Muthoot Finance revises FY26 gold loan growth projection upward

In Q2FY26, Muthoot Finance's consolidated loan AUM increased by 42 percent from last year to Rs 1.47 trillion, while its gold Loan AUM increased by 45 percent from the year-ago quarter to Rs 1.24 trn

Muthoot Finance expects a robust second half of the current financial year  (FY26) on the back of strong traction in its gold loan business, prompting it to revise its full- year gold loan under AUM growth guidance to 30 – 35 per cent, up from 21 per cent earlier. 

 

George Alexander Muthoot, managing director, said that the gold loan segment continues to outperform, supported by improving customer demand. Easier gold loan guidelines, which will come into effect next year, would give a boost to small-ticket gold loans. “Small-ticket loans will become more convenient due to simpler compliance norms for loans below ₹2.5 lakh,” he told Business Standard during an interaction.

 

In Q2FY26, the company’s consolidated loan AUM rose by 42 percent Y-o-Y to ₹1.47 trillion, while gold loan AUM grew by 45 percent to ₹ 1.24 trillion.

 

Highlighting strong growth prospects, Muthoot said, “Scheduled banks currently hold a gold loan portfolio worth ₹13 trillion, compared to ₹3 trillion for NBFCs. Therefore, the market is growing very well for both banks and NBFCs.”

 

On its microfinance subsidiary, whose loan book has reduced from ₹10,500 crore to ₹7,000 amid consolidation, he said the company expects the book to remain stable for the next two quarters before growth gradually resumes in Q1 and Q2 of FY27.

 

Despite weather-related disruptions and broader sectoral stress in the microfinance industry, he said, “Collections have stabilised …FY26 is a painful year for all MFIs, but the sector is now stabilising. FY27 will be better.”