Muthoot Finance Ltd.Record 50% Gold Loan Growth Amid Strong Demand

Muthoot Finance delivered exceptional performance in Q3 FY26, with standalone gold loan AUM reaching a record ₹1,39,658 crore, reflecting 50% year-on-year growth and an addition of ₹36,700 crore over nine months.

Standalone profit after tax surged 91% to ₹7,048 crore for the nine-month period, though this included a one-time recovery interest income of ₹667 crore from legacy NPAs and auctions. Management emphasized that growth is demand-driven rather than gold price-driven, with the average loan-to-value ratio at 57% providing significant cushion against the 75% regulatory limit. The RBI's draft circular removing prior approval requirements for branch openings offers strategic flexibility, though management maintains a disciplined expansion approach.

Subsidiary Muthoot Money achieved remarkable turnaround with 168% AUM growth to ₹8,003 crore and ₹203 crore profit. Management expressed confidence in sustained growth driven by structural tailwinds favoring secured lending over stressed unsecured credit segments, with diverse customer acceptance across salaried and business segments.