Muthoot FinCorp's Profit Skyrockets 59%! ₹430 Cr Net Profit Reported for Q2 FY26

Banking/Finance

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Updated on 12 Nov 2025, 05:36 pm

Muthoot FinCorp Ltd reported strong financial results for the quarter ending September 2025 (Q2 FY26), with its consolidated net profit surging by 59.56% year-on-year to ₹429.81 crore. The company's consolidated revenue also saw robust growth, increasing by 28.38% to ₹2,712.13 crore.

For the first half of the fiscal year 2026 (H1 FY26), Muthoot FinCorp's consolidated assets under management (AUM) stood at ₹55,707.53 crore. The profit after tax (PAT) for the H1 FY26 was ₹630.36 crore, and consolidated revenue amounted to ₹4,972.54 crore.

On a standalone basis, the company posted even higher growth rates for Q2 FY26, with revenue increasing by 48.19% and PAT growing by a remarkable 95.95% compared to the same quarter last year.

Muthoot FinCorp maintained excellent asset quality, reporting gross non-performing assets (GNPA) at 1.41% and net non-performing assets (NNPA) at 0.76%. Key profitability indicators showed substantial improvement: return on assets (ROA) rose to 3.52% (up 45 basis points), and return on equity (ROE) improved significantly to 27.05% (up 454 basis points).

Impact This strong financial performance is highly positive for Muthoot FinCorp and suggests robust operational efficiency and prudent risk management. It is likely to enhance investor confidence in the company and the broader Non-Banking Financial Company (NBFC) sector. The growth in AUM and improved profitability metrics are strong indicators of the company's expanding business and financial health, potentially leading to favorable market sentiment for its future prospects. Rating: 7/10

Difficult Terms - Consolidated: Financial statements that combine the accounts of a parent company and its subsidiaries, presenting them as if they were a single entity. - Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from the total revenue. - Year-on-year (YoY): A comparison of a company's performance metrics over a period (like a quarter) with the same period in the previous year. - Revenue: The total income generated from the company's primary business operations before deducting expenses. - Assets Under Management (AUM): The total market value of all financial assets that a fund manager or financial institution manages on behalf of its clients. For NBFCs, it represents the total value of loans given out. - Profit After Tax (PAT): Same as Net Profit. - Standalone: Financial statements that report the performance of a single legal entity, without including the results of its subsidiaries or parent company. - Gross Non-Performing Assets (GNPA): The total value of loans on which borrowers have defaulted on payments for a specified period (usually 90 days). - Net Non-Performing Assets (NNPA): GNPA minus the provisions made by the bank or NBFC for these bad loans. It represents the actual bad loans the company has to absorb. - Return on Assets (ROA): A profitability ratio that measures how efficiently a company uses its assets to generate profit. It's calculated as Net Profit divided by Total Assets. - Return on Equity (ROE): A profitability ratio that measures how effectively a company uses shareholder investments to generate profits. It's calculated as Net Profit divided by Shareholder's Equity. - Basis Points (bps): A unit of measure used in finance to denote the percentage change in a financial instrument or interest rate. 1 basis point is equal to 0.01% or 1/100th of a percent.