KOCHI: Kerala-based gold-loan financier Kosamattom Finance reported a strong FY26, with net profit rising 45 per cent to Rs184.8 crore from Rs127 crore in FY25, while assets under management (AUM) grew 35.5 per cent to Rs7,698 crore.
The growth came despite some moderation in yields. Yield on assets declined to 16.3 per cent in Q4 FY26 from 17.59 per cent a year earlier, while return on assets remained broadly stable at 2.04 per cent.
The company's asset quality also remained strong, with credit cost at just 0.02 per cent in Q4 FY26, compared with 0.1 per cent a year earlier. Kosamattom did not report any losses from gold auctions during the year, with the company recovering the entire outstanding principal and interest from the auctions it conducted.
The company maintained a largely stable branch network of 982 branches even as AUM increased sharply, taking AUM per branch to Rs7.84 crore from Rs6.28 crore a year earlier.
Diversified funding
Funding has also become more diversified. The number of banks and financial institutions funding Kosamattom increased substantially over the past few years, while bank borrowings accounted for about 46 per cent of its funding in FY26. The company also raised funds through non-convertible debentures (NCDs) and subordinated debt.
Kosamattom's Tier-1 capital ratio improved to 18.1 per cent from 17.39 per cent, providing a comfortable capital cushion as the company expands.
However, the lender remains geographically concentrated. Around 97 per cent of its AUM is in South India, with Tamil Nadu accounting for about 59 per cent of the gold-loan portfolio.
The strong FY26 performance therefore comes with both positives and challenges: robust AUM and profit growth, very low credit costs and improved capitalisation, but continued dependence on gold lending and a concentrated geographical footprint.
