Muthoot FinCorp, the flagship financial services arm of Muthoot Pappachan Group, reported nearly three-fold year-on-year (Y-o-Y) rise in net profit to ₹705.48 crore in the April-June (Q1) quarter of 2026-27 (FY27) compared with ₹179.3 crore in the year-ago period.
The gold loan-focused non-banking financial company’s (NBFC’s) total income doubled Y-o-Y to ₹3,158.83 crore against ₹1,573.63 crore in the first quarter of 2025-2026 (FY26). It’s operating income rose 101 per cent to ₹3,167.1 crore.
The company’s interest income, a core revenue component of the firm’s financing business, stood at ₹2,781.88 crore in Q1FY27 compared with ₹1,427.40 crore in Q1FY26. Net profit margin of the company rose 22.33 per cent in the April-June quarter, showing a meaningful translation of strong revenue performance into profits.
The NBFC’s stage three loan assets increased 0.77 per cent, while net stage three assets rose 0.40 per cent in Q1FY27, indicating contained net stressed assets. Its provision coverage ratio stood at 47.43 per cent.
The NBFC’s capital adequacy ratio (CAR) stood at 18.06 per cent as of quarter ended June 30, 2026. This, alongside a reported net worth of ₹7,908.46 crore, shows a strong capital cushion and the ability to expand and grow its operations, the company said in a statement.
During the period, Muthoot FinCorp raised ₹446.24 crore through public issue of non-convertible debentures (NCDs); ₹100 crore through private placement; and ₹500 crore through another private placement, reflecting the company’s access to institutional or debt capital markets.
“The company demonstrated robust and diversified financing capabilities, with the combined off-book assets under management (AUM) for co-lending and direct assignment (DA) standing at ₹13,177.55 crore as of June 30, 2026,” it said.
According to a report by ratings agency Crisil, the company has the fastest-growing gold loan AUM among peers, with gold loan AUM increasing at a CAGR of 59.04 per cent between March 2024 and March 2026.
The NBFC has already filed a draft red herring prospectus (DRHP) with the market regulator to raise up to ₹3,000 crore through an initial public offering. The company said the proceeds from the fresh issue will be used to augment its Tier-I capital base to meet its future capital requirements arising out of the growth and expansion of its business, including its digital platform and diversified lending portfolio.