Monday, August 25, 2025

Muthoot Finance Q1 Results: Earnings beat across parameters, asset quality improves

Date:

Gold loan financier Muthoot Finance Ltd on Wednesday (August 13) reported a 89.6% year-on-year (YoY) spike in net profit at ₹2,046 crore for the first quarter that ended June 30, 2025, the highest for any quarter.In the corresponding quarter of the previous fiscal, Muthoot Finance posted a net profit of ₹1,079 crore. The CNBC-TV18 poll had predicted a profit of ₹1,674 crore for the quarter under review.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 50.6%, coming at ₹3,473 crore against ₹2,305 crore in the corresponding quarter of FY25. The CNBC-TV18 poll had predicted a net interest income of ₹3,199 crore for the quarter under review.

Also Read: Muthoot Finance shares fall over 8% in reaction to draft RBI norms, Kotak downgradeNet Interest Margin (NIMs) during the quarter increased to 12.15% from 11.51% last year. On a consolidated basis, Muthoot Finance saw improvement in its asset quality with Stage III assets to gross loan assets improving to 2.58% from 3.41% in the March quarter.

Muthoot Finance reported its highest-ever consolidated loan assets under management (AUM) for the quarter ended June 30, 2025, at ₹1,33 lakh crore, marking a 37% year-on-year (YoY) increase. On a standalone basis, Muthoot reported an AUM growth of 42% from last year to ₹1.2 lakh crore.
The company achieved its highest-ever average gold loan AUM per branch at ₹23.21 crore. Gold loan disbursements to new customers stood at ₹6,355 crore, extended to 4,45,481 customers. The highest-ever gold loan AUM was recorded at ₹1,13 lakh crore, up 40% YoY.Also Read: Muthoot Finance shares surge 6% on Friday — Key factors explained

The quantity of gold held as security in its lockers reached a record 209 tonnes. Muthoot Homefin’s loan AUM stood at ₹3,096 crore in Q1 FY26, a 41% YoY increase from ₹2,199 crore. Interest income grew 49% YoY to ₹86 crore from ₹58 crore in the year-ago quarter.

Muthoot Money

Muthoot Money reported a 202% YoY increase in loan AUM to ₹5,000 crore from ₹1,657 crore. Total revenue rose 255% YoY to ₹213 crore, while PAT surged 3,700% YoY to ₹37 crore. The company witnessed a continued decline in NPAs through physical collections, with gross NPA reducing to 0.96% in Q1 FY26 from 1.67% in Q1 FY25. Its branch network increased to 997 during the quarter.

Muthoot Finance said its Board of Directors has approved an additional equity infusion of ₹500 crore in Muthoot Money Limited and ₹200 crore in Muthoot Homefin (India) Limited, both wholly owned subsidiaries of the company.

Also Read: Muthoot Finance, Manappuram shares jump up to 8% on RBI Governor remarks on Gold loans

The results came after the close of the market hours. Shares of Muthoot Finance Ltd ended at ₹2,510.75, down by ₹26.05, or 1.03% on the BSE.

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