Muthoot Finance Q2 FY26 Financial Performance

Muthoot Finance Ltd. has reported a stellar performance for the second quarter ending September 30, 2025, delivering results that significantly surpassed market consensus estimates across key metrics. The company achieved its highest-ever Gold Loan and Consolidated Loan AUM, underscoring robust business momentum and strong operational execution. Key Financial Highlights Net Profit: The company posted a consolidated Net Profit of ₹2,345 crore, marking a substantial 87.4% year-over-year (YoY) growth. This figure significantly exceeded the analyst poll estimate of ₹1,929 crore. Net Interest Income (NII): Core income (NII) demonstrated strong growth, rising by 58.5% YoY to ₹3,992 crore. This performance also beat the consensus estimate of ₹3,539 crore, indicating healthy margins and strong interest income. Business Growth & Portfolio Record AUM: Consolidated Loan Assets Under Management (AUM) grew by 42% YoY to reach ₹1.47 lakh crore, the highest in the company's history. Gold Loan Dominance: The core Gold Loan AUM was a primary growth engine, expanding by 45% YoY to an all-time high of ₹1.24 lakh crore. Disbursements: The company maintained strong business momentum, disbursing gold loans worth ₹13,183 crore during the quarter. Asset Quality & Provisions Asset Quality Improvement: The company's asset health showed sequential improvement. Stage III gross loan assets (NPAs) declined to 2.25% from 2.58% in the preceding quarter (June 2025). Provisioning: ECL (Expected Credit Loss) provisions remained stable and prudent, standing at 1.21% of gross loan assets, slightly down from 1.3% in Q1 FY26. Strategic Write-offs: Muthoot Finance undertook write-offs of bad debt amounting to ₹776 crore. It is important to contextualize this figure, which represents only 0.06% of the company's gross loan assets.