Muthoot Finance listed NCDs grew 72% as borrowings rose 46%

Muthoot Finance reported total principal borrowings of Rs 163,866.7 crore at September 30, 2026, 46% above a year earlier, while listed secured non-convertible debentures (NCDs) rose 72% to Rs 55,381.7 crore. Listed secured NCDs represented 34% of the disclosed funding profile, while bank and financial-institution borrowings represented 46%.

How did Muthoot Finance's funding mix change?

Muthoot Finance increased the listed secured NCD share of its funding mix to 34% at September 30, 2026, from 28.7% at September 2025 when calculated from the disclosed principal-borrowing amounts. Borrowings from banks and financial institutions (FIs) accounted for 46% at September 2026, compared with 49.7% a year earlier, despite an increase in their absolute amount.

Total principal borrowings increased by Rs 51,858.2 crore year on year, from Rs 112,008.5 crore in September 2025 to Rs 163,866.7 crore in September 2026. Listed secured NCDs added Rs 23,236.8 crore to that increase, while bank and FI borrowings added Rs 19,653.1 crore and external commercial borrowings through senior secured notes added Rs 8,593.5 crore.

The table uses principal amounts, which is the basis Muthoot Finance specifies for its borrowing presentation. The September 2026 mix included bank and FI borrowings, listed secured NCDs, senior secured notes, commercial paper, other loans and listed subordinated debt, rather than a single funding source.

Why did listed secured NCDs become more important to Muthoot Finance?

Listed secured NCDs became a larger part of the disclosed mix because their principal amount rose 72% year on year to Rs 55,381.7 crore, exceeding the 46% increase in total principal borrowings. The category also rose 8% from Rs 51,075.2 crore at June 2026, showing growth both during the quarter ended September 2026 and over the year.

Bank and FI borrowings rose 35% year on year to Rs 75,283.4 crore, below the growth rate of listed secured NCDs, although they increased 17% quarter on quarter from Rs 64,605.8 crore in June 2026. Banks and FIs remained the largest funding channel by amount, but the gap with listed secured NCDs narrowed to Rs 19,901.7 crore at September 2026.

Muthoot Finance reported that its NCDs were listed on the National Stock Exchange and BSE. It separately identified external commercial bonds, described as senior secured notes and listed on NSE IX, with principal borrowings of Rs 26,352 crore at September 2026, equal to 16% of the disclosed funding profile.

Which sources accounted for Muthoot Finance's borrowing growth?

Banks and FIs, listed secured NCDs and senior secured notes accounted for Rs 51,483.4 crore of Muthoot Finance's Rs 51,858.2 crore year-on-year increase in principal borrowings by September 2026. Their respective increases were Rs 19,653.1 crore, Rs 23,236.8 crore and Rs 8,593.5 crore, while commercial paper, other loans and listed subordinated debt made up the remaining movement.

Commercial paper was nearly unchanged year on year at Rs 5,569.3 crore in September 2026, compared with Rs 5,557.3 crore in September 2025, but declined 8% from Rs 6,083.4 crore in June 2026. Other loans declined 10% year on year to Rs 830.3 crore and 9% quarter on quarter from Rs 914 crore, making both categories smaller contributors than the three largest funding channels.

Listed subordinated debt stood at Rs 450 crore in September 2026, compared with Rs 300 crore in March 2026; Muthoot Finance did not present a September 2025 amount. At the reporting date, the company assigned this category a 0% rounded share of the funding profile, while commercial paper represented 3%, other loans 1%, senior secured notes 16%, listed secured NCDs 34%, and bank and FI funding 46%.

What balance-sheet and ratings data accompanied the funding mix?

Muthoot Finance reported outside liabilities of Rs 168,631.7 crore, cash and cash equivalents plus bank balances of Rs 13,538.9 crore, and tangible net worth of Rs 42,013.5 crore at September 2026. It reported capital gearing of 3.69 alongside these balance-sheet figures and its funding profile.

Outside liabilities exceeded total principal borrowings of Rs 163,866.7 crore by Rs 4,765 crore at September 2026. Muthoot Finance labels its funding table as principal amounts, while it presents outside liabilities in its operating-leverage section, so the two disclosed measures are not identical.

For domestic long-term instruments, CRISIL Ratings assigned AA+ / Stable and ICRA Limited assigned AA+ (Stable) to listed secured NCDs, subordinated debt and bank loans as shown in the September 2026 presentation. For short-term funding, commercial paper carried A1+ from CRISIL Ratings and ICRA Limited, while bank loans carried A1+ from ICRA Limited.

Muthoot Finance also disclosed long-term international ratings of BB+ (Stable) from Fitch Ratings, BB+ / Stable / B from S&P Global Ratings, and Ba1 (Stable) from Moody's Investors Service. These disclosures accompanied the Rs 26,352 crore senior-secured-notes balance, which was 1% higher than Rs 26,032.2 crore at June 2026.

Conclusion

Muthoot Finance's September 2026 data show that listed secured NCDs were its fastest-growing major funding channel, rising 72% year on year and reaching 34% of principal borrowings. Bank and FI funding nevertheless remained the largest source at 46%, meaning the reported change was a rebalancing within a multi-channel funding structure rather than a replacement of bank funding.

The presentation does not disclose a future funding target or issuance schedule. The key unresolved comparison is whether the funding mix changes after the 17% quarter-on-quarter increase in bank and FI borrowings and the 8% increase in listed secured NCDs, alongside reported capital gearing of 3.69 at September 2026.