On Friday, Muthoot Finance share price jumped over 10% to a record high of ₹3,755 per share as the gold loan financier's Q2 profit jumped 87.5% on strong loan demand amid soaring prices for the precious metal.
Muthoot Finance has released its unaudited results for the quarter and half-year ended September 30, 2025, reporting its strongest financial performance to date.
The Muthoot Finance Group achieved its highest-ever consolidated Loan Assets Under Management (AUM) and consolidated Profit After Tax for any first half period. Consolidated Loan AUM reached ₹1,47,673 crore, marking a 42% year-on-year increase driven by historic AUM growth of ₹43,524 crore.
The consolidated performance of Muthoot Finance Ltd. in H1 FY26 marked new milestones across all major financial indicators. During the first half of FY26 alone, the consolidated loan book grew by ₹25,493 crore, reflecting a 21% half-yearly increase, while Q2 FY26 contributed a sequential rise of 10%.
Alongside robust AUM growth, consolidated profitability also reached record levels. Profit After Tax for H1 FY26 stood at ₹4,386 crore, marking a 74% increase over the ₹2,517 crore reported in H1 FY25, with Q2 FY26 contributing ₹2,412 crore.
The standalone performance of Muthoot Finance Ltd. also set new benchmarks, with standalone Loan AUM rising to ₹1,32,305 crore, a 47% increase compared to the previous year. Standalone PAT climbed to ₹4,391 crore, recording an 88% year-on-year rise. For Q2 FY26, standalone PAT stood at ₹2,345 crore, reflecting an 87% increase over Q2 FY25. Total standalone income for the first half of FY26 grew 55% year-on-year to ₹12,181 crore, supported by higher disbursements and a larger customer base.
The gold loan segment continued to drive overall business growth. Gold holdings increased to 209 tonnes from 199 tonnes a year ago. Gold Loan AUM reached a historic level of ₹1,24,918 crore, marking a 45% year-on-year increase. Productivity also improved, with average Gold Loan AUM per branch growing 42% year-on-year to ₹25.15 crore. The company disbursed ₹13,183 crore to 8,90,920 new gold loan customers.
During the same period, Muthoot Finance received a long-term issuer rating upgrade from Fitch Ratings, moving from ‘BB’ to ‘BB+’ with a stable outlook. The company also raised USD 600 million in the global bond market and strengthened its network by opening 133 new branches during H1 FY26.
Managing Director George Alexander Muthoot noted the continued strength of the company’s business model and the trust placed by its customers. He highlighted the sharp rise in standalone Loan AUM and announced an upward revision in the company’s FY26 gold loan growth guidance from 15% to 30–35%. This revised outlook is supported by anticipated regulatory support from the RBI for the gold loan segment, rising gold prices, and tighter norms around unsecured credit, all of which are expected to boost gold-backed lending.
The company also plans to expand its non-gold loan segments, including home, business and personal loans, while keeping the share of non-gold AUM, including microfinance, in the range of 12–15% of the consolidated portfolio. Chairman George Jacob Muthoot added that the historic rise in consolidated AUM reflects the company’s strong momentum and solid leadership in the gold loan market.
Subsidiaries across the Group reported strong financial and operational improvements.
Muthoot Money Ltd (MML) delivered a significant turnaround with its Loan AUM rising to ₹6,393 crore, marking a 182% year-on-year increase. Total revenue grew 244% to ₹501 crore, and the subsidiary posted a profit of ₹106 crore in H1 FY26 versus a loss of ₹5 crore last year.
Muthoot Homefin (India) Ltd (MHIL), focused on affordable housing, reported a Loan AUM of ₹3,247 crore, up 33% year-on-year, with total revenue increasing 44% to ₹222 crore. The subsidiary also strengthened its capital position with an infusion of ₹200 crore.
Asia Asset Finance PLC (AAF) in Sri Lanka reported steady progress, with Loan AUM rising 48% year-on-year to LKR 3,868 crore and PAT growing 33% to LKR 40 crore. Its branch network expanded by 18% to 107 branches.
Belstar Microfinance Ltd (BML) reported a loss of ₹160 crore due to ongoing stress in the microfinance sector; however, losses narrowed significantly from ₹128 crore in Q1 FY26 to ₹32 crore in Q2 FY26. With the RBI now allowing up to 40% non-microfinance exposure, BML opened 23 gold loan branches to diversify its loan mix.
On Friday, Muthoot Finance share price hit the 10% upper circuit to a record high of ₹3,755 per share after announcing its Q2FY26 results. As of 11:31 am, the stock price was trading at ₹3,736.20 per share, up by 10.63% after unlocking from the upper circuit band. The stock price is trading at an all-time high and has given 110% returns in the last 12 months
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