Muthoot Finance (MUTHOOTFIN) Q1 25/26 earnings summary

Executive summary

• Achieved record consolidated loan AUM of ₹1,33,938 crore, up 37% YoY, and standalone loan AUM of ₹1,20,031 crore, up 42% YoY, with gold loan AUM up 40% YoY to ₹1,13,194 crore.

• Consolidated profit after tax reached an all-time high of ₹1,974 crore, a 65% YoY increase; standalone PAT at ₹2,046 crore, up 90% YoY.

• Technology investments and digital enablement, including mobile app, UPI payments, and AI chatbot, are enhancing customer experience and operational efficiency.

• Market capitalization crossed ₹1 trillion, reflecting strong investor confidence and market leadership.

• Opened 22 new branches in Q1 FY26; branch network expanded to 7,413 locations with a rural and semi-urban focus.

Financial highlights

• Standalone total income for Q1 FY26 was ₹5,720 crore, up 54% YoY; profit before tax at ₹2,745 crore, up 84% YoY.

• Yield expanded by 100 bps sequentially to 19.56%, mainly due to ₹400 crore in exceptional interest income from NPA and ARC recoveries.

• Standalone interest income grew 53% YoY to ₹55,923 Mn; finance cost increased 48% YoY to ₹23,549 Mn.

• Earnings per share (basic/diluted) for Q1 FY26 at ₹50.22–₹50.97, up 73%–90% YoY.

• Dividend payout ratio for FY25 at 20%, with a payout of ₹10,438 Mn; interim dividend of ₹26 per share declared for FY25.

Outlook and guidance

• Management expects to sustain strong growth through FY2025 and beyond, supported by digital transformation and favorable regulatory changes.

• Focus remains on gold loans, digital initiatives, and expanding rural and semi-urban presence.

• Cost of funds is expected to decline further, with benefits likely to be passed on to customers while maintaining a spread of 9.5%.

• OpEx is expected to remain stable, increasing only at the rate of inflation as per branch business grows.

• Strong liquidity and capital adequacy (21.96% as of June 2025) support future growth.