Muthoot Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Muthoot Finance Ltd filed with BSE on 20 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Muthoot Finance reported consolidated gold loan AUM of Rs 1,65,000 crores, up 54% year-on-year, and standalone AUM of Rs 1,64,000 crores with standalone profit after tax of Rs 10,134 crores, up 95% year-on-year. Consolidated AUM across all subsidiaries stood at Rs 1,81,916 crores, up 49%, with consolidated profit after tax of Rs 10,607 crores, up 98% year-on-year. Management discussed yield movements this quarter attributed partly to auction income, ARC income and a pricing increase, along with a rise in stage 2 and stage 3 assets that it linked to a shift to borrower-wise NPA classification mandated by RBI.
Numbers mentioned
Consolidated gold loan AUM: INR 1,65,000 crores (FY26)
p. 2
“We have the highest ever consolidated gold loan AUM of Muthoot Finance and its subsidiaries at INR 1,65,000 crores, which is a historic growth and has a growth of INR 57,000 crores or 54% last year.”
George A. Muthoot, page 2 of the filed PDF · View the filing
Standalone loans: INR 1,64,000 crores (FY26)
p. 3
“The standalone loans stands at INR 1,64,000 crores and the highest ever standalone profit after tax of INR 10,134 crores.”
George A. Muthoot, page 3 of the filed PDF · View the filing
Standalone profit after tax: INR 10,134 crores (FY26)
p. 3
“The standalone loans stands at INR 1,64,000 crores and the highest ever standalone profit after tax of INR 10,134 crores.”
George A. Muthoot, page 3 of the filed PDF · View the filing
Consolidated AUM: INR 1,81,916 crores (As of March 2026)
p. 2
“The consolidated AUM of Muthoot Finance and all its subsidiaries stands at INR 1,81,916 crores as of March, which shows a growth of INR 59,000 crores or 49% last year.”
George A. Muthoot, page 2 of the filed PDF · View the filing
Consolidated profit after tax: INR 10,607 crores (FY26)
p. 3
“And the consolidated profit after tax stands at INR 10,607 crores, again up by 98% year-on-year.”
George A. Muthoot, page 3 of the filed PDF · View the filing
Dividend: 300% or INR 30 per share (FY26)
p. 3
“Muthoot Finance declared the highest dividend of 300% or INR 30 per share and this is the 14th year of consistent dividend declaration since our IPO in 2011.”
George A. Muthoot, page 3 of the filed PDF · View the filing
New branches opened: 177 (FY26)
p. 3
“During the year, we opened 177 new branches by the group and we also have received multiple industry recognitions as Muthoot Finance is certified as India's most trusted financial services brand for 10th year in a row by TRA Brand Trust Report 2026.”
George A. Muthoot, page 3 of the filed PDF · View the filing
Belstar collection efficiency: 99.85% (FY26)
p. 4
“The collection efficiency in the microfinance increased by 0.69% and now stands at 99.85%, which was 99.16% last year.”
George A. Muthoot, page 4 of the filed PDF · View the filing
Muthoot Home Finance loan AUM: INR 3,485 crores (FY26)
p. 4
“At Muthoot Home Finance, the loan AUM stands at INR 3,485 crores versus INR 2,900 crores in the last year, a growth of 17%.”
George A. Muthoot, page 4 of the filed PDF · View the filing
Muthoot Home Finance profit after tax: INR 45 crores (FY26)
p. 4
“Interest income increased by 36%. Profit after tax stands at INR 45 crores.”
George A. Muthoot, page 4 of the filed PDF · View the filing
Muthoot Money gold loan AUM: INR 9,794 crores (FY26)
p. 4
“And gold loan, the AUM stands at INR 9,794 crores versus INR 3,900 crores last year, a growth of 151%.”
George A. Muthoot, page 4 of the filed PDF · View the filing
Muthoot Money profit after tax: INR 338 crores (FY26)
p. 4
“The profit after tax stood at INR 338 crores this year versus INR 12 crores last year.”
George A. Muthoot, page 4 of the filed PDF · View the filing
Interest accrual: INR 963 crores (Q4 FY26)
p. 15
“Interest accrual, it's INR 963 crores.”
Oommen K. Mammen, page 15 of the filed PDF · View the filing
Average gold loan LTV: 57% (Current)
p. 16
“So, today, our goal loan LTV is 57%. The average goal on in our book is 57%.”
George A. Muthoot, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Standalone AUM growth — 15% · FY27
stated conditionally by George A. Muthoot
p. 11
“Always in the first quarter, we have always been giving a guidance of 15% only. So, as usual, last 10 years, we have been giving 15% guidance in the first quarter. So, in Quarter 2 or Quarter 3, we will see how it is panning out and probably revise it.”
George A. Muthoot, page 11 of the filed PDF · View the filing
Branch expansion — 200-300 branches · FY27
stated firmly by George A. Muthoot
p. 11
“Okay, so probably last year, we opened 170 branches or so. This year, maybe 200-300 branches.”
George A. Muthoot, page 11 of the filed PDF · View the filing
Belstar gold branch expansion — another 200 branches
stated as an aspiration by George A. Muthoot
p. 12
“I think Belstar, we were thinking of opening another 200 branches or so, because it was only about 100 branches.”
George A. Muthoot, page 12 of the filed PDF · View the filing
Yield level — current rate
stated conditionally by George A. Muthoot
p. 13
“I think, our treasury finance says that the borrowing cost is looking of north. So, probably we expect borrowing cost also may go up in the coming. So, probably we may not be able to reduce anymore. We may be able to maintain at this rate.”
George A. Muthoot, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the company finances only household ornaments, not bullion or coins, so the import tax hike does not affect it.
Answered by George A. Muthoot
Asked by Shubham Gupta: Whether recent government moves against gold imports would affect Muthoot's revenue.
p. 5
“So, I think the government of India has said that you should reduce the import of gold and they have actually increased the tax also from 6% to 15%. So, because we do not finance any gold purchase, we do not finance any gold bullion, etc., it actually does not affect Muthoot.”
George A. Muthoot, page 5 of the filed PDF · View the filing
CFO confirmed there was auction income and ARC income contributing to the yield this quarter.
Answered by Oommen K. Mammen
Asked by Rushabh Doshi: Whether the yield increase included one-off NPA recoveries or ARC income.
p. 5
“So, disbursement, it will be something similar. We have not looked at exact numbers. The second question, was there any additional income? So, there was an auction income of about 50 crores. ARC, I think it is around INR 35 crores.”
Oommen K. Mammen, page 5 of the filed PDF · View the filing
Management said new entrants are not focused gold loan players and competition will sort itself out over time as it is operationally intensive.
Answered by George A. Muthoot
Asked by Abhijit Tibrewal: How is competitive intensity in the gold finance sector trending given new entrants with deep pockets.
p. 6
“We are a company which is focused on gold loan. The new players who are coming, maybe deep pockets, maybe lesser cost of funds, they are not focused gold loan players.”
George A. Muthoot, page 6 of the filed PDF · View the filing
Management explained the increase came from auction income, ARC income, and a pricing increase tied to a sharp rise in gold prices.
Answered by Oommen K. Mammen
Asked by Piran Engineer: Whether the yield movement from 20.34% to 20.76% included one-off interest recovery.
p. 8
“We do not want to get into the specifics of the yield increase. So, last two quarters, there have been a lot of increase in the gold price, especially in last fourth quarter. So, we have charged some extra for those disbursements.”
Oommen K. Mammen, page 8 of the filed PDF · View the filing
Management attributed the rise to RBI's advice to classify NPAs at the borrower level rather than the loan level.
Answered by Oommen K. Mammen
Asked by Rajiv Mehta: Why did stage 2 and stage 3 assets increase so much this quarter.
p. 10
“So, the stage 3 increase has happened primarily because RBI has advised us to do a borrower wise classification. So, earlier we were doing this classification at the loan level.”
Oommen K. Mammen, page 10 of the filed PDF · View the filing
Management said these are unsecured personal loans, mostly cross-sold to the existing gold loan customer base.
Answered by George A. Muthoot
Asked by Nischint Chawathe: What is driving growth in non-gold loans.
p. 12
“These are unsecured personal loans, salaried personal loan and unsecured personal loans, which is doing actually quite well. We have about INR 4,000 crores of portfolios, mostly cross-sell.”
George A. Muthoot, page 12 of the filed PDF · View the filing
CFO declined to commit to a sustainable yield level, saying pricing is short-term and can be adjusted either way.
Answered by Oommen K. Mammen
Asked by Vikram Subramanian: Whether the sustainable yield level has now shifted higher given repeated one-offs.
p. 13
“So, we don't want to give a view that the same rates will continue.”
Oommen K. Mammen, page 13 of the filed PDF · View the filing
Management said RBI allows up to 85% and the company sees no much risk at that level, though historically it has gone up to 75%.
Answered by Oommen K. Mammen
Asked by Sheelkumar Shah: What LTV range is considered comfortable from a risk management perspective.
p. 16
“I think in the last 10 years, it is up to 75%. Right now, RBI allows up to 85%.”
Oommen K. Mammen, page 16 of the filed PDF · View the filing
Risks flagged
Rising competitive intensity from new, well-capitalised NBFCs entering gold financing
p. 6
“The competition is there. New and newer people are coming.”
George A. Muthoot, page 6 of the filed PDF · View the filing
Borrowing costs expected to rise
p. 13
“I think, our treasury finance says that the borrowing cost is looking of north.”
George A. Muthoot, page 13 of the filed PDF · View the filing
Decline in customer count due to churn among smaller-ticket customers
p. 7
“we have lost about 15 lakh customers there.”
George A. Muthoot, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.