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Muthoot Finance Q2: Net profit rises 27% to ₹2,978 crore, NII up 34%; beats estimates - Published OnOct 31, 2026 | 15:53 IST - Last Updated OnOct 31, 2026 | 15:54 IST Muthoot Finance's stellar quarterly performance was propelled by robust lending expansion and an improved asset quality at its microfinance subsidiary, even as regulatory adjustments introduce near-term industry headwinds. Discover how management plans to navigate upcoming compliance transitions. Muthoot Finance reported a 27% year-on-year increase in net profit to ₹2,978 crore for the second quarter FY27, compared to ₹2,345 crore in the corresponding quarter last year. The profit figure was higher than the CNBC-TV18 poll estimate of ₹2,950 crore. Net interest income (NII) rose 34.4% year-on-year to ₹5,365 crore from ₹3,992 crore a year ago, beating the CNBC-TV18 poll estimate of ₹4,525 crore. H1 performance For the half year ended September 30, 2026, consolidated loan assets under management (AUM) grew 42% year-on-year to ₹2,09,317 crore, while consolidated profit after tax (PAT) increased 39% to ₹6,103 crore, as per a press release filed at NSE. Standalone loan AUM rose 42% to ₹1,87,810 crore, while standalone PAT increased 26% to ₹5,527 crore. Consolidated gold loan AUM grew 46% year-on-year to ₹1,93,212 crore, while standalone gold loan AUM increased 43% to ₹1,78,956 crore. The company added around 5 lakh active customers during the half year, taking the total to 69 lakh from 64 lakh. The quantity of gold held as security in its lockers increased to 204 tonnes from 196 tonnes. Standalone gold loan disbursements to new customers stood at ₹20,238 crore, covering 9,93,900 customers during the half year. Raises gold loan growth guidance Commenting on the performance, Managing Director Alexander George Muthoot said the company was raising its gold loan growth guidance for FY27 by an additional 10%. He added, "The RBI's updated gold lending guidelines, effective 1st April 2026, involves a learning curve for us as well as customers, which will get stabilized over few quarters irrespective of which growth trajectory will continue." He said the company's standalone loan AUM reached ₹1,87,810 crore, registering 42% year-on-year and 9% quarter-on-quarter growth. Subsidiaries report mixed performance Belstar Microfinance reported a profit after tax of ₹144 crore in H1 FY27, compared to a loss of ₹160 crore in H1 FY26. Its loan AUM stood at ₹7,876 crore, marginally higher than ₹7,715 crore a year ago. Gross non-performing assets (GNPA) improved to 3.26% from 4.58%, while net non-performing assets (NNPA) declined to 0.07% from 0.26%. Collection efficiency improved to 99.61% from 99.25% during the same period. Belstar added 82 gold loan branches in H1 FY27, taking the total to 163, while its overall branch network increased to 1,362 from 1,287 a year ago. Its gold loan portfolio reached ₹484 crore. Muthoot Homefin's loan AUM increased around 7% year-on-year to ₹3,460 crore in H1 FY27 from ₹3,247 crore. Interest income rose around 13% to ₹202 crore from ₹179 crore, while profit after tax increased around 9% to ₹11 crore from ₹10 crore. Another subsidiary, Muthoot Money reported a 99% year-on-year increase in loan AUM to ₹12,716 crore in H1 FY27 from ₹6,393 crore. Total income rose around 120% to ₹1,103 crore from ₹500 crore, while profit after tax surged around 242% to ₹364 crore from ₹106 crore. Board approves subsidiary merger During the quarter, the board approved the merger of wholly-owned subsidiary Muthoot Money Limited with Muthoot Finance Limited, with April 1, 2027, as the appointed date, subject to regulatory and other approvals. The company said the strategic consolidation would simplify the group structure and unlock combined operational and financial efficiencies. Shares of Muthoot Finance ended 3.54% lower at ₹2,408.60 on the NSE on October 30. Also Read: CDSL Q2 results: Profit grows 24% to ₹174 crore; demat account base expands 17% YoY
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