Muthoot Capital Services Q2 FY27 results: net profit up 55.5% to ₹4.40 crore, revenue up 14.2%

How did Muthoot Capital Services perform in Q2 FY27?

Muthoot Capital Services reported standalone revenue of ₹175.39 crore in Q2 FY27, against ₹153.54 crore in Q2 FY26 and ₹155.53 crore in Q1 FY27. Total income was ₹178.92 crore, compared with ₹155.42 crore a year earlier and ₹160.64 crore in the previous quarter. EBITDA and EBITDA margin were not reported in the available figures.

Profit before tax was ₹5.87 crore in Q2 FY27, up from ₹3.72 crore in Q2 FY26 but down from ₹10.85 crore in Q1 FY27. After tax of ₹1.47 crore, Muthoot Capital Services reported a net profit of ₹4.40 crore, against ₹2.83 crore a year earlier and ₹8.12 crore in the previous quarter. Basic EPS was ₹2.68, compared with ₹1.72 and ₹4.94, respectively.

The result was on a standalone basis. The company filed unaudited results for the quarter and half year ended 30 September 2026, which the board approved on 5 November 2026 after review by the audit committee and the statutory auditors.

What changed in Muthoot Capital Services' costs and profit?

Total expenses rose to ₹173.05 crore in Q2 FY27 from ₹151.70 crore in Q2 FY26 and ₹149.78 crore in Q1 FY27. Employee benefits expense increased to ₹32.94 crore from ₹29.09 crore year on year and ₹31.52 crore in the previous quarter, while other expenses rose to ₹36.41 crore from ₹23.30 crore and ₹0 crore, respectively.

Finance costs fell to ₹80.93 crore from ₹81.39 crore in Q2 FY26, but rose from ₹77.87 crore in Q1 FY27. Depreciation, amortisation and impairment was ₹1.23 crore, compared with ₹1.21 crore a year earlier and ₹1.09 crore in the previous quarter. Other income was ₹3.53 crore, up from ₹1.87 crore year on year and down from ₹5.11 crore sequentially.

There was no exceptional item in Q2 FY27. Tax expense was ₹1.47 crore, against ₹0.89 crore in Q2 FY26 and ₹2.73 crore in Q1 FY27. The filing also reported impairment on financial instruments of ₹2,144.15 lakh for the quarter, but the available comparison does not provide a separate quarter-on-quarter or year-on-year difference for that line.

How did the first half of FY27 go?

In the first half of FY27, standalone revenue was ₹330.92 crore, up ₹32.06 crore or 10.7% from ₹298.86 crore in H1 FY26. Total income rose to ₹339.56 crore from ₹302.91 crore, an increase of ₹36.65 crore or 12.1%.

Profit before tax was ₹16.73 crore in H1 FY27, compared with a net loss of ₹2.45 crore in H1 FY26. Profit after tax was ₹12.52 crore against a net loss of ₹1.84 crore, while EPS was ₹7.61 compared with a loss of ₹1.12.

What do the balance sheet and cash flow show?

Total assets were ₹4,154.18 crore at 30 September 2026, compared with ₹4,055.61 crore at 31 March 2026. Total equity increased to ₹682.75 crore from ₹670.42 crore, while cash and cash equivalents rose to ₹394.72 crore from ₹364.86 crore. A borrowings figure was not provided in the available balance-sheet data.

Operating cash flow for H1 FY27 was ₹76.22 crore, compared with an outflow of ₹245.74 crore in H1 FY26. Investing cash flow was ₹82.51 crore against an outflow of ₹6.4 crore, and financing cash flow was ₹36.14 crore compared with ₹135.51 crore. Capital expenditure was ₹0 crore in H1 FY27 and ₹0.25 crore in H1 FY26.

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

Revenue rose year on year in each of the last eight quarters. It increased from ₹125.68 crore in Q3 FY25 to ₹153.54 crore in Q2 FY26, dipped to ₹155.53 crore in Q1 FY27 from ₹166.61 crore in Q4 FY26, and reached ₹175.39 crore in Q2 FY27. The latest quarter was the highest revenue figure in the series.

Profit after tax moved from ₹12.56 crore in Q3 FY25 to a net loss of ₹4.67 crore in Q1 FY26, then recovered to ₹8.12 crore in Q1 FY27 before falling to ₹4.40 crore in Q2 FY27. The highest profit after tax in the series was ₹12.56 crore and the lowest was a net loss of ₹4.67 crore. EBITDA margin data was not reported for the quarterly series.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half year ended 30 September 2026 on 5 November 2026. The filing included the limited review report, the unaudited results, a certificate of security cover, and statements on the utilisation of issue proceeds and any deviation or variation in their use.

The same-day investor communication focused on Q2 FY27 loan growth and asset quality. The available same-day filings did not announce a dividend, a fund raise or any appointments, and the board did not state that the results were consolidated; the reported figures were standalone.

What did Muthoot Capital Services' management say?

Management said the Q2 FY27 portfolio was led by retail growth, with the MCSL retail book at ₹3,086 Cr and total portfolio at ₹3,530 Cr, including ₹203.93 Cr of derecognised, off-book DA. Management also said Q2 disbursement was ₹649 Cr, while co-lending disbursement was ₹0 Cr and the co-lending portfolio declined to ₹382 Cr.

Management said the Q3 FY27 schedule showed ₹1,003.40 Cr of disbursements, ₹1,115.72 Cr of new borrowings and ₹301.71 Cr of closing liquidity. Management also highlighted two-wheeler concentration at 69.68% of the portfolio, higher own-book disbursements, and growth in CV, used-car and construction-equipment loans.

Management said funding conditions were not conducive for raising funds. It reported average funding costs ranging from 9.75% for PTC to 11.48% for sub debt, with total borrowings at 81% of the balance sheet. The presentation also stated that GNPA rose sequentially to 4.81% from 3.94% in June, while improving year on year.

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

Among the 93 Non Banking Financial Company peers compared for the quarter, the median revenue growth was 24.1%. Thirty-five peers grew more slowly than Muthoot Capital Services and 58 grew faster. Seventy-one peers reported higher profit, while 106 peers had profit compared.