Earnings Review
Muthoot Fin Q3 PAT nearly doubles on strong business
This story was originally published at 18:21 IST on 12 February 2026
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--Muthoot Finance Oct-Dec net profit INR 26.56 bln
--Analysts saw Muthoot Finance Oct-Dec net profit INR 23.32 bln
--Muthoot Finance Oct-Dec revenue INR 72.43 bln vs INR 44.23 bln year ago
--Muthoot Finance Oct-Dec net profit INR 26.56 bln vs INR 13.63 bln year ago
--Muthoot Finance Apr-Dec net profit INR 70.48 bln vs INR 36.93 bln year ago
--Muthoot Finance Apr-Dec revenue INR 193.78 bln vs INR 122.45 bln yr ago
--Muthoot Fin consol loan AUM INR 1.65 tln on Dec 31 vs INR 1.11 tln yr ago
--Muthoot Fin gold loan AUM INR 1.40 tln on Dec 31 vs INR 929.64 bln yr ago
--Muthoot Finance Oct-Dec net interest margin 12.77% vs 11.60% year ago
By Divya Moolayattil and Nandini Sinha
MUMBAI – Muthoot Finance Ltd.'s net profit for the December quarter nearly doubled on year due to sharp growth in its business and margins. The company's bottom line exceeded analysts' estimates. The gold financier's net profit for the December quarter rose 95% on year to INR 26.56 billion. Analysts had expected the bottom line to rise to INR 23.32 billion. The net profit was up 13% from the trailing quarter.
The Kerala-based lender's revenue from operations for the December quarter rose nearly 64% on year at INR 72.43 billion. Sequentially, the top line increased 13%. The top line grew mainly due to a 63% year-on-year increase in interest income to INR 71.14 billion.
The gold price per gram was up 75% on year on Dec. 31, while it was up 15.5% from Sept. 30. Any increase in gold prices allows borrowers to borrow higher loan amounts or avail a 'top-up' loan facility against the gold already available with the lender as collateral. As a result, the company's loan portfolio expanded, boosting revenue. Although negligible, the lender's other income rose nearly threefold on year to INR 202 million.
On the expenses front, the company's finance costs were nearly 61% higher at INR 26.47 billion in the December quarter. Employee costs rose 39% to INR 5.76 billion in the December quarter. However, impairment on financial instruments fell sharply to INR 1.11 billion from INR 2.09 billion a year ago. This helped limit the increase in total expenses to 43% at INR 36.81 billion.
The total income for the quarter under review was INR 72.63 billion, up 64% on year.
The lender's loan assets under management were INR 1.65 trillion as on Dec. 31, up 48% on year. The gold loan assets under management rose to INR 1.40 trillion, up 50% on year. Gold loan disbursements to new customers rose nearly 32% on year to INR 207.37 billion as of Dec. 31. The company was holding 205 tonnes of gold as security as of Dec. 31. The company's average loan ticket size was INR 131,104 for the nine months ended December, up 41% on year.
Muthoot Finance's asset quality improved sharply in the December quarter. Its gross stage III asset ratio improved to 1.58% as of Dec. 31, from 4.22% a year ago and 2.25% a quarter ago.
The net interest margin of the company was 12.77% in the December quarter, up 117 basis points from a year ago and 11 bps from a quarter ago. Analysts had expected the company's net interest margin to be 10.5-12.5%.
Muthoot Finance's net profit for Apr-Dec nearly doubled on year to INR 70.48 billion. The top line for the period was INR 193.78 billion, up over 58% on year. Thursday, shares of Muthoot Finance ended at INR 4,066.90 on the National Stock Exchange, up 3.4% from the previous close. The company declared its December quarter results after market hours. END
Edited by Saji George Titus
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