Will Muthoot Finance Sustain Its Gold Loan Growth Momentum?
About Muthoot Finance
Muthoot Finance remains India’s largest gold loan NBFC with deep retail reach and a long-standing brand reputation. The company is witnessing strong traction as high gold prices and tighter unsecured credit norms push customers toward collateral-backed borrowing.
Q2 FY26 results reflect a major jump in profitability as gold loan AUM continues to expand steadily across urban and semi-urban regions.
Financial Highlights (Q2 & H1 FY26)
| Metric | Value | YoY |
|---|---|---|
| PAT (Q2 FY26) | ₹2,345 Cr | +87% |
| PAT (H1 FY26) | ₹4,391 Cr | +88% |
| Loan AUM (H1 FY26) | ₹1,32,305 Cr | +47% |
| Gold Loan AUM (Q2) | ₹11,723 Cr added | +10% |
| Total Consolidated Loan AUM | ₹1,47,673 Cr | +42% |
PAT ₹2,345 Cr surged due to higher gold loan demand and improved spreads.
Loan AUM ₹1.32 lakh crore reflects expansion across core and non-core lending categories.
Gold loan growth guidance raised to 30–35% for FY26 due to favorable RBI stance and better market dynamics.
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Strengths & Weaknesses
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Valuation & Investment View
Muthoot Finance demonstrates strong earnings visibility supported by a structural shift toward secured lending. Stable AUM growth, rising yields and healthy cost management make the medium-term outlook favorable for investors.
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Investor Takeaway
Gulshan Khera, CFP®, notes that Muthoot Finance continues to benefit from India’s rising preference for collateral-backed lending. He highlights that strong Q2 performance and upgraded guidance indicate sustained momentum. Read more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
