Muthoot Finance on Thursday reported an 87% year-on-year jump in its standalone net profit for the second quarter at ₹2,345 crore, driven by a strong growth in interest income following record gold loan disbursements. Standalone revenue from operations rose 56% year-on-year to ₹6,432 crore, led by a 55% increase in interest income to ₹6,304 crore.
The board of directors has approved incremental fundraising of up to ₹35,000 crore through issuance of non-convertible debentures (NCDs) via private placement in multiple tranches from time to time.
The strong growth in revenue, profit and disbursements prompted the company to double its full-year disbursement growth guidance to 30–35%.
“We are upgrading our FY26 gold loan growth guidance from 15% to 30–35%,” said Managing Director George Alexander Muthoot in the earnings call. He added that favourable regulatory changes by the RBI for the gold loan sector, higher gold prices, and tighter norms for unsecured credit are expected to boost gold loan demand.
The company’s standalone loan AUM touched an all-time high of ₹1.32 lakh crore as of H1FY26, up 47% year-on-year. During the first half, loan AUM rose by ₹23,657 crore. Gold loan AUM also reached a record ₹1.25 lakh crore as of September 2025, growing 45% year-on-year, or ₹38,754 crore in absolute terms. During Q2FY26, gold loan AUM expanded by ₹11,723 crore, registering a 10% sequential growth.
At the consolidated level, the net profit rose 83% year-on-year to a record ₹2,417 crore, while interest income grew 48% to ₹7,091 crore. Consolidated loan AUM reached an all-time high of ₹1.48 lakh crore as of Q2FY26, up ₹25,493 crore or 21% during the first half.
The consolidated results include the core gold loan business of Muthoot Finance and its subsidiaries — Muthoot Homefin, Belstar Microfinance, and Muthoot Insurance Brokers.
Muthoot said the company will continue to expand its non-gold loan portfolio, including personal, home, and business loans, while maintaining total non-gold loan AUM, including microfinance, at about 12–15% of the consolidated loan portfolio.
Belstar Microfinance, the microfinance subsidiary, reported a net loss of ₹32 crore, against a net profit of ₹53 crore in the same quarter last year. However, the loss narrowed sequentially from ₹128 crore. “The microfinance sector is showing renewed resilience following the implementation of regulatory guardrails and improved underwriting, auguring well for future performance,” Muthoot said.
Belstar’s total revenue declined to ₹426 crore from ₹592 crore a year ago. Stage 3 loans as a percentage of gross loan assets inched up to 4.58% from 4.44% in Q1FY26. “Consequent to the RBI allowing microfinance companies to have 40% non-microfinance loan portfolio, Belstar has opened 23 gold loan branches in H1FY26 to diversify the loan product portfolio,” Muthoot said. The MFI loan AUM dropped to ₹7,771 crore from ₹9,625 crore a year earlier.
Muthoot Money, another subsidiary, saw its loan portfolio triple to ₹6,393 crore in the quarter under review. Total revenue jumped to ₹288 crore from ₹85 crore, while the entity posted a profit of ₹69 crore against a net loss of ₹4 crore in the previous year. The board has also approved an equity infusion of ₹500 crore in Muthoot Money.
Shares of Muthoot Finance on Thursday closed 2% higher at ₹3,400 on the NSE.