Muthoot Finance Profit Doubles, Lifts Loan Growth Guidance to 45%

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AuthorSimar Singh|Published at:
Muthoot Finance Profit Doubles, Lifts Loan Growth Guidance to 45%
Overview

Muthoot Finance reported a nearly doubled net profit of Rs 2,656 crore in the third quarter, driven by robust interest income and record gold loan disbursements. Revenue surged 64% year-on-year to Rs 7,243 crore. The NBFC's standalone loan AUM hit an all-time high of Rs 1.48 lakh crore, prompting management to aggressively raise its full-year FY26 loan growth guidance to 45% from 30-35%.

Robust Q3 Performance Fuels Optimism

Muthoot Finance announced a striking nearly 100% surge in its standalone net profit for the third quarter, reaching Rs 2,656 crore. This performance was largely propelled by a significant increase in interest income, which climbed 63% year-on-year to Rs 7,114 crore. Total revenue from operations leaped 64% to Rs 7,243 crore.

Record AUM and Upgraded Guidance

The company's Assets Under Management (AUM) across all loans reached an unprecedented Rs 1.48 lakh crore as of nine months into FY26, marking a 51% year-on-year increase. Gold loan AUM alone saw a substantial Rs 14,740 crore rise in Q3, a 12% sequential jump. Surpassing earlier projections, the loan AUM growth for the nine-month period stood at 36%. This strong momentum has led Muthoot Finance to revise its full-year FY26 loan growth forecast upward to 45%, a significant increase from the previously guided 30-35% range.

Driving Factors and Regulatory Tailwinds

Managing Director George Alexander Muthoot attributed the surging demand for gold loans to a tightening credit environment for unsecured personal loans, persistent stress in the microfinance sector, and limited availability of collateral-free business loans. He noted that customers are increasingly leveraging their gold ornaments for accessible credit. The Reserve Bank of India's recent decision to scrap prior approval for branch expansion for large gold loan NBFCs was also highlighted as a positive regulatory development, signaling confidence in established players and supporting the sector's growth.

Consolidated Growth and Subsidiary Performance

On a consolidated basis, which includes subsidiaries like Muthoot Homefin, Belstar Microfinance, and Muthoot Insurance Brokers, the loan AUM touched Rs 1.65 lakh crore by Q3FY26. Belstar Microfinance, in particular, returned to profitability with a net profit of Rs 51 crore, reversing prior quarter losses. Muthoot Money also demonstrated strong performance, tripling its loan portfolio to Rs 8,003 crore. Shares of Muthoot Finance closed the trading session 3% higher at Rs 4,070 on the National Stock Exchange.

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