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14-Aug-2025     10:43
Muthoot Finance dazzles after strong Q1 earnings
On a consolidated basis, net profit climbed 65% year-on-year to Rs 1,974.2 crore in Q1 FY26 from Rs 1,195.7 crore in Q1 FY25.

Total income rose 44% YoY to Rs 6,485 crore in Q1 FY26 from Rs 4,492.4 crore a year ago.

Muthoot Finance earns the bulk of its revenue from interest income, which rose 45% YoY to Rs 6,288 crore. Other income also saw an 88% increase to Rs 34.9 crore.

Profit before tax stood at Rs 2,654 crore in Q1 FY26, up 61% from Rs 1,645.7 crore in Q1 FY25.

Total expenses increased 35% YoY to Rs 3,831 crore from Rs 2,846.7 crore, driven by higher finance costs, which jumped 48% to Rs 2,354.9 crore, and employee benefit expenses, which were up 35% at Rs 696.5 crore.

The group's consolidated gross loan assets stood at Rs 1,33,938 crore, up 37% YoY and 10% QoQ, with Muthoot Finance contributing Rs 1,17,141 crore and subsidiaries Rs 16,797 crore.

During the quarter, consolidated loan assets under management increased by 10% of Rs 11,757 crore.

On a standalone basis, Muthoot Finance (MFIN), India's largest gold financing company in terms of loan portfolio, registered profit after tax of Rs 2,406 crore in Q1 FY26 as against Rs 1,079 crore in Q1 FY25, an increase of 90% YoY. Loan AUM stood at Rs 1,20,031 crore in Q1 FY26 as compared to Rs. 84,324 crore in Q1 FY25, registering a growth of 42% YoY. During the quarter, loan assets increased by Rs 11,383 crore registering a growth of 10%. Gold Loan assets increased by Rs 32,272 crore registering a growth of 40% YoY.

George Jacob Muthoot, chairman said As Indian economy advances, demand for quick, reliable, and affordable credit is rising ' and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead.

George Alexander Muthoot, Managing Director, said, Looking ahead, we are accelerating our efforts to digitally enable our gold loan offerings, making credit access faster, more seamless, and more inclusive. Our technology investments are already enhancing customer experience, reducing turnaround times, and strengthening operational efficiency. The recent RBI guidelines on gold loans will bring greater transparency and further streamline the lending process, while the recent interest rate cuts create a more favourable credit environment. With these supportive tailwinds, and our continued focus on innovation and service excellence, we are well-positioned to sustain strong growth through FY26 and beyond.

The company offers easy access to credit for individuals who own gold jewellery but may face delays in accessing formal lending channels. Its core offering ' gold loans secured against gold jewellery ' supports individuals and small businesses with essential short-term liquidity. In addition, it also provides a range of financial services through subsidiaries, including personal and business loans, insurance distribution and money transfer services.

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