Muthoot Finance has once again delivered a golden quarter! The leading gold loan financier reported a stellar 87% year-on-year (YoY) surge in net profit to ₹2,345 crore for the July–September quarter of FY26, backed by robust loan growth and strong operational efficiency.
Revenues Surge 57% on Strong Loan Growth
During the second quarter (Q2 FY26), total income jumped 57% YoY to ₹6,461 crore, driven by healthy expansion in the loan book and stable margins. The company’s profit before tax (PBT) rose sharply by 85% to ₹3,151 crore, signaling consistent financial strength.
Gold Loan Portfolio Touches ₹1.25 Lakh Crore
Muthoot Finance’s standalone loan book grew impressively to ₹1.32 lakh crore, reflecting a 47% annual rise. Of this, the gold loan portfolio alone contributed ₹1.25 lakh crore, marking a 45% jump YoY — further cementing Muthoot Finance’s leadership in India’s gold-backed lending market.
With over 4,961 branches across the country as of September 30, 2025, the lender continues to strengthen its reach and accessibility to customers nationwide.
read more: IRCTC Q2 FY26 Results: Steady Growth and Strong Dividend Declaration
Profitability Ratios at Multi-Quarter Highs
Operational metrics also showed notable improvement:
- Return on Average Loans (ROAL) rose to 7.44%, compared with 7.16% in Q1 FY26 and 5.74% a year ago.
- Return on Average Equity (ROAE) climbed to 30.61%, up from 28.28% in the previous quarter.
- Book Value per Share increased to ₹793.09, underscoring consistent value creation for shareholders.
Strong H1 FY26 Performance
In the first half of FY26 (April–September 2025):
- Total income grew 55% YoY to ₹12,181 crore.
- Net profit surged 88% YoY to ₹4,391 crore.
- Return on Assets (ROA) improved to 7.30%, up from 5.58% last year.
- Earnings per Share (EPS) stood at ₹109.39, reflecting solid operational leverage and efficiency gains across business verticals such as housing finance and microfinance.
Stock Reaction and Market Outlook
Ahead of the results, Muthoot Finance shares closed 2% higher at ₹3,395 on Thursday, reflecting positive investor sentiment. Analysts remain optimistic about the company’s growth trajectory, citing strong asset quality, steady margins, and sustained demand for gold loans.
Experts believe that with its well-diversified portfolio and robust branch network, Muthoot Finance is well-positioned to maintain its momentum through FY26 and beyond.
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