Muthoot Finance (MUTHOOTFIN) Q2 25/26 earnings summary

Executive summary

• Consolidated loan AUM reached ₹1,47,673 crore for H1 FY26, up 42% YoY, with standalone loan AUM up 47% and gold loan AUM up 45% YoY.

• Consolidated PAT rose 74% YoY to ₹4,386 crore for H1 FY26; standalone PAT increased 88% to ₹4,391 crore.

• Fitch upgraded international credit rating to 'BB+' with a stable outlook.

• Subsidiaries showed strong growth: Muthoot Homefin AUM up 33%, Muthoot Money AUM up 182%, Asia Asset Finance AUM up 48%.

• Upgraded FY26 gold loan growth guidance from 30% to 35% due to favorable regulatory changes and higher gold prices.

Financial highlights

• Standalone total income for H1 FY26 was ₹12,181 crore, up 55% YoY; consolidated interest income was ₹1,33,793 Mn, up 47% YoY.

• Gold loan disbursement to new customers was ₹13,183 crore to 8,90,920 customers; gold held as security increased to 209 tonnes.

• Muthoot Homefin AUM at ₹3,247 crore (33% YoY growth), PAT at ₹10 crore.

• Belstar Microfinance AUM at ₹7,717 crore, revenue ₹840 crore, loss narrowed to ₹32 crore in Q2; GNPA at 4.58%.

• Muthoot Money Limited loan portfolio up 182% to ₹6,393 crore, PAT at ₹106 crore.

Outlook and guidance

• FY26 gold loan growth guidance raised to 35% on the back of regulatory tailwinds and higher gold prices.

• Non-gold loan portfolio (including personal and microfinance) constitutes 12%-15% of consolidated loans, with plans for further expansion.

• Focus on leveraging digital initiatives and expanding rural and semi-urban reach.

• Microfinance sector expected to stabilize over the next two quarters, with growth resuming thereafter.

• Cost of funds expected to decline by 15-20 basis points over the next two quarters.