Muthoot Finance reported an 87.5% jump in Q2FY26 profit, aided by higher loan demand amid soaring prices of the precious metal.
Indian gold loan financier reported standalone profit at Rs 2,345.17 crore from Rs 1251.14 crore reported in Q2FY25. Its interest income rose about 55% to Rs 6,304.36 crore.
Gold prices touched multiple record highs during the quarter, increasing the value of gold holdings and benefiting lenders in the sector. The rally enhanced collateral values, enabling borrowers to avail larger loans.
Meanwhile, tighter credit conditions in the unsecured lending space prompted more borrowers to turn to gold loans as a reliable source of funding, further driving growth in the segment.
Key highlights from Muthoot Finance Q2FY26
The company’s standalone loan assets under management rose 47% year-on-year to Rs 1.32 trillion at the end of September.
The company raised its FY26 gold loan growth guidance to 30%-35% from 15%. Managing Director of Muthoot Finance, George Alexander Muthoot said, “Favorable regulatory changes by the RBI (Reserve Bank of India) for gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand.”
Asset quality improved, with gross stage three loans- or loans overdue for more than 90 days – as percentage of total loans dropping to 2.25% at the end of September from 2.58% three months earlier.
Share price of Muthoot Finance
The Share price of Muthoot Finance ended 2% higher on the day. the stock has risen 59% so far in 2025.