News Earnings Muthoot Finance Reports Record Q3 FY26 Performance with 50% Gold Loan Portfolio GrowthMuthoot Finance Reports Record Q3 FY26 Performance with 50% Gold Loan Portfolio Growth
Muthoot Finance achieved record Q3 FY26 performance with standalone AUM reaching historic INR50,000 crores, driven by 50% YoY gold loan growth. The gold loan portfolio reached INR1,39,658 crores with INR36,700 crores increase over 9 months. Standalone PAT surged 91% to INR7,048 crores, reflecting strong demand for collateralized lending. Subsidiaries showed positive momentum with Muthoot Money achieving 168% portfolio growth and Belstar Microfinance posting Q3 turnaround.
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Muthoot Finance delivered exceptional financial performance in Q3 FY26, marking a historic milestone with its standalone Assets Under Management (AUM) reaching INR50,000 crores. The achievement was driven by robust 50% year-on-year growth in the company's core gold loan portfolio, demonstrating strong market demand for collateralized lending solutions.
Record-Breaking Gold Loan Performance
The company's standalone gold loan portfolio achieved remarkable growth, reaching INR1,39,658 crores with an increase of INR36,700 crores over the 9-month period ended December 31, 2025. This performance aligns with accelerated demand for gold loans, particularly evident during the festive season.
| Financial Metric | 9 Months FY26 | Growth |
|---|---|---|
| Standalone AUM | INR50,000 crores | Historic milestone |
| Gold Loan Portfolio | INR1,39,658 crores | +INR36,700 crores |
| Standalone PAT | INR7,048 crores | +91% YoY |
| Gold Loan Growth | - | 50% YoY |
Managing Director George Alexander Muthoot highlighted the increasing customer acceptance of gold loans as a convenient, trusted, and secure credit solution for a diverse customer base, including salaried individuals, self-employed professionals, and small business owners. The higher price of gold has further empowered customers to unlock greater value from their existing assets.
Subsidiary Performance and Diversification
Muthoot Finance's subsidiaries demonstrated strong operational performance across various business segments. Muthoot Home Loan, the company's 100% subsidiary, achieved an AUM of INR3,380 crores in 9 months, showing 24% year-on-year growth.
| Subsidiary | Key Metrics | Performance |
|---|---|---|
| Muthoot Home Loan AUM | INR3,380 crores | +24% YoY |
| Muthoot Home Loan Revenue | INR339 crores | +38% YoY |
| Muthoot Home Loan PAT | INR19 crores | 9 months |
| Stage 3 Assets | 2.32% | December 2025 |
Belstar Microfinance, where Muthoot Finance holds a 66.13% stake, achieved a significant turnaround in Q3 with a profit after tax of INR51 crores, offsetting the H1 loss of INR160 crores. The loan AUM stood at INR7,911 crores with total revenue of INR1,312 crores for the 9 months.
Muthoot Money's Exceptional Growth
Muthoot Money, which became a wholly owned subsidiary in October 2018, delivered outstanding performance with its loan portfolio reaching INR8,003 crores compared to INR2,982 crores in the previous year, representing a 168% increase.
| Muthoot Money Metrics | Current Period | Previous Year | Growth |
|---|---|---|---|
| Loan Portfolio | INR8,003 crores | INR2,982 crores | +168% |
| AUM Increase (9 months) | INR4,001 crores | - | +105% |
| Total Revenue | INR862 crores | INR268 crores | Significant increase |
| PAT | INR203 crores | Loss of INR2 crores | Turnaround |
Interest Income and Recovery Performance
The company reported substantial interest income from legacy NPA recoveries during the quarter. Legacy NPA of approximately INR950 crores was closed by customers, while new NPA of INR342 crores was recorded, resulting in net NPA reduction of INR556 crores. The interest earned on legacy NPA minus derecognized NPA amounted to approximately INR500 crores.
Additionally, the company realized INR120 crores through auctions and INR24 crores from Asset Reconstruction Company (ARC) contributions, contributing to the overall interest income performance.
Regulatory Environment and Future Outlook
The Reserve Bank of India recently issued draft regulations that would allow branch opening without prior permission, addressing a long-standing request from the industry. This development is expected to provide significant operational flexibility for Muthoot Finance and its subsidiary Muthoot Money, which currently operates approximately 1,000 branches.
The company views this regulatory support as a positive step toward growing the gold loan business across India and helping the government put purchasing power in people's hands while monetizing idle gold assets. With nearly 5,000 branches under Muthoot Finance and about 1,000 branches under Muthoot Money, the company is well-positioned to capitalize on opportunities in the gold loan sector.
Risk Management and Asset Quality
Muthoot Finance maintains conservative lending practices with the current loan-to-value ratio at only 57% of the outstanding portfolio at current gold prices, well below the regulatory limit of 75%. This provides substantial margin for price volatility protection. The company's focus on gold ornaments, which carry making charges of 15-20%, provides additional security through higher replacement costs and sentimental value for customers.
Historical Stock Returns for Muthoot Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.12% | -10.95% | -12.17% | +25.37% | +54.06% | +161.20% |
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