macro

Muthoot Finance Posts 36% Profit Jump on Gold-Loan Demand

India's biggest gold lender reported a 36% jump in consolidated net profit for the September quarter, though its bad-loan ratio rose sharply.

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what happened

According to Moody's, Muthoot Finance, India's largest gold-loan company, posted consolidated net profit of 3,278 crore rupees for the second quarter. That is 36% higher than the 2,412 crore recorded a year earlier. Its business expanded 42%, but asset quality weakened over the same period.

On a standalone basis, net profit rose 27% to 2,977 crore from 2,345 crore. Consolidated assets under management reached 2.09 lakh crore at the end of September, of which 1.93 lakh crore was gold loans.

Meanwhile, the standalone gross non-performing asset ratio climbed to 3.87% from 2.28% three months earlier. Subsidiary Belstar Microfinance lifted its profit to 78 crore from 66 crore in the first quarter, while its gross NPA ratio fell to 3.26% from 4.58% a year before.

why it matters

Two points matter for markets: demand for gold-backed lending remains strong, but the fast rise in bad loans may concern investors in non-bank lenders. Gold prices directly affect the value of collateral and lending volumes, so the metal's moves matter for the whole segment.

market impact

Muthoot Finance shares: profit and volume growth support them, while rising bad loans weigh on them

  • Muthoot Finance shares mixed — strong profit and volume growth are offset by weaker asset quality

tags

instruments

Muthoot FinanceGoldINR

sources

  1. Gold Loan Boom Lifts Muthoot's Q2 Profit by 36% — Moody's, 1 November 2026 at 04:12 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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