Transcript of Investor Concall held on Monday, May 11, 2026, to discuss the Audited Financial Results of the Company for the quarter and Financial year ended March 31, 2026
MUTHOOTCAP · price
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Muthoot Capital Services held its Q4 FY '26 earnings call discussing audited financial results. The company achieved AUM of INR 3,500 crores (including managed book), with MCSL portfolio growing 29% from INR 2,118 crores to INR 2,758 crores. However, co-lending portfolio degrew significantly from INR 940 crores to INR 595 crores as management shifted focus to direct lending. GNPA stood at 6.96% (with interest accrual), including a one-time recognition of INR 15.51 crores corporate loan (Up Money) as NPA. Annual impairment expense was INR 76 crores versus INR 18-18.5 crores last year. Management highlighted significant digital transformation including AI-based collections (100% of pre-delinquency calls done by AI agents), diversified into multi-product offerings (CV, used car, loyalty loans), and reduced cost of funds by INR 0.60. The company targets INR 3,000 crores disbursement and pretax ROA of 2-2.5% for FY '27, with long-term aspiration of INR 10,000 crores AUM by FY '28-'29.
While AUM growth is evident, profitability remains subdued due to heavy investments in technology, new verticals, and elevated impairment costs. Long-term shareholders expressed frustration over lack of dividends and capital appreciation. The company is in discussions with equity investors and expects improved performance as new verticals reach breakeven.