Muthoot Finance Q3 Profit Nearly Doubles on Gold Loan Boom
Muthoot Finance reported a sharp rise in third-quarter earnings, with net profit nearly doubling to 26.56 billion rupees for the period ended December 31, compared with 13.63 billion rupees a year earlier. The strong performance was fueled by robust demand for gold loans amid record-high gold prices during the October–December quarter.
Higher gold prices boosted the value of pledged collateral, enabling customers to borrow larger amounts against the same quantity of gold. At the same time, tighter lending norms in the unsecured loan segment drove more borrowers toward gold-backed financing. The company’s standalone loan assets under management surged 51% year-on-year to 1.48 trillion rupees, while interest income jumped about 63% to 71.14 billion rupees.
Asset quality showed improvement, with gross stage-three loans declining to 1.58% of total loans at the end of December, down from 2.25% in the previous quarter. Reflecting strong growth momentum, Muthoot Finance in November raised its fiscal 2026 gold loan growth forecast to 30%–35% from 15% earlier. Shares of the company closed 3.4% higher ahead of the earnings announcement.
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