Muthoot Finance reports strong Q2 FY'26 results, raises gold loan growth guidance

Muthoot Finance Limited reported robust unaudited financial results for Q2 FY'26, with consolidated loan assets under management soaring 42% year-on-year to INR 1,47,673 crores. The company's consolidated profit after tax surged 74% year-on-year to INR 4,386 crores for the half-year. Standalone profit after tax also increased by 88% to INR 4,391 crores for the half-year and 87% to INR 2,345 crores for Q2 FY'26. Gold loan AUM alone grew by 10% in Q2 FY'26, reaching INR 11,723 crores.

The company is upgrading its financial year '26 gold loan growth guidance from 50% to 30%-35%, attributing this to favorable regulatory changes, higher gold prices, and stricter norms for unsecured credit, which are expected to boost gold loan demand. The non-gold loan portfolio, including microfinance, constitutes 12%-15% of the consolidated loan board portfolio and is also slated for continued expansion.

Subsidiaries also contributed to growth, with Muthoot Home Finance's AUM rising 44% to INR 3,247 crores, and Muthoot Money Limited's loan portfolio increasing 63% to INR 6,393 crores, achieving a profit after tax of INR 106 crores. Belstar Microfinance saw narrowing losses, from INR 128 crores in Q1 to INR 32 crores in Q2, and is diversifying its portfolio by opening 23 gold loan branches.