Muthoot Finance , a leading gold loan NBFC, has set its sights on a 15% loan growth for the fiscal year 2026, buoyed by robust demand for gold loans, rising gold prices, and favorable regulatory changes. The company's optimistic outlook comes on the heels of an impressive financial performance in the first quarter of FY26.

Strong Q1 FY26 Performance

Muthoot Finance reported stellar results for Q1 FY26, with key highlights including:

Factors Driving Growth

Managing Director George Alexander Muthoot attributed the company's growth prospects to several factors:

1. Strong Demand for Gold Loans: Tighter unsecured credit availability from banks and NBFCs has led customers to opt for gold loans.
2. Rising Gold Prices: The upward trend in gold prices has positively impacted the loan-to-value ratios.
3. Regulatory Support: The Reserve Bank of India's simplified norms for gold loans up to ₹2.5 lakh have provided additional growth impetus.

Historical Performance and Future Outlook

Muthoot Finance has a track record of exceeding its growth projections:

• Achieved 40% growth in the previous year
• Recorded 25% growth in the year before that

While the company has set a 15% loan growth target for FY26, its historical performance suggests the potential for outperformance.

Market Response

Investors responded positively to the company's performance and outlook. Muthoot Finance's shares closed 9.75% higher at ₹2,754.00 on the National Stock Exchange (NSE).

Recent Developments

As per the company's latest LODR (Listing Obligations and Disclosure Requirements) filing, Muthoot Finance published its unaudited financial results for the quarter ended June 30, 2025, in major newspapers on August 15, 2025. This timely disclosure aligns with the company's commitment to transparency and regulatory compliance.

Muthoot Finance's strong Q1 performance and optimistic growth outlook for FY26 reflect the company's robust position in the gold loan market. As the financial landscape continues to evolve, the company appears well-positioned to capitalize on the growing demand for gold loans and favorable market conditions.

Muthoot Finance , India's largest gold financing company, has reported stellar financial results for the first quarter, showcasing robust growth across key metrics.

Record-Breaking Performance

The company achieved its highest ever standalone profit after tax of ₹2,046.00 crores, marking a substantial 90% year-over-year increase. This impressive growth was underpinned by a 42% rise in standalone loan assets under management (AUM), which reached ₹1,20,031.00 crores.

Gold Loan Portfolio Expansion

Muthoot Finance's core gold loan business continued to drive growth, with gold loan AUM expanding by 40% year-over-year to ₹1,13,194.00 crores. The company also reported its highest ever average gold loan AUM per branch at ₹23.21 crores.

Key Financial Highlights

• Total income rose by 54% to ₹5,720.00 crores
• Profit before tax increased by 84% to ₹2,745.00 crores
• Earnings per share (EPS) grew to ₹50.97, up from ₹26.87 in the previous year's Q1

Operational Metrics

The company's operational efficiency remained strong:

Customer Base and Gold Holdings

Muthoot Finance continued to expand its customer reach:

• Gold loan disbursements to new customers amounted to ₹6,355.00 crores, serving 4,45,481 customers
• The company held 209 tonnes of gold jewellery as security, marking its highest ever quantity

Subsidiary Performance

The company's subsidiaries also showed positive results:

• Muthoot Homefin reported a 41% increase in loan AUM to ₹3,096.00 crores
• Muthoot Money saw a significant 202% growth in loan AUM, reaching ₹5,000.00 crores

Management Commentary

George Alexander Muthoot, Managing Director, stated, "We had an impressive start to the year with our Standalone Loan Assets Under Management reaching a historic high of ₹1,20,031.00 crores, driven by robust 40% YoY growth in gold loan of ₹32,272.00 crores and a 10% QoQ increase of ₹10,238.00 crores. This growth is a testament to our three-pronged strategy to focus on disbursements, operational efficiency, and maintaining healthy margins."

He added, "Looking ahead, we are accelerating our efforts to digitally enable our gold loan offerings, making credit access faster, more seamless, and more inclusive. Our technology investments are already enhancing customer experience, reducing turnaround times, and strengthening operational efficiency."

Market Position

Muthoot Finance's market capitalization crossed the ₹1 trillion mark, reflecting investor confidence in the company's growth trajectory and financial performance.

The company's strong Q1 results underscore its leadership in the gold loan segment and its ability to capitalize on the growing demand for quick, reliable, and affordable credit in India's evolving financial landscape.