Muthoot Finance Q3: Profit Doubles, Growth Outlook Turns Sharper as Gold Loan Demand Surges

Muthoot Finance delivered a blockbuster third quarter, with standalone net profit nearly doubling to Rs.2,656 crore, driven by strong interest income and record gold loan disbursements. The country’s largest gold loan NBFC had reported Rs.1,363 crore profit in the same quarter last year. Revenue from operations surged 64% YoY to Rs.7,243 crore, supported by a 63% rise in interest income, highlighting robust lending momentum amid tight liquidity in unsecured credit markets.

Loan AUM touched a historic high of Rs.1.48 lakh crore in 9MFY26, up 51% YoY, with gold loans accounting for Rs.1.40 lakh crore. In Q3 alone, gold loan AUM expanded by Rs.14,740 crore, registering a strong 12% sequential jump. Given the accelerating demand, the company has raised its FY26 loan growth guidance sharply to 45%, up from the earlier 30–35% outlook, signalling confidence in sustained credit demand.

Management attributed the surge to tighter availability of unsecured personal loans, stress in microfinance and rising preference for secured borrowing through gold-backed credit. The RBI’s decision to remove prior approval for branch expansion for large gold loan NBFCs has further strengthened expansion visibility, reflecting regulatory confidence in established players. Muthoot Finance currently operates a consolidated network of 7,541 branches and added 150 new outlets during the first nine months of FY26.

On a consolidated basis, total loan AUM reached Rs.1.65 lakh crore, growing 35% during the period. Subsidiary Belstar Microfinance returned to profitability with Rs.51 crore net profit after earlier losses, indicating improving asset quality trends. Meanwhile, Muthoot Money continued its strong growth trajectory, with its loan book tripling to Rs.8,003 crore and profit rising to Rs.97 crore.

With gold prices remaining firm and credit demand shifting toward secured lending, Muthoot Finance appears well-positioned for sustained growth momentum. The stock reacted positively to the results, closing about 3% higher at Rs.4,070 on the NSE, reflecting improving investor sentiment around the gold loan space.