Muthoot Finance Ltd.Record 54% AUM Growth, PAT Doubles

Muthoot Finance delivered exceptional Q4 FY26 results with consolidated gold loan AUM reaching a record ₹1,65,000 crore, reflecting historic 54% year-on-year growth.

Standalone profit after tax surged 95% to ₹10,134 crore, while consolidated PAT nearly doubled with 98% growth to ₹10,607 crore. The company declared its highest-ever dividend of ₹30 per share, marking the 14th consecutive year of payouts since IPO. Net interest yield expanded to 20.76%, driven by pricing increases and one-time income, though management indicated yields may stabilize as borrowing costs rise. For FY27, management provided conservative 15% AUM growth guidance with plans to add 200-300 branches.

Management addressed competitive concerns by emphasizing operational complexity as a moat and dismissed new entrants as opportunistic rather than focused players. The decline in customer count reflects portfolio maturation toward higher-ticket customers rather than competitive displacement. Despite regulatory NPA classification increases, management stressed all NPAs remain fully recoverable with Stage 3 LTV at only 58% including interest, providing significant collateral cushion.