Muthoot Finance Q2 FY27 results: net profit up 35.9% to ₹3,278 crore, revenue up 37.3%

How did Muthoot Finance perform in Q2 FY27?

Muthoot Finance reported consolidated revenue of ₹9,998 crore for Q2 FY27, up ₹2,715 crore or 37.3% from Q2 FY26. Total income rose 36.5% to ₹10,010.78 crore, while profit before tax increased 35.6% to ₹4,399 crore and net profit rose 35.9% to ₹3,278 crore. Basic EPS was ₹80.87, compared with ₹60.29 a year earlier.

Against Q1 FY27, consolidated revenue rose ₹1,326 crore or 15.3% to ₹9,998 crore. Net profit increased ₹453.16 crore or 16.0% to ₹3,278 crore, profit before tax rose 15.9% to ₹4,399 crore and basic EPS advanced 16.0% to ₹80.87. The net profit margin was 32.8%, compared with 32.6% in the previous quarter and 33.1% in Q2 FY26.

On a standalone basis, Q2 FY27 revenue was ₹8,834.35 crore and profit after tax was ₹3,186.25 crore. EBITDA and EBITDA margin were not reported for the quarter, so no comparison can be made on those measures.

What changed in Muthoot Finance's costs and profit?

Total expenses rose ₹1,523 crore or 37.3% from Q2 FY26 to ₹5,612 crore, broadly matching the increase in revenue. Finance costs were ₹3,717 crore, up ₹1,145 crore or 44.5%, while employee cost rose ₹33.94 crore or 4.7% to ₹760.86 crore. Depreciation increased ₹0.61 crore or 1.6% to ₹38.22 crore and other expenses rose ₹45.48 crore or 9.9% to ₹502.74 crore.

Other income fell ₹36.79 crore or 73.9% from ₹49.80 crore in Q2 FY26 to ₹13.01 crore. There was no exceptional item in the quarter. Tax expense increased ₹288.50 crore or 34.7% to ₹1,121 crore, while profit before tax rose ₹1,155 crore or 35.6% and net profit increased ₹866.34 crore or 35.9%. The filings did not state a reason for the movement in costs or other income.

Sequentially, total expenses rose ₹714.05 crore or 14.6% from Q1 FY27. Finance costs increased ₹258.20 crore or 7.5%, employee cost rose ₹22.52 crore or 3.1%, and depreciation rose ₹6.82 crore or 21.7%; other expenses fell ₹45.49 crore or 8.3%. Other income declined ₹10.20 crore or 43.9%, and tax rose ₹148.75 crore or 15.3%.

How did the first half of FY27 go?

For H1 FY27, Muthoot Finance reported consolidated revenue of ₹18,669.37 crore, up ₹4,936.45 crore or 35.9% from ₹13,732.92 crore in H1 FY26. Total income rose 35.4% to ₹18,705.6 crore, while profit before tax increased 39.0% to ₹8,196.17 crore. Net profit rose ₹1,716.93 crore or 39.1% to ₹6,102.84 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹230,050.95 crore, compared with ₹195,753.99 crore at 31 March 2026. Total equity rose to ₹44,627.61 crore from ₹39,774.45 crore, while cash and cash equivalents increased to ₹14,564.92 crore from ₹12,614 crore. The available balance-sheet data did not include borrowings.

H1 FY27 operating cash flow was an outflow of ₹24,541.69 crore, compared with an outflow of ₹20,100.64 crore in H1 FY26. Investing cash flow was an outflow of ₹475.4 crore against ₹2,505.49 crore a year earlier, while financing cash flow was an inflow of ₹26,968.96 crore compared with ₹22,346.97 crore. Capital expenditure was ₹125.4 crore, up from ₹53.27 crore.

How has Muthoot Finance done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters and profit after tax also increased year on year in each of the last eight quarters. Revenue reached a quarterly high of ₹9,997.77 crore in Q2 FY27, above ₹8,671.6 crore in Q1 FY27, after falling from ₹9,288.71 crore in Q4 FY26.

Profit after tax reached a quarterly high of ₹3,278 crore in Q2 FY27, compared with ₹2,824.84 crore in Q1 FY27 and ₹3,397.48 crore in Q4 FY26. The trend figures did not provide EBITDA margins, so no quarterly margin peak or trough can be identified.

What else did the company announce?

The board approved the limited reviewed standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also approved the related limited review reports, Regulation 52 and Regulation 54 disclosures, a security-cover disclosure and the publication of the financial results in one English and one vernacular newspaper.

The company filed its investor presentation and a proposed press release with the results. The same-day filings did not announce a dividend, a fund raise or an appointment. A separate filing said the scheme of amalgamation between Muthoot Finance, Muthoot Money and their respective shareholders and creditors was approved by the board on 31 August 2026.

What did the auditors point out?

The joint statutory auditors conducted a limited review under SRE 2410 and said nothing had come to their attention that caused them to believe the standalone statement had not been prepared in accordance with Ind AS 34, the Companies Act, RBI guidelines and applicable Listing Regulations. They noted that a review provides less assurance than an audit and that they had not performed an audit or expressed an audit opinion.

The report included an emphasis of matter drawing attention to the scheme of amalgamation approved by the board on 31 August 2026. The scheme was subject to sanction by the National Company Law Tribunal, Kochi Bench, and necessary approvals from the RBI, shareholders, creditors and other regulatory authorities. The auditors said their conclusion was not modified in respect of this matter.

What did Muthoot Finance's management say?

Management said H1 FY27 consolidated loan AUM rose 42% year on year to ₹209,317 Cr, while consolidated profit after tax rose 39% to ₹6,103 Cr. It identified gold loans as the primary growth engine and said the consolidated branch network reached 7,904; average standalone gold loan AUM per branch was ₹34 Cr, up 36% sequentially.

Management said it was investing in advanced analytics, data-led decision-making, risk governance, modern talent development and digital collections. It also said Muthoot Money was expanding selectively into underserved geographies without overlapping the group’s network, while Muthoot Homefin was scaling affordable housing finance through a hub-and-spoke model with centralised processing in Mumbai. No quantified forward guidance was provided.

Management identified asset-quality and credit-risk pressure. It said standalone Stage II loan assets increased to ₹234,667 Mn from ₹5,340 Mn at September 2025, while Stage III assets rose to ₹72,679 Mn, or 3.87% of loans, from ₹29,774 Mn and 2.25%. Impairment of financial instruments increased to ₹5,660 Mn in H1 FY27 from ₹1,291 Mn in H1 FY26.

The lender-side margin of safety on gold-backed loans declined to 46% at September 2026 from 53% at September 2025. Management also said Muthoot Money’s Stage III loan assets increased to 1.14% of gross loan assets from 0.80% in H1 FY26, while Muthoot Homefin’s Stage III loan assets rose to 2.50% from 1.69%.

How did Muthoot Finance shares react?

After the filing appeared after market, Muthoot Finance’s price rose 5.0% within five minutes, 5.6% within 15 minutes and 4.1% within 30 minutes. From the previous close of ₹2,408.6, the stock closed the reaction day up 4.4%. By the next day’s close, it was up 4.8% from that pre-results close.

On the reaction day, the median move for other NBFC stocks was 0.6%, leaving Muthoot Finance 3.8 percentage points ahead of the industry median. The Nifty 100 moved 1.7%. Earlier results-day moves were mixed: the stock fell 7.6% on 1 August 2026, 6.1% on 14 May 2026 and 11.9% on 12 February 2026, after rising 9.7% on 13 November 2025 and 9.5% on 13 August 2025.

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

Among 76 NBFC peers whose revenue growth was compared, the median revenue growth was 21.5%. Fifty-two peers grew more slowly than Muthoot Finance, while 24 grew faster than the company’s 37.3% consolidated revenue growth. Of 84 peers whose profit was compared, 55 reported higher profit.