Muthoot Finance Gains 9% on Strong Q2FY26 Results; Management Lifts AUM Guidance to 30–35%

Muthoot Finance delivered a robust financial and operational performance in Q2FY26, reinforcing its dominant position in the gold loan financing space. Strong momentum in loan growth, higher asset yields, and record profitability contributed to the company’s strong quarterly performance and boosted investor sentiment, leading to a 9% surge in the stock price.

Total Income Jumps 47.91% YoY.

The company’s consolidated total income rose sharply to ₹73,326 million, reflecting:

• 13.07% QoQ growth
  
  
• 47.91% YoY growth
  
  

This strong rise was supported by:

• Healthy traction in gold loan disbursements
  
  
• Improved interest yield profile
  
  
• A more favourable product mix
  
  

Muthoot continued to benefit from resilient customer demand and disciplined pricing strategies, further solidifying revenue visibility.

AUM Posts Strong Double-Digit Growth

Muthoot Finance’s Loan Assets Under Management (AUM) expanded to ₹12,23,493 million, registering:

• 10% QoQ growth
  
  
• 47% YoY growth
  
  

Similarly, Gold Loans Under Management saw a strong rise of:

• 11% QoQ
  
  
• 45% YoY
  
  

This consistent growth indicates strong demand across customer segments, driven by liquidity requirements, rising gold prices, and the company’s deep branch network.

Management Hikes FY26 AUM Guidance to 30–35%

Encouraged by the strong growth momentum, the management revised its full-year AUM growth guidance upward to 30–35%, significantly higher than the earlier estimate of 15%.

This sharp upgrade reflects:

• Strong traction in gold loan demand
  
  
• A recovery in microfinance and non-gold segments
  
  
• Higher loan disbursement velocity
  
  

The upgraded guidance signals management’s high confidence in sustaining momentum through FY26.

NIM Stable at 12.86% in Q2FY26

Net Interest Margin (NIM) remained strong at 12.66%, supported by:

• Improved yields
  
  
• Higher contribution from gold loans
  
  
• Better pricing discipline
  
  

The company continues to maintain one of the highest NIMs in the NBFC sector.

Profit After Tax Surges 82.54% YoY

Muthoot Finance reported Profit After Tax (PAT) of ₹24,117 million, marking:

• A significant 82.54% YoY jump
  
  
• Its highest-ever consolidated PAT for any first half
  
  

This performance was driven by rising loan volumes, strong margins, and cost efficiencies across operations.

Investor Reaction: Stock Jumps 9%

The strong Q2FY26 numbers, along with the upward revision in AUM guidance and record profitability, resulted in a sharp 9% rally in Muthoot Finance’s stock. Investors responded positively to:

• The strong visibility of growth
  
  
• Improved profitability metrics
  
  
• Healthy demand environment
  
  
• Stable asset quality
  

Outlook

With rising gold prices, robust demand for gold-backed loans, and diversification into microfinance and other segments, Muthoot Finance is well-positioned to sustain its growth trajectory.
The upgraded guidance and record-breaking financial performance further highlight the company’s strong fundamentals heading into FY26.