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 at ₹1,32,305 crore (47% YoY growth) and gold loan AUM at ₹1,24,918 crore (45% YoY growth).

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

• Subsidiaries showed strong growth: Muthoot Homefin AUM up 33%, Muthoot Money AUM up 182%, Asia Asset Finance AUM up 48%, while Belstar Microfinance faced losses and higher GNPA.

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

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

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.

• EPS (Basic & Diluted) for H1 FY26 stood at ₹110.52, up from ₹60.67 YoY.

• Net Interest Margin (NIM) for H1 FY26 at 11.45%; Return on Average Loan Assets at 5.70%.

• Yield on assets increased from 19.56% to 19.99% QoQ, mainly due to NPA recoveries; steady-state yields expected at 18%-18.5%.

• Auction volumes remained minimal at ₹5 crore in Q2, down from ₹13 crore in Q1.

Outlook and guidance

• FY26 gold loan growth guidance upgraded from 15% to 30-35% due to favorable regulatory changes, higher gold prices, and increased demand.

• Non-gold loan AUM (including microfinance) to be maintained at 12-15% of consolidated portfolio.

• Focus on digital transformation, rural and semi-urban expansion, and leveraging strong liquidity and capital position.