Muthoot Finance stock: Q2 profit rises as gold loans expand

Muthoot Finance reported stronger earnings for the quarter ended September 30, 2026, with growth led by its gold-loan business. The Financial Express reported on October 31 that standalone profit after tax rose 27 percent year over year to INR 2,977 crore in Q2 FY27.

Profit and loan assets accelerate

Standalone total income increased 37 percent to INR 8,842 crore, while profit before tax rose 27 percent to INR 3,993 crore. Consolidated profit after tax reached INR 3,278 crore, up 36 percent from the year-earlier quarter and 16 percent from the first quarter.

Consolidated loan assets under management climbed 42 percent year over year to INR 2,09,317 crore at the end of September. Consolidated gold-loan assets rose 46 percent to INR 1,93,212 crore, keeping secured lending against gold at the center of the group’s expansion.

Guidance rises as regulation changes

Managing Director Alexander George Muthoot said the company would raise its fiscal 2027 gold-loan growth guidance by an additional 10 percent. The company also said lenders and customers were still adapting to the Reserve Bank of India’s revised gold-lending rules, which took effect on April 1, 2026.

The group added 201 branches during the quarter, taking its standalone network to 5,230. Its consolidated network reached 7,904 branches, while the active customer base increased from 64 lakh to 69 lakh in the first half of fiscal 2027.

Merger adds a structural catalyst

Muthoot Finance’s board approved the proposed merger of wholly owned subsidiary Muthoot Money with the parent. April 1, 2027 is the appointed date, but the transaction remains subject to regulatory and other approvals. The company said the combination could simplify the group structure and improve operating efficiency.

Credit costs remain an investor watchpoint. Standalone credit losses rose to INR 188 crore in the first half of fiscal 2027 from INR 99 crore a year earlier, while the capital adequacy ratio stood at 19.81 percent at the end of the second quarter.

Gold lending defines the business

Muthoot Finance provides personal and business loans secured by gold jewellery, with services aimed at customers seeking short-term liquidity and limited access to formal credit. Its main market is India, supported by a broad branch network and online gold-loan services. In the gold-loan segment, FundsTiger compares Muthoot Finance with Manappuram Finance and IIFL Gold Loan, making those lenders relevant listed or branded peers. Muthoot is more concentrated in gold-backed lending, while the peer set also includes broader consumer-finance and microfinance businesses.

India’s financial sector remains the key market backdrop for gold-loan lenders; see the latest market coverage.

More company developments will shape how investors assess Muthoot Finance’s growth, credit costs and regulatory execution.