Muthoot Finance on Thursday reported a 87.4 percent year-on-year rise in its standalone profit after tax to Rs 2,345 crore for three months ended September 2025, aided by higher loan demand amid soaring prices of the precious metal.
The gold loan NBFC had posted a profit after tax of Rs 1,251 crore in the same quarter last year.
The board of the company has also approved the plan to raise Rs 35,000 crore by issuing redeemable Non-Convertible Debentures (NCD) by way of private placement, in multiple tranches.
The net interest income (NII) rose 58.5 percent to Rs 3,991 crore in the quarter under review from Rs 2,518 crore in the year ago period, the company said.
George Jacob Muthoot, Chairman said "We are pleased to report sustained continued growth momentum in our Consolidated Loan Assets Under Management which have reached a historic high of Rs 1,47,673 crores driven by robust performance of our core gold loan business."
George Alexander Muthoot, Managing Director, added, "Favorable regulatory changes by the RBI for gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand. We will continue to expand our non-gold loan portfolio including personal loan, home loan and business loan while maintaining our total non-gold loan AUM including microfinance at about 12-15% of the consolidated loan portfolio."
"The microfinance sector is showing renewed resilience following the implementation of regulatory guardrails and improved underwriting, auguring well for future performance. We are accelerating our digital transformation to deliver faster, more seamless credit access for millions of customers nationwide," he further noted.
Gold reached multiple record highs during the quarter, increasing the value of gold holdings and benefiting financiers in the sector. The rally also enhanced collateral values, enabling borrowers to secure larger loans.
With tighter credit conditions in the unsecured lending market, more borrowers turned to gold loans as an alternative funding source, driving growth in the segment.
The company’s standalone loan assets under management (AUM) grew 47 percent year-on-year (YoY), reaching Rs 1,32,000 crore at the end of September.
Shares of Muthoot Finance settled higher at Rs 3,400 per share on the NSE, up 2.26 percent.
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