Muthoot Finance , one of India's leading gold loan NBFCs, has reported a remarkable financial performance for the half-year ended September 2025, with a significant boost in profitability and loan assets under management. The company has also revised its growth outlook for gold loans, citing favorable market conditions.

Financial Highlights

• Profit After Tax: Muthoot Finance's standalone profit after tax jumped by 88% year-on-year to Rs. 4,391.00 crores for the half-year period.
• Loan Assets Under Management: The company witnessed a robust 47% growth in loan assets under management, reaching Rs. 1,32,305.00 crores.
• Quarterly Performance: For the quarter ended September 2025, the company reported a net profit of Rs. 2,345.20 crores, marking a 14.61% increase from the previous quarter and an 87.45% rise from the same quarter last year.

Upgraded Growth Guidance

Muthoot Finance has revised its gold loan growth guidance for the financial year 2026:

• Previous Guidance: 50% growth
• Updated Guidance: 30%-35% growth

The company attributes this optimistic outlook to several factors:

1. Favorable regulatory changes
2. Higher gold prices
3. Tighter norms for unsecured credit

Financial Performance Analysis

The company's financial metrics show strong growth across all key areas, with significant year-on-year improvements in revenue, EBITDA, and net profit.

Operational Efficiency

Muthoot Finance has maintained a high operating profit margin (OPM) of 84.9% in the latest quarter, indicating efficient management of operational costs despite the rapid growth in loan assets.

Market Position and Future Outlook

The substantial growth in loan assets under management and the upgraded growth guidance for gold loans suggest that Muthoot Finance is well-positioned to capitalize on the current market dynamics. The company's focus on gold loans, coupled with favorable external factors such as regulatory changes and higher gold prices, appears to be driving its robust financial performance.

As the company continues to expand its loan book and maintain strong profitability, investors and market watchers will likely keep a close eye on Muthoot Finance's ability to sustain this growth trajectory in the coming quarters, especially given the evolving landscape of the NBFC sector and the gold loan market in India.

Muthoot Finance Limited , India's largest gold financing company, has reported a robust performance for the second quarter, with significant growth in both standalone and consolidated financials.

Strong Standalone Performance

Muthoot Finance's standalone profit after tax for Q2 surged by 87% year-over-year to Rs. 2,345.00 crores, compared to Rs. 1,251.00 crores in the same quarter of the previous year. The company's total income for the quarter stood at Rs. 6,461.00 crores, marking a 57% increase from the previous year.

Gold Loan Portfolio Expansion

The company's core business of gold loans witnessed substantial growth:

• Gold Loan Assets Under Management (AUM) reached Rs. 1,24,918.00 crores, up 45% YoY
• Average Gold Loan per Branch increased to Rs. 25.15 crores
• Total weight of gold jewellery pledged rose to 209 tonnes, up from 199 tonnes YoY

Key Financial Metrics

Consolidated Performance

On a consolidated basis, Muthoot Finance reported:

• Loan Assets Under Management of Rs. 1,47,673.00 crores, up 42% YoY
• Consolidated profit of Rs. 2,412.00 crores for Q2, an 83% increase from the same quarter of the previous year

Subsidiary Performance

Muthoot Homefin (India) Ltd saw a 33% YoY increase in Loan AUM to Rs. 3,247.00 crores. Muthoot Money Ltd reported a significant turnaround with a profit of Rs. 106.00 crores in H1 compared to a loss of Rs. 5.00 crores in H1 of the previous year.

Management Commentary

George Alexander Muthoot, Managing Director, stated, "We are delighted to report another strong quarter, with Standalone Loan Assets Under Management rising to Rs. 1,32,305.00 crores, up 47% year-on-year and 10% quarter-on-quarter. This steady trajectory highlights the resilience of our business model and the continued trust of our customers."

He added, "In view of this performance, we are upgrading our gold loan growth guidance from 15% to 30-35%. Favorable regulatory changes by the RBI for the gold loan sector, higher gold prices, and tighter norms for unsecured credit are expected to boost gold loan demand."

Future Outlook

Muthoot Finance plans to continue expanding its non-gold loan portfolio, including personal loans, home loans, and business loans, while maintaining the total non-gold loan AUM, including microfinance, at about 12-15% of the consolidated loan portfolio. The company is also accelerating its digital transformation to deliver faster, more seamless credit access for customers nationwide.

With an enhanced branch network, a trusted brand, and sustained investment in technology and innovation, Muthoot Finance appears well-positioned for continued growth.