Muthoot Capital Services Q2 FY26 results: net profit down 82.3% to ₹2.83 crore, revenue up 41.3%

How did Muthoot Capital Services perform in Q2 FY26?

Muthoot Capital Services reported standalone revenue of ₹153.54 crore for Q2 FY26, up 41.3% from ₹108.65 crore in Q2 FY25 and 5.7% from ₹145.32 crore in Q1 FY26. Total income was ₹155.42 crore, against ₹109.79 crore a year earlier and ₹147.50 crore in the previous quarter. EBITDA and its margin were not reported in the figures provided.

Profit before tax was ₹3.72 crore in Q2 FY26, compared with ₹21.62 crore in Q2 FY25 and a loss of ₹6.17 crore in Q1 FY26. Net profit was ₹2.83 crore, down 82.3% from ₹15.97 crore a year earlier, while basic EPS was ₹1.72 against ₹9.71 and a loss of ₹2.84 in Q1 FY26. The profit margin was 1.8%, down 12.9 percentage points year on year.

What changed in Muthoot Capital Services' costs and profit?

Total expenses rose to ₹151.70 crore in Q2 FY26 from ₹88.18 crore in Q2 FY25, an increase of ₹63.52 crore, or 72.0%. Finance costs were the largest reported cost line at ₹81.39 crore, up ₹30.67 crore or 60.5%; employee costs increased ₹5.42 crore or 22.9% to ₹29.09 crore, and other expenses rose ₹6.81 crore or 41.3% to ₹23.30 crore. Depreciation was ₹1.21 crore, up ₹0.27 crore.

Other income increased by ₹0.73 crore, or 64.0%, to ₹1.87 crore from ₹1.14 crore. There was no exceptional item in either quarter. Tax expense fell by ₹4.76 crore, or 84.2%, to ₹0.89 crore from ₹5.65 crore. Against Q1 FY26, total expenses fell by ₹1.96 crore, while other income declined by ₹0.31 crore to ₹1.87 crore.

How did the first half of FY26 go?

In H1 FY26, standalone revenue was ₹298.86 crore, up 43.2% from ₹208.66 crore in H1 FY25, and total income was ₹302.91 crore, up 44.3% from ₹209.98 crore. Profit before tax moved from ₹36.13 crore to a loss of ₹2.45 crore, while net profit moved from ₹26.77 crore to a loss of ₹1.84 crore. Basic EPS was a loss of ₹1.12, compared with EPS of ₹9.71 a year earlier.

What do the balance sheet and cash flow show?

Total assets rose to ₹3,731.0 crore on 30 September 2025 from ₹3,584.5 crore on 31 March 2025, while total equity was ₹656.96 crore against ₹658.06 crore. Cash fell to ₹180.29 crore from ₹296.91 crore. The presentation reported total borrowings of ₹2,995 crore in Q2 FY26; comparative borrowings were not given in the facts for the previous balance-sheet date.

For H1 FY26, operating cash flow was negative ₹245.74 crore, compared with negative ₹381.64 crore in H1 FY25. Investing cash flow was negative ₹6.4 crore against negative ₹14.96 crore, while financing cash flow was ₹135.51 crore compared with ₹493.16 crore. Capital expenditure was ₹0.25 crore, against ₹0.0 crore in the earlier period.

How has Muthoot Capital Services done over the last 8 quarters?

Revenue rose in each of the last five quarters on a year-on-year basis and reached ₹153.54 crore in Q2 FY26, the highest level in the reported trend. The lowest revenue was ₹96.11 crore in Q3 FY24, while the company’s revenue rose from ₹108.65 crore in Q2 FY25 to ₹125.68 crore, ₹137.32 crore, ₹145.32 crore and then ₹153.54 crore in the following quarters.

Net profit peaked at ₹15.97 crore in Q2 FY25 and fell to ₹12.56 crore in Q3 FY25, ₹6.42 crore in Q4 FY25 and a loss of ₹4.67 crore in Q1 FY26. It returned to ₹2.83 crore in Q2 FY26. EBITDA margin figures were not reported, so the trend in margin could not be determined.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half year ended 30 September 2025 on 15 October 2025. The same-day investor presentation reported total borrowings of ₹2,995 crore, AUM of ₹3,284 crore, GNPA of 6.46% including accrued interest and NNPA of 3.07%. It also reported that CRISIL retained its A+ rating and upgraded the outlook to Positive from Stable. The filings provided do not report a dividend, fund raise or appointment made around the result.

What did Muthoot Capital Services' management say?

Management said Q2 FY26 was a mixed bag because the company returned to profit after a Q1 loss while macroeconomic conditions were less conducive to business. The CEO said retail two-wheeler sales fell from 48.12 lakhs in Q1 to 40.16 lakhs in Q2, and that heavy rains and floods in northern and eastern markets also affected the quarter. The company said Q2 disbursement was ₹535 crore, down 13% from ₹618.58 crore in Q1 FY26.

Management identified elevated slippages, credit cost, repossession recoveries and monsoon-related disruption as risks. It said co-lending partners had been reduced to two, with co-lending disbursement down 34% sequentially as ICE partnerships were wound down. Management said an equity raise could be pushed to Q1 FY27 if Q3 targets were met, while the long-term objective was ₹10,000 crore AUM and 4% ROA by 2028.

How did Muthoot Capital Services shares react?

After the filing, Muthoot Capital Services fell 2.1% in five minutes, 0.3% in 15 minutes and 0.7% in 30 minutes. It closed the reaction day down 6.9% from the previous close of ₹274.85; by the next day’s close, the stock was down 7.1% from that pre-results close, and by five sessions it was down 6.9%.

The NBFC sector’s median move was 0.0% on the reaction day, 0.0% by the next day and 0.7% by five sessions. Muthoot Capital Services therefore underperformed the industry median by 6.9 percentage points on the reaction day, 7.1 percentage points by the next day and 7.5 percentage points by five sessions. Earlier result-day moves were negative on five of the six listed occasions, including 11.3% on 5 August 2025.

How did other Non Banking Financial Company (NBFC) companies do?

Among 228 other NBFC companies compared for the quarter, the median revenue growth was 5.2%. Muthoot Capital Services reported revenue growth of 41.3%, with 60 peers growing faster than the company and 168 peers growing slower than the company. Of the 257 peers for which profit was compared, 128 reported higher profit.