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Muthoot FinCorp, the flagship financial services arm of Muthoot Pappachan Group, has posted a nearly three-fold rise in net profit during the first quarter of FY27 to Rs 705.48 crore, as against Rs 179.3 crore during the April-June quarter of the previous financial year.
The gold loan-focused non-banking financial company has already filed a draft red herring prospectus (DRHP) with market regulator Sebi to raise up to Rs 3,000 crore through an initial public offering. The company said the proceeds from the fresh issue will be used to augment its Tier-I capital base to meet its future capital requirements, including onward lending, arising out of the growth and expansion of its business, including its digital platform and diversified lending portfolio.
During the period under review, the company doubled its total income from Rs 1,573.63 crore to Rs 3,158.83 crore. Its operating income also increased 101 per cent to Rs 3,167.1 crore.
Interest income, a core revenue component for the financing business, stood at Rs 2,781.88 crore in Q1 FY27, against Rs 1,427.40 crore in Q1 FY26. This shows a significant expansion in the company’s underlying income-generating financing business. The company also reported a net profit margin of 22.33 per cent for Q1 FY27, showing meaningful translation of strong revenue performance into profits.
Its stage three loan assets were seen at 0.77 per cent, while net stage three assets were at 0.40 per cent, indicating contained net stressed assets. Its provision coverage ratio was seen at 47.43 per cent.
The NBFC’s capital adequacy ratio (CAR) stood at 18.06 per cent as of June 30, 2026. This, alongside a reported net worth of Rs 7,908.46 crore, shows a strong capital cushion and the ability to expand and grow its operations, the company said in a statement.
During the period, Muthoot FinCorp raised Rs 446.24 crore through a public issue of NCDs; Rs 100 crore through private placement; and Rs 500 crore through another private placement, reflecting the company’s access to institutional/debt capital markets.
“The company demonstrated robust and diversified financing capabilities, with the combined off-book AUM for co-lending and Direct Assignment (DA) standing at Rs 13,177.55 crore as of June 30, 2026,” it said.
According to a Crisil report, the company has the fastest-growing gold loan AUM among peers, with gold loan AUM growing at a CAGR of 59.04 per cent between March 2024 and March 2026.
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