Muthoot Finance Q1: Results better than expected, asset quality improved

News Topical, Digital Desk : Gold loan company Muthoot Finance has released its first quarter results. The company's performance has been much better than expected. The company has also recorded record performance during this period. The company's profit has been the highest profit of any quarter. The average gold loan AUM at each branch also reached a record level. The results were presented after the market closed. The stock closed with a decline of more than one percent in Thursday's session.

How were the quarterly results?

The company's profit grew 89.6% year-on-year to Rs 2,046 crore, which is the highest level ever for any quarter. The company's profit in the same quarter of the previous financial year was Rs 1,079 crore, while the CNBC-TV18 poll had estimated a profit of Rs 1,674 crore. Net interest income grew 50.6% year-on-year to Rs 3,473 crore, from Rs 2,305 crore in the same quarter last year. This figure is higher than the CNBC-TV18 estimate of Rs 3,199 crore. Net interest margins (NIMs) increased from 11.51% to 12.15% during the quarter. On a consolidated basis, the company's asset quality improved and the ratio of gross loan assets to stage-III assets declined from 3.41% in the March quarter to 2.58%. In the quarter ended June 30, 2025, Muthoot Finance's consolidated loan assets under management grew 37% year-on-year to a record high of Rs 1.33 lakh crore. On a standalone basis, AUM grew by 42% to Rs 1.2 lakh crore. The company's average gold loan AUM per branch reached a record high of Rs 23.21 crore. Gold loan AUM also reached a record high of Rs 1.13 lakh crore, an increase of 40% year-on-year. 

How were other businesses Muthoot Homefin's loan AUM grew 41% year-on-year to Rs 3,096 crore in Q1 FY26, from Rs 2,199 crore last year. Interest income grew 49% to Rs 86 crore from Rs 58 crore in the same quarter last year. Muthoot Money's loan AUM grew 202% year-on-year to Rs 5,000 crore from Rs 1,657 crore last year. Total income grew 255% to Rs 213 crore. 

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