Muthoot Finance Q1 result: PAT jumps 43% to ₹2,825 crore; loan AUM crosses ₹1.91 lakh crore
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Muthoot Finance Ltd on Saturday reported a 43% year-on-year (YoY) rise in consolidated profit after tax (PAT) to ₹2,825 crore for the quarter ended June 30 (Q1), driven by robust growth in its gold loan business and a sharp expansion in its loan book.
The company's consolidated loan assets under management (AUM) grew 43% YoY to an all-time high of ₹1,91,532 crore, compared with ₹1,33,938 crore in the corresponding quarter last year. On a sequential basis, the consolidated loan AUM increased by ₹9,616 crore, or 5%, during the quarter.
The board of directors approved the unaudited standalone and consolidated financial results for the first quarter of FY27 at its meeting held on Saturday.
On a standalone basis, loan AUM rose 43% YoY to ₹1,72,053 crore, while profit after tax increased 25% to ₹2,550 crore.
The company's consolidated gold loan AUM surged 48% YoY to ₹1,75,527 crore, underscoring strong demand for gold-backed lending.
Chairman George Jacob Muthoot said the company had started FY27 on a strong note, with consolidated loan AUM reaching a record level, supported by robust growth in its core gold loan business. "Our subsidiaries have also maintained strong momentum, contributing meaningfully to consolidated loan assets, while the core gold loan business continues to drive earnings growth," he said.
He added that the growing need for quick, reliable and affordable credit, coupled with the company's extensive branch network and investments in digital capabilities, positions Muthoot Finance well to sustain its growth trajectory.
Managing Director George Alexander Muthoot said standalone loan AUM touched a historic high, led by a 44% YoY increase in gold loan AUM to ₹1,63,298 crore. He attributed the performance to the company's focus on higher disbursements, operational efficiency and maintaining healthy margins.
Muthoot said it continues to strengthen its digital capabilities to make credit access faster and more seamless, while improving operational efficiency and customer experience.
The company also highlighted the strong long-term outlook for the gold loan industry, citing increasing customer acceptance of gold-backed lending and rising participation from organised players. It said growing awareness of gold loans as a reliable source of secured credit, along with favourable industry trends, is expected to support sustained growth in the segment.