Muthoot Finance , a leading gold loan company, has reported impressive financial results for the quarter ended June 30, showcasing robust growth across key metrics.

Record Assets Under Management

The company achieved a record standalone Assets Under Management (AUM) of ₹1,20,031.00 crores, driven by a substantial 40% year-on-year growth in gold loans. This growth amounted to ₹32,272.00 crores for the full year, with a notable 10% quarter-on-quarter increase of ₹10,238.00 crores.

Stellar Profit Growth

Muthoot Finance's standalone Profit After Tax (PAT) for the quarter surged by 90% to reach ₹2,046.00 crores, underscoring the company's strong financial performance.

Gold Loan Business Expansion

The company's gold loan AUM witnessed a significant 10% quarter-on-quarter growth to ₹10,238.00 crores. This growth was accompanied by a 100 basis points expansion in yield to 19.56%, attributed to Non-Performing Asset (NPA) recoveries and Asset Reconstruction Company (ARC) collections.

Improved Asset Quality

Muthoot Finance successfully reduced its NPAs by ₹700.00 crores quarter-on-quarter, demonstrating effective management of asset quality. The company also continued its expansion by opening 22 new branches during the period.

Subsidiary Performance

The company's subsidiaries also showed strong performance:

• Muthoot Home Finance: AUM grew by 41% year-on-year to ₹3,096.00 crores
• Muthoot Money: AUM surged by 202% year-on-year to ₹5,000.00 crores

Market Capitalization Milestone

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

Management Outlook

The management expressed optimism about sustaining growth, citing favorable new RBI guidelines that allow higher loan-to-value ratios of 85% for loans up to ₹2.50 lakhs.

Financial Performance Insights

• The company's yield expanded to 19.56%, with approximately ₹400.00 crores of additional interest income from NPA recoveries and ARC collections.
• Muthoot Finance maintains a strong capital position with a Capital to Risk-weighted Assets Ratio (CRAR) of around 22%.
• The company's focus remains on gold loans, with non-gold loan business comprising about 13-14% of the portfolio.

Customer Base and Loan Distribution

• 85% of Muthoot Finance's customers have loan amounts below ₹2.50 lakhs.
• Loans above ₹3.00 lakhs constitute 40% of the AUM, while loans between ₹1.00 lakh to ₹3.00 lakhs make up 34%, and loans below ₹1.00 lakh account for 26%.

Future Outlook

Muthoot Finance remains committed to its core gold loan business while also seeing growth opportunities in its subsidiaries. The company plans to maintain its spread of 9.5% and pass on any benefits from reduced borrowing costs to customers.

As per the transcript of the analyst call, the management reaffirmed its leadership in the gold loan segment, supported by a pan-India branch network, strong brand equity, and deeper customer engagement. The company is also accelerating efforts to digitally enable its gold loan offerings, aiming to make credit access faster, more seamless, and more inclusive.

With a strong start to the fiscal year and favorable regulatory changes, Muthoot Finance appears well-positioned to capitalize on the growing acceptance of gold loans as a reliable and accessible form of credit in the Indian market.

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.