Muthoot Finance Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with the stock exchanges, as communicated via reference SEC/MFL/SE/2025/6708 dated August 7, 2026. The report, signed by Company Secretary Rajesh A (ICSI Membership No. FCS 7106), is prepared on a standalone basis and covers the period April 01, 2025 to March 31, 2026. Independent reasonable assurance on BRSR Core Indicators has been obtained from Tibu & Niyas, Chartered Accountants, Edappally, Kochi.

Company Overview and Operational Footprint

Muthoot Finance Limited, incorporated in 1997 and registered at NH Bypass, Palarivattom, Kochi 682 028, operates as a Non-Banking Financial Company (NBFC) with its primary business activity classified under Non-Banking Financial Services, which accounts for 96.35% of its total turnover. The company's paid-up capital stands at ₹4,01,46,84,760. Its CSR-applicable turnover is reported at ₹2,75,999 million, with a net worth of ₹3,77,340 million.

The company maintains an extensive domestic network, with no international operations:

The company serves a diverse customer base including small business owners, vendors, traders, farmers, and salaried individuals, with retail Gold Loans as its primary offering, supplemented by unsecured personal and business loan products.

Workforce and Employee Well-Being

As at the end of FY 2025-26, Muthoot Finance Limited reported a total permanent employee strength of 31,613, with no workers engaged as defined under the BRSR framework, given the nature of its financial services operations.

The Board of Directors comprised 15 members as on March 31, 2026, with 1 female director representing 6.66% of the board. Among Key Management Personnel (KMP), 2 positions were held with no female representation. On employee well-being, 19,714 permanent employees (62.36%) were covered under health insurance. All 8,278 female permanent employees (100%) were covered under maternity benefits, with non-ESI covered employees eligible for maternity expense reimbursement up to ₹25,000.

The company also provides compensatory support in the event of employee demise:

Median remuneration data for the reporting period is as follows:

Governance, Ethics, and Sustainability Framework

The highest authority for Business Responsibility policy implementation is George Alexander Muthoot, Managing Director (DIN: 00016787). The Board approved a circular resolution on January 28, 2026, merging the ESG Committee with the Corporate Social Responsibility Committee, forming a reconstituted CSR and Sustainability Committee. This committee, effective as on March 31, 2026, is chaired by Mr. C A Mohan (Independent Director) and includes Mr. George Muthoot George, Mr. George Alexander Muthoot, Mr. Ravindra Pisharody, and Mr. K.V Eapen.

Policies covering all nine NGRBC principles have been approved by the Board and translated into procedures, extending to value chain partners. Performance against these policies is reviewed quarterly by the Managing Director. The company enforces a zero-tolerance Anti-Bribery and Anti-Corruption Policy applicable to all employees, contractual staff, trainees, interns, and third-party stakeholders.

During FY 2025-26, the company received monetary penalties from stock exchanges under Principle 1:

No cases of corruption, conflicts of interest, or anti-competitive conduct were reported during FY 2025-26.

CSR Initiatives and Stakeholder Engagement

Muthoot Finance Limited's CSR initiatives have positively impacted over 700,000 beneficiaries nationwide, spanning healthcare, education, sustainable housing, economic upliftment, livelihood creation, and ecological conservation. Key beneficiary data from CSR projects includes:

CSR spending in designated aspirational districts included projects in Tamil Nadu (Ramanathapuram & Virudhunagar), Hyderabad (Y.S.R. Kadapa), Odisha (Koraput), Jharkhand (Hazaribagh), Uttar Pradesh (Fatehpur), and Uttarakhand (Haridwar).

The company is affiliated with 4 trade and industry chambers, including the Federation of Indian Chamber of Commerce & Industries, Association of Gold Loan Companies, Confederation of Indian Industry, and Kerala Non-Banking Finance Companies Association.

Environmental Commitments and Data Protection

Muthoot Finance Limited's environmental initiatives include a 3.75 MW windmill in Tamil Nadu supplying clean electricity to the grid for over 18 years, solar capacity expansion through CSR projects, replacement of diesel generators with battery inverters, and procurement of refurbished laptops and pre-owned office furniture. The company's primary Data Centre is located in Bangalore, with a secondary Disaster Recovery facility at Info Park, Kochi, both achieving a Recovery Point Objective (RPO) and Recovery Time Objective (RTO) of 15 minutes.

On data protection, the company reported NIL instances of data breaches during FY 2025-26. The company's cybersecurity framework includes multi-layered controls such as firewalls, endpoint protection, access controls, MFA, PAM, DLP, and continuous SOC monitoring, aligned with CERT-IN and RBI guidelines. Consumer grievances are addressed through a structured multi-tier redressal mechanism, with complaints acknowledged within three working days and records retained for ten years post-resolution.

Muthoot Finance Limited will hold its 29th Annual General Meeting (AGM) on Monday, August 31, 2026, at 3:30 PM IST through Video Conferencing (VC) or Other Audio Visual Means (OAVM). The meeting is critical for shareholders as it seeks approval for significant leadership transitions, including the appointment of Alexander George as Managing Director and the reappointment of key executive directors for five-year terms. These resolutions are required under Section 197 of the Companies Act, 2013, and Regulation 17(6) of the SEBI Listing Regulations due to potential remuneration thresholds. The meeting also follows a landmark financial year in which the Company delivered its strongest-ever performance across all principal metrics.

FY 2025-26 Financial Highlights

Muthoot Finance reported record standalone and consolidated results for the financial year ended March 31, 2026. The following table summarises the key standalone performance indicators:

Standalone interest income rose 60% to ₹2,70,670 million. The Company disbursed ₹2,93,471 million in gold loans to 17.71 lakh new customers, its strongest year of new-customer acquisition. Average gold loan AUM per branch rose 46% to ₹310.20 million. Stage III assets improved to 2.35% of the standalone book even as the book expanded by half. The consolidated Gold Loan AUM increased by 54% to ₹16,50,299 million.

Leadership Appointments and Reappointments

The Board of Directors, acting on the recommendation of the Nomination and Remuneration Committee (NRC), has proposed these appointments to ensure continuity and strategic growth. The NRC confirmed that all proposed appointees meet the 'Fit and Proper' criteria prescribed by the Reserve Bank of India. The most material resolution involves the appointment of Mr. Alexander George (DIN: 00938073) as Managing Director, effective October 1, 2026, till March 31, 2031. Mr. George, currently a Whole Time Director, has led operations across North, East, and West India since joining in 2006. Concurrently, Mr. George Alexander Muthoot (DIN: 00016787) will transition to the role of Vice Chairman and Whole Time Director for the same period, focusing on macro-strategic directions and mentoring the next generation of leadership.

Mr. Eapen Alexander (DIN: 03493601), currently Executive Director (IT and Digital Initiatives), will be appointed as a Director liable to retire by rotation and subsequently as Whole Time Director effective October 1, 2026. His appointment aims to broaden the Board's expertise in technology, cybersecurity, and digital transformation.

Board Composition Changes

Shareholders will also vote on the reappointment of Mr. Joseph Korah (DIN: 09128318) as an Independent Director for a second consecutive term of three years, concluding at the 32nd AGM in 2029. Mr. Korah, Co-Founder of Impaqtive, brings expertise in IT strategy and cybersecurity. Additionally, Mr. George Alexander Muthoot and Mr. George Jacob Muthoot seek reappointment as directors liable to retire by rotation.

Subsidiary Performance

The Group's subsidiaries contributed 13% of consolidated AUM, with each extending the gold loan model to adjacent customer segments. Key subsidiary results are summarised below:

Credit Ratings and Funding

During the year, Fitch Ratings upgraded the Company to BB+ (Stable) and Moody's Investors Service to Ba1 (Stable), while CRISIL and ICRA affirmed domestic ratings at AA+ (Stable). Standalone borrowings stood at ₹1.39 trillion, comprising bank and institutional borrowings of ₹6,73,624.62 million, listed non-convertible debentures of ₹3,60,720 million, and external commercial borrowings of ₹2,60,800 million, an increase of 118%.

Voting and Meeting Details

Remote e-voting will commence on Friday, August 28, 2026, at 9:00 AM IST and end on Sunday, August 30, 2026, at 5:00 PM IST. The cut-off date for determining voting entitlement is Monday, August 24, 2026. The Register of Members and Share Transfer Books will remain closed from August 24, 2026, to August 31, 2026. Central Depository Services (India) Limited (CDSL) has been appointed as the authorised agency for e-voting and VC/OAVM facilities. Physical attendance is not permitted, and proxy forms are not available for this meeting. The meeting notice was issued in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE414G01012/ea71885e-e727-4ca2-873e-0b5014b8cb7b.pdf