Muthoot Finance Ltd Q2 profit rises 36%, AUM at ₹2.09 lakh crore

Muthoot Finance Ltd reported consolidated profit after tax of ₹3,278 crore for Q2 FY27, up 36% year on year, supported by 42% growth in consolidated loan assets under management to ₹2,09,317 crore. The results underline continued expansion in gold loans, although standalone gross NPAs increased sequentially.

What did Muthoot Finance report in Q2 FY27?

Muthoot Finance reported consolidated revenue of ₹9,997.77 crore in the July-September quarter of FY27, an increase of 37.28% from ₹7,282.79 crore in Q2 FY26. Consolidated net profit rose 35.92% to ₹3,278 crore from ₹2,411.66 crore a year earlier.

The company said its board approved the unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026, at its meeting on October 31, 2026. On a sequential basis, consolidated revenue increased 15.29% from ₹8,671.60 crore in the previous quarter, while net profit rose 16.04% from ₹2,824.84 crore.

Consolidated operating profit was ₹8,734.17 crore, up 43.22% year on year and 18.27% quarter on quarter. Profit before tax stood at ₹4,399.04 crore, recording year-on-year growth of 35.60% and sequential growth of 15.85%.

At the standalone level, Muthoot Finance reported profit after tax of ₹2,977 crore for Q2 FY27, compared with ₹2,345 crore in the corresponding quarter of FY26. Standalone total income increased to ₹8,842 crore from ₹6,442 crore, while interest income rose to ₹8,730 crore from ₹6,304 crore.

How fast did Muthoot Finance's loan book grow?

Muthoot Finance's consolidated loan AUM rose 42% year on year to ₹2,09,317 crore as of September 30, 2026, from ₹1,47,673 crore a year earlier. The loan book increased by ₹27,401 crore during the first half of FY27, representing 15% growth over the six-month period.

Standalone loan AUM stood at ₹1,87,810 crore at the end of September, compared with ₹1,32,305 crore a year earlier. This also represented 42% year-on-year growth. During Q2 FY27, gold loan AUM increased by ₹15,658 crore.

Consolidated gold loan AUM grew 46% year on year to ₹1,93,212 crore in the first half of FY27. Gold loans therefore remained the principal contributor to the group's asset growth during the period.

What do the half-year numbers show?

Muthoot Finance recorded consolidated profit after tax of ₹6,103 crore in H1 FY27, up 39% from ₹4,386 crore in H1 FY26. The performance reflects growth in loan assets and income during the April-September period.

Standalone profit after tax for the first half was ₹5,527 crore, a 26% increase year on year. The difference between standalone and consolidated figures reflects the reporting of the wider group alongside the core standalone business.

The company's Q2 consolidated performance also followed an increase in financing profit. Financing profit was ₹4,424.24 crore during the quarter, compared with ₹3,232.01 crore in Q2 FY26, an increase of 36.89%.

Why is asset quality a key point in the results?

Muthoot Finance's standalone gross non-performing asset ratio rose to 3.87% from 2.28% in the previous quarter. The sequential increase indicates deterioration in reported standalone asset quality even as loan AUM and profit expanded strongly.

Asset quality is relevant for a lender because it affects credit costs, profitability and the quality of future loan-book growth. The available results data does not provide a reason for the change in the gross NPA ratio or disclose a corresponding consolidated NPA figure.

The company is operating under the Reserve Bank of India's updated gold lending guidelines, which became effective on April 1, 2026. Managing Director Alexander George Muthoot said the new guidelines involve a learning curve for both the company and customers and are expected to stabilise over a few quarters.

What is Muthoot Finance's outlook for FY27?

Muthoot Finance has revised its FY27 gold loan growth guidance upward by an additional 10%, according to Managing Director Alexander George Muthoot. The revision followed the continued expansion in gold loan AUM during the first half of the financial year.

The reported outlook indicates that FY27 earnings growth will depend on loan-book expansion rather than margin improvement. This makes growth in disbursements, AUM and asset quality relevant operating indicators for investors tracking the company through the rest of the year.

For customers, the updated regulatory framework and the company's stated learning curve may influence the lending process as the guidelines are implemented. For the gold loan industry, Muthoot Finance's results show that asset growth remained strong during the transition to the updated rules.

Conclusion

Muthoot Finance delivered higher consolidated revenue, profit and loan AUM in Q2 FY27, with consolidated profit rising 36% to ₹3,278 crore and consolidated loan AUM reaching ₹2,09,317 crore. Gold loans remained the central driver of growth, while the increase in standalone gross NPAs to 3.87% was an important counterpoint in the quarter's results.

The next areas to watch are the execution of the revised FY27 gold loan growth guidance, the effect of the RBI's gold lending guidelines as they stabilise, and changes in the standalone gross NPA ratio. The company has indicated that loan-book expansion, rather than margin gains, will be the main driver of earnings growth in FY27.