Muthoot Finance Q2 profit rises 36% to Rs 3,278 crore

Muthoot Finance Limited reported consolidated profit after tax of Rs 3,278 crore for the quarter ended September 30, 2026, 36% above Rs 2,412 crore a year earlier. Revenue from operations rose 39% to Rs 9,856 crore, while consolidated other loans increased to Rs 21,048 crore from Rs 17,886 crore at March 31, 2026.

How much did Muthoot Finance profit grow in Q2?

Muthoot Finance reported consolidated profit after tax of Rs 3,278 crore in the quarter ended September 30, 2026, compared with Rs 2,412 crore in the quarter ended September 30, 2025 and Rs 2,825 crore in the preceding June 2026 quarter. The reported year-on-year increase was 36%, and the quarter-on-quarter increase was 16%.

Profit before tax was Rs 4,399 crore in the September 2026 quarter, up from Rs 3,232 crore a year earlier. Current-tax expense rose to Rs 1,121 crore from Rs 820 crore, while deferred-tax expense was Rs 0.28 crore, compared with Rs 5.33 crore in the year-earlier quarter.

Total comprehensive income was Rs 3,347 crore for the September 2026 quarter, compared with Rs 2,456 crore a year earlier and Rs 2,699 crore in June 2026. Profit attributable to owners of the parent was Rs 3,247 crore, while non-controlling interests received Rs 31 crore; basic and diluted earnings per share were both Rs 80.87, against Rs 60.30 a year earlier.

What lifted Muthoot Finance revenue in the quarter?

Muthoot Finance recorded revenue from operations of Rs 9,856 crore in the September 2026 quarter, compared with Rs 7,091 crore in September 2025 and Rs 8,557 crore in June 2026. The rise was driven principally by the reported interest-income line within operating revenue, which was Rs 9,856 crore for the quarter.

Net gains on fair-value changes of financial instruments were Rs 44.64 crore, down from Rs 75.41 crore a year earlier. Service charges increased to Rs 95.83 crore from Rs 92.74 crore, while sale of services was Rs 1.54 crore, compared with Rs 6.55 crore in the comparable quarter.

For the half year ended September 30, 2026, revenue from operations reached Rs 18,412.76 crore, up from Rs 13,379.31 crore in the corresponding six months of 2025. Consolidated profit after tax for the half year was Rs 6,102.84 crore, compared with Rs 4,385.91 crore in the prior-year period.

How did Muthoot Finance loans and funding change?

Muthoot Finance’s consolidated other loans were Rs 21,048.02 crore at September 30, 2026, up from Rs 17,885.68 crore at March 31, 2026. The Rs 3,162.34 crore increase over six months coincided with total consolidated assets rising to Rs 23,005.09 crore from Rs 19,575.40 crore.

Cash and cash equivalents were Rs 1,456.49 crore at September 30, compared with Rs 1,261.40 crore at March 31. Debt securities stood at Rs 5,616.31 crore and borrowings other than debt securities were Rs 12,232.23 crore at the September reporting date.

The half-year cash-flow statement showed Rs 3,238.03 crore used in loans, compared with Rs 2,502.16 crore in the corresponding previous period. Financing activities generated Rs 2,696.90 crore, including Rs 1,931.35 crore from debt securities and Rs 843.95 crore from other borrowings, while operating activities used Rs 2,454.17 crore.

Did Muthoot Finance costs and impairment change?

Muthoot Finance’s total expenses were Rs 5,611.75 crore in the September 2026 quarter, compared with Rs 4,054.80 crore in the September 2025 quarter. Finance costs rose 45% to Rs 3,716.59 crore from Rs 2,571.22 crore, accounting for most of the increase in reported expenses.

Impairment on financial instruments was Rs 593.34 crore, lower than Rs 681.18 crore a year earlier but above Rs 121.33 crore in the June 2026 quarter. Employee benefits expense was Rs 760.86 crore and depreciation, amortisation and impairment was Rs 38.22 crore in the September 2026 quarter.

For the half year ended September 30, finance costs increased to Rs 7,174.98 crore from Rs 4,926.14 crore in the corresponding 2025 period. Impairment on financial instruments rose to Rs 714.66 crore from Rs 625.98 crore, even as half-year profit after tax increased by Rs 1,716.93 crore.

What is Muthoot Finance’s proposed amalgamation?

Muthoot Finance’s board approved a scheme of amalgamation between Muthoot Money Limited, its wholly owned subsidiary, and Muthoot Finance on August 31, 2026. The scheme requires sanction from the National Company Law Tribunal, Kochi Bench, and approvals from the Reserve Bank of India, shareholders, creditors and other authorities where applicable.

The September 2026 consolidated results include Muthoot Homefin (India) Limited, Belstar Microfinance Limited, Muthoot Insurance Brokers Private Limited, Muthoot Asset Management Private Limited, Muthoot Trustee Private Limited, Muthoot Money Limited and Asia Asset Finance PLC. Muthoot Finance said it and its subsidiaries mainly operate in financing and therefore reported no separate operating segments under Indian Accounting Standard 108.

Muthoot Finance reported full security cover for secured listed non-convertible debentures with principal value of Rs 55,381.68 crore at September 30, 2026. The auditors’ certificate said the cover was adequate under the relevant debenture trust deeds and that nothing had come to their attention indicating non-compliance with the stated general and financial covenants.

Conclusion

Muthoot Finance combined a 39% increase in quarterly revenue with a 36% rise in consolidated September-quarter profit after tax to Rs 3,278 crore. The balance sheet also showed other loans increasing by Rs 3,162 crore since March, while finance costs rose to Rs 3,717 crore and impairment charges increased sequentially to Rs 593 crore.

The next development to watch is the proposed amalgamation of Muthoot Money Limited with Muthoot Finance, which remains subject to tribunal, Reserve Bank of India, shareholder, creditor and other regulatory approvals. Subsequent results will also show whether loan growth continues and how finance costs and impairment evolve after first-half finance costs of Rs 7,175 crore.