Archive · 13 Nov 2025
Muthoot Finance Reports 87% PAT Jump in Q2 FY26, Upgrades Guidance
Muthoot Finance, a company that gives loans using gold as security, is doing very well.
In the last three months of the financial year (Q2 FY26), their profit jumped by 87% compared to last year, reaching ₹2,345 crore.
Their total amount of loans managed also grew significantly, by 47% in the first half of the year, hitting ₹1.32 lakh crore.
Because things are going so well, the company has increased its prediction for how much their gold loan business will grow this year, now expecting 30-35% growth.
They believe this growth is helped by new rules from the bank, the rising price of gold, and fewer options for people seeking loans without collateral.
Muthoot Finance also plans to grow other types of loans, like personal and home loans, while also improving their technology for easier loan access.
The company sees their gold loan business as a strong and trusted option for many people in the current economy.
Muthoot Finance reported an 87% year-on-year jump in standalone net profit to ₹2,345 crore for Q2 FY26.
Profit after tax for H1 FY26 stood at ₹4,391 crore, an 88% increase over H1 FY25.
Loan AUM grew 47% in H1 FY26 to ₹1.32 lakh crore, with gold loan AUM showing significant increases.
The company upgraded its FY26 gold loan growth guidance to 30-35% from 15%.
Growth is attributed to customer trust, favorable regulations, higher gold prices, and tighter unsecured credit norms.
- Who
- Muthoot Finance Ltd
- What
- Reported an 87% year-on-year increase in standalone profit after tax (PAT) for Q2 FY26 to ₹2,345 crore and upgraded its FY26 gold loan growth guidance.
- When
- November 13, 2025 (reporting on Q2 FY26 and H1 FY26 results)
- Where
- India
- Why
- Strong performance driven by customer trust, favorable regulatory changes, higher gold prices, tighter norms for unsecured credit, and an increase in loan AUM and gold loan AUM.
Muthoot Finance's Positive Financial Performance and Growth Strategy
Concerns and Adjustments in Subsidiaries
Profitability and Loan Growth
Muthoot Finance's Positive Financial Performance and Growth Strategy
Muthoot Finance achieved a standalone net profit of ₹2,345 crore in Q2 FY26, an 87% year-on-year increase, with H1 FY26 PAT growing by 88%. The company's Loan Assets Under Management (AUM) saw a 47% growth in H1 FY26 to ₹1.32 lakh crore, leading to an upgrade in its FY26 gold loan growth guidance to 30-35%. Management attributes this success to customer trust, favorable regulatory changes, higher gold prices, and tighter norms for unsecured credit.
Concerns and Adjustments in Subsidiaries
While the main gold loan business shows strong performance, the company's consolidated Loan AUM grew 42% in H1 FY26 to ₹1.48 lakh crore, and consolidated PAT increased by 74% to ₹4,386 crore. The article does not mention the performance of the microfinance subsidiary or other specific subsidiaries in detail for Q2 FY26.
Diversification and Future Plans
Muthoot Finance's Positive Financial Performance and Growth Strategy
Muthoot Finance intends to expand its non-gold loan portfolio, including personal, home, and business loans, aiming to maintain these at 12-15% of the consolidated loan portfolio. The company is also accelerating digital transformation to improve credit access.
Concerns and Adjustments in Subsidiaries
The company acknowledges the microfinance sector is showing renewed resilience but doesn't detail specific performance metrics for its own microfinance subsidiary in this article. No specific strategies are detailed for improving the microfinance segment's performance if it were underperforming.
- Company
- Muthoot Finance Ltd
- Reporting Period
- Q2 FY26 and H1 FY26
- Standalone PAT (Q2 FY26)
- ₹2,345 crore (up 87% YoY)
- Standalone PAT (H1 FY26)
- ₹4,391 crore (up 88% YoY)
- Standalone Loan AUM (H1 FY26)
- ₹1.32 lakh crore (up 47% YoY)
- Consolidated Loan AUM (H1 FY26)
- ₹1.48 lakh crore (up 42% YoY)
- Consolidated PAT (H1 FY26)
- ₹4,386 crore (up 74% YoY)
- Upgraded FY26 Gold Loan Growth Guidance
- 30-35% (from 15%)
Sources
Inside the Muthoot money machine: How a Kerala family turned gold loans into a billion-dollar empire
Muthoot Finance Q2FY26: Profit jumps 87.5%, raises FY26 guidance
Muthoot Finance Q2 profit surges 87% to Rs 2,345 crore; stock hits record high
Muthoot Finance post 87% rise in its PAT at ₹2,345 crore in Q2 FY26
Muthoot FinCorp posts strong H1 FY26 results