Muthoot Finance’s standalone net profit more than doubled year-on-year to ₹3,086 crore in the fourth quarter of FY26, driven by a sharp rise in interest income and record gold loan disbursements. The country’s largest gold loan NBFC had reported a net profit of ₹1,508 crore in the year-ago period.
Standalone revenue from operations rose 68% YoY to ₹8,178 crore during the quarter, led primarily by interest income, which increased to ₹8,056 crore from ₹4,783 crore in Q4FY25. Standalone loan assets under management (AUM) crossed the ₹1.60 lakh crore milestone for the first time to reach an all-time high of ₹1.63 lakh crore as of March 31, 2026. During FY26, gold loan AUM increased by ₹51,128 crore, registering a growth of 50%. In Q4 alone, gold loan AUM rose by ₹14,426 crore, reflecting a 10% sequential increase.
Monetising the Locker
With the West Asia crisis likely to impact the bottom-of-the-pyramid economy, the company expects demand for gold loans to remain strong in the current fiscal. “Because banks are tightening unsecured lending, microfinance companies are becoming conservative in lending, and MSMEs requiring additional capital are increasingly depending on gold loans. People are monetising their gold ornaments to access easy credit,” George Alexander Muthoot, MD, Muthoot Finance told FE.
He, however, said there was limited risk of slippages in the gold loan business as borrowers generally reclaim their pledged ornaments, especially with gold prices continuing to rise. “Gold loans auctioned in the last one year were only about ₹100 crore,” he noted.
Muthoot said the company will guide for a 15% AUM growth for FY27 in line with its long-standing practice of giving conservative guidance at the start of the fiscal year, with revisions likely in subsequent quarters.
On a consolidated basis, Muthoot Finance reported a net profit of ₹3,397 crore in Q4FY26 compared with ₹1,444 crore in the corresponding quarter last year. Consolidated revenue rose 65% YoY to ₹9,289 crore. For full FY26, consolidated profit after tax increased 98% YoY to ₹10,607 crore, while consolidated AUM grew 49% to ₹1,81,916 crore. The consolidated numbers include Muthoot Homefin, Belstar Microfinance and Muthoot Insurance Brokers.
Diversified Resilience
“Our non-gold loan offerings continued to gain traction, with microfinance loans, personal loans and home loans playing a pivotal role in diversifying the overall loan book,” Muthoot said. He added that the microfinance arm demonstrated resilience despite broader sectoral stress and continued to deliver a positive return on assets.
Belstar Microfinance’s loan AUM stood at ₹8,222 crore as of March-end, compared with ₹7,970 crore a year earlier. Its FY26 revenue stood at ₹1,829 crore against ₹2,125 crore in FY25, while profit after tax fell to ₹25 crore from ₹46 crore. The company also declared its highest-ever dividend of 300% for FY25-26, translating into ₹30 per equity share of face value ₹10. This marks the 14th consecutive year of dividend declaration since its IPO in 2011.