Muthoot Finance rises as Q2 net profit jumps 36% YoY
The company reported a 37.2% year-on-year increase in consolidated total income to Rs 10,010.8 crore in Q2 FY27 from Rs 7,299 crore. Sequentially, total income increased 15.1% from Rs 8,694.8 crore in Q1 FY27.
Interest income rose 39% year on year to Rs 9,855.8 crore from Rs 7,091.3 crore. Service charges increased 3% to Rs 95.8 crore.
Profit before tax stood at Rs 4,399 crore in Q2 FY27, up 15.8% vs previous quarter and 35.6% vs year-ago quarter.
Total expenses increased 38.4% year on year to Rs 5,611.7 crore from Rs 4,054.8 crore. Finance costs rose 44.5% to Rs 3,716.6 crore, while impairment of financial instruments increased to Rs 593.3 crore from Rs 261.8 crore. Employee benefit expenses rose 11.7% to Rs 760.9 crore.
Consolidated loan assets under management (AUM) grew 42% year on year to Rs 2,09,317 crore as of Q2 FY27, compared with Rs 1,47,673 crore a year earlier. AUM increased 9% sequentially from Rs 1,91,532 crore in Q1 FY27. The group's branch network expanded to 7,904 branches from 7,524 a year earlier.
Muthoot Finance's standalone profit after tax increased 27% year on year to Rs 2,977 crore in Q2 FY27 from Rs 2,345 crore. Standalone loan AUM stood at Rs 1,87,810 crore, registering 42% year-on-year growth.
Executive vice chairman George Alexander Muthoot said the company sustained its growth momentum in Q2 FY27, with consolidated loan AUM reaching a record Rs 2,09,317 crore. He attributed the performance to growth in the core gold loan business and said subsidiaries contributed 12% of consolidated loan assets. He also said Belstar had opened 163 gold loan branches and that the merger of Muthoot Money, now focused exclusively on gold loans, was expected to unlock operational and financial efficiencies.
Managing director Alexander George Muthoot said the company had raised its FY27 gold loan growth guidance by an additional 10%. He added that Muthoot Finance opened 201 branches during the quarter and remained focused on customer reach, technology-led services and prudent lending practices.
Muthoot Finance is a gold loan-focused non-banking financial company (NBFC). Its lending operations are supported by a nationwide branch network and subsidiaries engaged in financial services.
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