Muthoot Money gold-loan focus coincides with 99% AUM growth

Muthoot Money Limited reported loan assets under management, or AUM, of Rs 12,715.8 crore in the first half, or H1, of financial year, or FY, 2027, up 99% from H1 FY 2026. Muthoot Money’s profit after tax rose 242% to Rs 363.5 crore as its stated focus remained gold loans after leaving commercial vehicle and equipment finance.

Why did Muthoot Money move to gold loans?

Muthoot Money moved away from commercial vehicle and equipment financing to concentrate on gold loans. The company says it made the strategic pivot to optimise operational efficiency, improve margins and mitigate risk, replacing the areas for which it was initially established with a gold-loan franchise.

Muthoot Money is registered with the Reserve Bank of India as a non-banking financial company, or NBFC. It reported operations across 26 states and Union Territories in H1 FY 2027, and said it is selectively entering underserved geographies to avoid network overlap within the Muthoot Finance group.

The company’s reported lending scale rose substantially alongside this stated product focus. Loan AUM increased from Rs 6,393.3 crore in H1 FY 2026 to Rs 12,715.8 crore in H1 FY 2027, an increase of Rs 6,322.5 crore. The H1 FY 2027 balance was also above the Rs 9,794.3 crore reported at FY 2026.

How did Muthoot Money’s revenue and profit change?

Muthoot Money’s total revenue rose 120% year on year to Rs 1,102.7 crore in H1 FY 2027, while profit after tax increased 242% to Rs 363.5 crore. Total expense increased 72% to Rs 616.6 crore from Rs 358.5 crore, compared with the rise in revenue from Rs 500.2 crore a year earlier.

Profit before tax reached Rs 486.1 crore in H1 FY 2027, compared with Rs 141.7 crore in H1 FY 2026. The difference was Rs 344.4 crore, while profit after tax increased by Rs 257.3 crore over the same comparison.

Quarterly data showed further expansion between Q1 FY 2027 and Q2 FY 2027. Loan AUM rose to Rs 12,715.8 crore in Q2 from Rs 10,550.3 crore in Q1, while revenue increased to Rs 592.2 crore from Rs 510.5 crore and profit after tax rose to Rs 191.4 crore from Rs 172.1 crore.

How much did Muthoot Money’s branch network and balance sheet expand?

Muthoot Money reported 1,011 branches and 5,067 employees in H1 FY 2027, compared with 997 branches and 4,791 employees in H1 FY 2026. The branch count was also higher than the 998 reported at FY 2026, while employee numbers were above the FY 2026 level of 4,884.

Between Q1 FY 2027 and Q2 FY 2027, the number of branches rose by 13 to 1,011 and employee count increased by 55 to 5,067. This coincided with a Rs 2,165.5 crore increase in loan AUM over the quarter, from Rs 10,550.3 crore to Rs 12,715.8 crore.

Total assets more than doubled year on year to Rs 13,838.9 crore in H1 FY 2027 from Rs 6,867.8 crore in H1 FY 2026. Shareholders’ funds increased to Rs 2,720.1 crore from Rs 1,626.1 crore, while total outside liabilities rose to Rs 11,118.8 crore from Rs 5,241.7 crore.

Muthoot Money’s capital adequacy ratio was 21% in H1 FY 2027, compared with 25% in H1 FY 2026. The ratio was 24% at FY 2026 and 23% in Q1 FY 2027; the presentation reports the movements without providing a separate explanation for them.

What happened to Muthoot Money’s Stage III assets and provisions?

Muthoot Money’s Stage III assets were 1.14% of gross loan assets in H1 FY 2027, up from 0.80% in H1 FY 2026. Stage III loan assets increased to Rs 144.9 crore from Rs 51.1 crore over the same period, while loan AUM rose by 99%.

The Stage III ratio was also above the 0.61% reported at FY 2026 and 0.67% in Q1 FY 2027. In absolute terms, Stage III loan assets rose from Rs 70.2 crore in Q1 FY 2027 to Rs 144.9 crore in Q2 FY 2027. The presentation does not identify customer segments, locations or loan vintages behind this movement.

Expected credit loss, or ECL, provision increased to Rs 77.9 crore in H1 FY 2027 from Rs 37.2 crore in H1 FY 2026. ECL provision as a percentage of gross loan assets was 0.61%, compared with 0.57% a year earlier, 0.54% at FY 2026 and 0.55% in Q1 FY 2027.

Stage III ECL provision was Rs 20.2 crore in H1 FY 2027, compared with Rs 10.8 crore in H1 FY 2026. Muthoot Money therefore reported higher Stage III balances and provision ratios during the period in which it generated Rs 363.5 crore of profit after tax and expanded its gold-loan AUM to Rs 12,715.8 crore.

Conclusion

Muthoot Money’s H1 FY 2027 figures show rapid growth in lending, revenue and profit alongside its stated gold-loan focus. Loan AUM grew by Rs 6,322.5 crore year on year, total revenue increased by Rs 602.5 crore, and profit after tax rose by Rs 257.3 crore. The balance-sheet expansion was accompanied by a larger branch network, more employees and total assets of Rs 13,838.9 crore.

The next disclosed development to watch is Muthoot Money’s selective expansion into underserved geographies while avoiding overlap within the group network. Credit measures also remain relevant: Stage III assets were 1.14% of gross loan assets in H1 FY 2027 versus 0.80% a year earlier, and the capital adequacy ratio was 21% compared with 25% in H1 FY 2026.