Muthoot Capital Services Ltd, part of Muthoot Pappachan Group, is a Non-Banking Finance Company, specializing in vehicle loans, particularly for two-wheelers and used cars. Their core business involves lending to retail, corporate, and institutional customers through various financial products.

The company experienced an impressive year-on-year AUM growth of 40% reaching ₹3,284 crores, driven predominantly by a significant increase in two-wheeler and commercial vehicle portfolios.

While Q2 2026 showed reduced slippages and improved collections, the financial year began with mixed results, transitioning from a Q1 loss to profitability in Q2, reflecting resilience amidst macroeconomic challenges.

Muthoot Capital's strategic shift sees a focus on co-lending reduction, emphasizing EV partnerships, while maintaining robust geographical and digital outreach initiatives such as increasing eNACH penetration to 92%.

The company aims to expand its product portfolio, inclusive of digital innovations, to meet its ambitious AUM target of ₹10,000 crores by 2028. However, current asset quality remains a concern with high GNPA levels.