Synopsis:
The shares of this NBFC soared 10 per cent as the company declared its Q2 results, highlighting a profit growth of 83 per cent and revenue growth of 48 per cent YoY and more.
The shares of this company, which is engaged in the business of providing gold loans and which predominately operates in Southern India, had its shares in the spotlight today after announcing its Q2 results, indicating high growth in its profit, revenue and other metrics.
With a market cap of Rs 1,49,759 crore, the shares of Muthoot Finance Ltd skyrocketed 10 per cent today, reaching a high of Rs 3,730.30 in today’s trading session when compared to its previous day closing price of Rs 3,391.20. Today’s high also marks its 52-week high, and the shares have given a one-year return of 110 per cent.
Q2 FY26 Result highlights
The total revenue from operations for the company stood at Rs 7,283 crore when compared to Rs 4,929 crore in Q2 FY25, growing by about 48 per cent on a YoY basis and on a QoQ basis increasing by 13 per cent from Rs 6,450 crore in Q1 FY26.
The net profit grew by about 83 percent on a YoY basis when you compare the Q2 FY26 profit at Rs 2,412 crore to Rs 1,321 crore in Q2 FY25 and on a QoQ basis has increased 22 percent from Rs 1,974 crore in Q1 FY26.
H1 FY26 highlights
Muthoot Finance delivered an impressive performance in H1 FY26, with its consolidated loan book climbing to Rs 1,47,673 crore, up from Rs 1,04,149 crore last year, which is a solid 42 per cent jump. The company added Rs 25,493 crore in new loans during the first half, reflecting continued demand and 21 per cent growth over six months.
Profits also moved sharply higher, with PAT rising to Rs 4,386 crore compared to Rs 2,517 crore in H1 FY25, a strong 74 percent increase. Even in Q2 alone, the loan book expanded by Rs 13,735 crore, showing a 10 per cent growth in just one quarter.
The company also recorded the highest ever gold loan AUM at Rs 1,24,918 crores, which is a 45 per cent YoY increase, and continues to see strong momentum in its gold loan business. The average gold loan AUM per branch has reached a record Rs 25.15 crore, showing how demand is steadily rising.
The company also welcomed a large number of new customers, disbursing Rs 13,183 crore in gold loans to 8,90,920 customers. The gold kept as security has grown too, increasing from 199 tonnes to 209 tonnes YoY, a sign of deeper customer engagement. On the financial front, Muthoot received a boost as Fitch Ratings upgraded its debt rating from ‘BB’ to ‘BB plus’ with a stable outlook, reflecting improved confidence in the business.
Muthoot Finance Ltd (MFL) is India’s largest gold financing company in terms of loan portfolio and also offers money transfer services, business loans, corporate loans, loans against property, collection services, etc. It operates 4,950-plus branches across 29 states and union territories. It holds 209 tonnes of gold jewellery as security and services 2 lakh customers daily.
Written by Leon Mendonca
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