026, in Business Line (English) and Mangalam (Malayalam). The audited financial results were approved by the Board of Directors on May 08, 2026, based on the recommendation of the Audit Committee, with the Statutory Auditors expressing an unmodified opinion.

Q4FY26 and FY26 Financial Highlights

The audited results provide a detailed extract of the company's financial performance. The following table presents the key financial metrics for the quarter and year ended March 31, 2026 (₹ in lakhs except earnings per share):

AUM Performance and Portfolio Mix

During the earnings call, CEO Mathews Markose stated that the company achieved an AUM of INR3,500 crores for FY26, including the managed book. CFO Ramandeep Gill provided a detailed breakdown, noting that the sole portfolio of Muthoot Capital Services closed at INR2,758 crores, up from INR2,118 crores at the start of the year, reflecting 29% growth. The co-lending portfolio, however, declined from INR940 crores to INR595 crores, a conscious strategic decision to reduce reliance on co-lending partners. The company also completed a Direct Assignment (DA) transaction of approximately INR100 crores with Hinduja in March — its first such transaction in 3 to 4 financial years. Among product segments, the used car book grew from INR86 crores to INR155 crores, while the commercial vehicle (CV) book expanded significantly from INR61.25 crores to approximately INR240 crores.

Asset Quality and GNPA

On asset quality, the CFO highlighted that the flow forward rate from standard AUM declined from 0.80% at the start of the year to 0.43% by Q4, while monthly slippages from Stage 2 to Stage 3 assets fell from approximately INR18 crores to INR8–9 crores. The company reported a GNPA of 6.41% on principal outstanding and 6.96% including interest accrual. On the managed book basis (GNPA 90+), the figure stood at 5.58%. The CFO noted that a significant contributor to the elevated GNPA was the recognition of a corporate loan — Up Money — of INR15.51 crores as an NPA in March, for which full provisioning has been made. Excluding this corporate loan, the retail GNPA on an apple-to-apple basis stood at 5.64% in Q4 compared to 6.45% in Q3. Total NPA as of the close of the financial year was INR194 crores. The Provision Coverage Ratio (PCR) remained at 50%, and the company's policy requires NNPA to remain below 6%. The company also provided 100% provisioning for INR43,15,000 worth of fraud loan accounts across 8 reported instances, and carried an excess provision of INR51.57 crores over IRAC norms under ECL.

Funding, Costs, and Liquidity

The company reduced its overall cost of funds by INR0.60 during the year. Total bank sanctions received during the financial year jumped to INR865 crores, more than double the INR435 crores of the prior year. The total cost of funds declined from 10.09% in Q3 to 9.48% in Q4. The blended yield on the MCSL portfolio improved to 21.02%, with 2-wheeler contributing 22.02%, used car at 18.45%, CV at 7.31%, and loyalty loans at 24.92%. The fixed deposit book grew from approximately INR40–45 crores to INR80.83 crores at a cost of 8.83%. The company's Liquidity Coverage Ratio (LCR) was maintained above 100% throughout the year, closing at 129% in March. The company reported no cumulative mismatch in any single stage of its structural liquidity and ALM position. On the equity fundraising front, the management indicated it is targeting approximately INR400 crores, structured as INR200 crores upfront and INR200 crores milestone-based, in the form of Compulsorily Convertible Preference Shares (CCPS), with promoter participation. Promoters currently hold 63.33% of the company.

Strategic Outlook and Digital Initiatives

Management outlined a focused roadmap for the coming year, targeting close to INR3,000 crores of disbursements and deeper penetration in existing markets through digital sourcing channels. The company's long-term AUM target of INR10,000 crores by FY28–29 was reaffirmed, with management projecting AUM of close to INR4,500 crores for the current year. On the digital and AI front, the company stated that 100% of pre-delinquency calls are now handled by AI agents, with text-bucket calling expected to be fully AI-driven by the end of Q1. More than 80% of collections are conducted through digital routes. Key digital initiatives include AI-based ticket segregation, speech and voice analytics, smart debt collection, AI-assisted collection monitoring, and enhanced data-driven underwriting. The company also obtained AUA and KUA licenses from UIDAI, enabling fully digital KYC through safe and biometric authentication from May onwards. The pretax ROA target for the company has been set at 2% to 2.5%, with the cost-to-income ratio currently at 85%, with a medium-term target of 70%–75%.

Muthoot Capital Services Limited has announced key changes in its senior management structure, with the Board of Directors approving both a resignation and a new appointment in the Collections department through Circular Resolution MCSL/CR-01/26-27. The announcement was made to both BSE Limited and National Stock Exchange of India Limited on April 23, 2026, in compliance with Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Leadership Transition Details

The company has disclosed that Mr. Sooraj Mohan will resign from his position as Head-Collections, with his departure taking effect from the closure of business hours on April 23, 2026. The resignation has been attributed to personal reasons, as outlined in the formal communication to stock exchanges. Mr. Sooraj Mohan submitted his resignation letter to Mr. Mathews Markose, Chief Executive Officer of the company, stating that the decision was made for the growth of his professional career.

New Appointee Profile

Mr. Vinay B N brings substantial industry experience to his new role at Muthoot Capital Services. His professional background spans 24 years, with primary expertise in Collections & Recoveries, complemented by experience in Automotive Finance Sales covering Auto and Commercial Vehicle loans. The new Head-Collections and Recoveries has demonstrated proficiency in developing channel and distribution strategies throughout his career. His most recent position was with Toyota Financial Services India Limited, where he served as Zonal Collection Head for the Eastern Region. Toyota Financial Services operates as the captive finance division of Toyota Kirloskar Motors.

Regulatory Compliance

The leadership changes have been announced in compliance with Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive disclosures as required under the listing regulations, including detailed information about both the cessation and appointment. The disclosure required under Regulation 30 read with Para A of Part A of Schedule III of the Listing Regulations and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026, has been enclosed as Annexure A.

Transition Process

The outgoing Head-Collections has committed to ensuring a smooth handover of all documentation and responsibilities. In his resignation letter, Mr. Sooraj Mohan expressed gratitude for the opportunities and trust experienced during his tenure with the organization, while pledging support for the transition process to maintain continuity and compliance. The seamless transition from April 23 to April 24, 2026, reflects the company's structured approach to managing senior management changes while ensuring operational continuity in the critical Collections function.