Gold loan financier Muthoot Finance on August 13 reported 90% rise in net profit at Rs 2,046 crore for the quarter ended June 30, 2025, aided by higher loan demand as prices of the precious metal soared. It reported net profit of Rs 1,079 crore in the year-ago period.
The firm's revenue rose 54% to Rs 5,703 crore in Q1FY26 as compared to Rs 3,704 crore in Q1FY25.
Gold prices hit multiple record highs during the quarter. This benefits gold financiers as higher prices increase the collateral value, allowing borrowers to secure larger loans for the same amount of gold.
The company said its board approved additional equity infusion of Rs 500 crore in Muthoot Money Limited and Rs 200 crore in Muthoot Homefin (India) Limited.
On August 13, Muthoot Finance's shares on BSE closed 0.7% lower at Rs 2,515 apiece.
The Kochi-based firm reported highest ever standalone loan assets under management at Rs 1.2 lakh crore as on June 30, 2025, up 42% on an annual basis.
The firm reported highest ever gold loan AUM at Rs 1.13 lakh crore as on March 31, 2025, up 40% YoY.
George Jacob Muthoot, Chairman, said: “Muthoot Finance has begun FY26 with a strong footing with our Consolidated Loan Assets Under Management reaching highest ever level of Rs 1,33,938 crore and Standalone Loan Assets Under Management reaching highest ever level of Rs 1,20,031 crore. It reflects a robust growth of 37% YoY in Consolidated Loan Assets Under Management driven by 237% growth in Gold Loan Assets of Muthoot Money from Rs 1,449 crore to Rs 4,879 crore and 40% growth in Gold Loan Assets of Muthoot Finance from Rs 80,922 crore to Rs 1,13,194 crore. Consolidated Profit after Tax grew by 65% YoY to Rs. 1,974 crores, underpinned by healthy growth in our core gold loan business."
Commenting on the company’s performance, George Alexander Muthoot, Managing Director, said, "We had an impressive start to the year with our Standalone Loan Assets Under Management reaching a historic high of Rs 1,20,031 crore, driven by robust 40% YoY growth in gold loan of Rs. 32,272 crore and a 10% QoQ increase of Rs 10,238 crore. This growth is a testament to our three-pronged strategy to focus on disbursements, operational efficiency, and maintaining healthy margins. As a result, our Standalone Profit after Tax for Q1FY26 grew by 90% to reach Rs 2,046 crore."
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