Muthoot Capital Services Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance with revenue growth offset by reduced profitability. The company's Board of Directors approved these results at their meeting held on January 21, 2026.

Financial Performance Overview

The company's financial results for Q3FY26 demonstrate contrasting trends in revenue and profitability metrics. While revenue from operations showed substantial growth, the bottom line reflected challenges in the operating environment.

Revenue Components and Growth

The company's revenue structure showed positive momentum across key income streams. Interest income, the primary revenue driver, increased to ₹14,830.00 crores from ₹11,983.22 crores in the corresponding quarter of the previous year. Fees and charges income also contributed positively, rising to ₹666.72 crores from ₹568.15 crores. Other operating income remained relatively stable at ₹9.93 crores compared to ₹16.74 crores in Q3FY25.

Expense Analysis and Profitability Impact

Total expenses for the quarter increased significantly to ₹15,062.17 crores from ₹10,885.41 crores in Q3FY25. The major expense components reflected the challenging operating environment:

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported total revenue from operations of ₹45,394.13 crores compared to ₹33,433.80 crores in the corresponding period of the previous year. Net profit for the nine-month period was ₹580.79 crores, significantly lower than ₹3,932.76 crores achieved in the same period of FY25.

Key Operational Metrics

The company's asset quality metrics and operational parameters showed specific trends. Gross NPA including interest accrual stood at ₹21,918.20 crores, while net NPA was ₹12,024.56 crores. The GNPA ratio to advances was 6.45%, and the provision coverage ratio was maintained at 50%. Total advances reached ₹3,39,895.11 crores.

Leadership Appointments

The Board approved significant leadership changes during the quarter. Mr. Krishnaraj S was appointed as Chief Internal Auditor for three years effective January 21, 2026. He brings over 19 years of experience in finance and risk management, including his previous role as Chief Risk Officer at Nitta Gelatin India Limited. Additionally, Mrs. Umadevi Pazhoor Unnikrishnan was re-appointed as Chief Risk Officer for three years effective March 22, 2026, leveraging her 18 years of banking experience in credit appraisal and risk management.

Earnings Per Share and Other Highlights

Basic and diluted earnings per share for Q3FY26 were ₹4.65 compared to ₹7.63 in Q3FY25. The company maintained its paid-up equity share capital at ₹1,644.75 crores. Total comprehensive income for the quarter was ₹843.39 crores, including other comprehensive income of ₹78.33 crores.

Source:

Muthoot Capital Services Limited has successfully completed a securitization transaction, raising ₹57.44 crores on January 1, 2026. The transaction involved the assignment of two-wheeler loan receivables and represents the company's fourth such transaction during the current financial year 2025-26.

Transaction Details

The securitization was structured in multiple tranches, with the company raising funds through the assignment of loan receivables. The following table summarizes the key financial parameters:

Loan Portfolio Composition

The securitized portfolio consists entirely of two-wheeler loans from the non-priority sector. Muthoot Capital Services has ensured compliance with Reserve Bank of India guidelines in structuring this transaction. The company has maintained adherence to regulatory requirements while executing this fund-raising initiative.

Regulatory Compliance

The company has informed both stock exchanges about this transaction pursuant to Regulation 30 and 51 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made through official communication to:

• BSE Limited: Under scrip code 511766
• National Stock Exchange: Under trading symbol MUTHOOTCAP

Strategic Significance

This securitization represents Muthoot Capital Services' continued focus on diversifying its funding sources during FY 2025-26. The transaction demonstrates the company's ability to monetize its loan portfolio while maintaining regulatory compliance. The successful completion of four such transactions within the current financial year indicates consistent execution of the company's funding strategy.

The securitization of two-wheeler loans aligns with the company's core business focus while providing additional liquidity for future growth initiatives. The transaction was completed with appropriate documentation and regulatory approvals, ensuring transparency in the fund-raising process.