India’s Muthoot Finance posts quarterly profit jump, raises loan growth outlook

Indian gold loan financier Muthoot Finance on Thursday reported an 87.5% jump in second-quarter profit on strong loan demand amid soaring prices of the precious metal, and raised its gold loan growth outlook for the year.

The firm’s standalone profit for the July to September quarter rose to 23.45 billion rupees ($266.80 million) from 12.51 billion rupees a year earlier.

Gold prices hit a series of record highs during the quarter, lifting the value of gold holdings and benefiting financiers in the sector. The rally boosted collateral values, allowing borrowers to secure bigger loans.

Tighter credit conditions in the unsecured lending market also pushed more borrowers toward gold loans as an alternative source of funds, supporting growth in the segment.

India’s Muthoot Finance beats quarterly profit view on strong loan growth

The company’s standalone loan assets under management rose 47% year-on-year to 1.32 trillion rupees at the end of September.

The firm raised its fiscal 2026 gold loan growth guidance to 30%-35% from 15%, Managing Director George Alexander Muthoot said.

“Favorable regulatory changes by the RBI (Reserve Bank of India) for gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand,” he said.

Its interest income rose 55% to 63.04 billion rupees.

Asset quality improved, with gross stage three loans - or loans overdue for more than 90 days - as percentage of total loans dropping to 2.25% at the end of September from 2.58% three months earlier.

The company’s shares ended 2% higher on the day. They have risen 59% so far in 2025.