KOCHI: Muthoot Finance Ltd reported a 27 per cent year-on-year increase in standalone net profit to Rs2,977 crore for the second quarter of FY27, supported by strong growth in its gold loan portfolio.
Standalone loan assets under management (AUM) rose 42 per cent to Rs1,87,810 crore as of September 30, 2026, compared with Rs1,32,305 crore a year earlier. Total income increased 37 per cent to Rs8,842 crore during the quarter, while profit before tax (PBT) grew 27 per cent to Rs3,993 crore.
The company’s consolidated performance was also strong, with profit rising 36 per cent year-on-year to Rs3,278 crore in Q2 FY27, against Rs2,412 crore in the corresponding quarter last year. Consolidated loan AUM expanded 42 per cent to Rs2,09,317 crore.
Gold loans remained the principal growth driver. Standalone gold loan AUM increased 43 per cent year-on-year to Rs1,78,956 crore at the end of September. On a consolidated basis, gold loan AUM grew 46 per cent to Rs1,93,212 crore.
Muthoot Finance said it disbursed Rs20,238 crore in gold loans to nearly 9.94 lakh new customers during the first half of FY27. The quantity of gold held as security in its lockers increased to 204 tonnes from 196 tonnes over the six-month period. Its number of active customers rose from 64 lakh to 69 lakh.
201 new branches
The company added 201 branches during the September quarter, taking its standalone branch network to 5,230. Its average gold loan AUM per branch increased to about Rs34 crore in the first half of FY27, from Rs25.15 crore a year earlier.
Muthoot Finance has also raised its gold loan growth guidance for FY27 by an additional 10 per cent, according to Managing Director Alexander George Muthoot. He said the Reserve Bank of India’s (RBI) revised gold lending guidelines, effective April 1, 2026, would involve a learning curve for both the company and its customers, with the process expected to stabilise over the coming quarters.
Belstar returns to profitability
At the group level, subsidiaries contributed Rs25,617 crore, or about 12 per cent, of consolidated loan AUM. Belstar Microfinance, in which Muthoot Finance holds a 66.13 per cent stake, returned to profitability, posting a net profit of Rs78 crore in Q2 FY27 against a loss of Rs160 crore in the year-ago quarter.
Its gross non-performing loan assets improved to 3.26 per cent at the end of September from 4.58 per cent a year earlier.
Muthoot Money Ltd, the group’s gold-loan-focused subsidiary, recorded a 99 per cent year-on-year increase in loan AUM to Rs12,716 crore for the first half of FY27. Its net profit rose to Rs364 crore from Rs106 crore in the year-ago period.
The board has approved the merger of Muthoot Money with Muthoot Finance, with an appointed date of April 1, 2027, subject to regulatory and other approvals. The company said the consolidation was intended to simplify the group structure and improve operational and financial efficiencies.
