Muthoot Finance raises growth prospects for FY26 after reporting a rise in earnings

Gold loan company Muthoot Finance has again revised upward its annual growth forecast for FY26 to 44-45%, from an earlier revised expectation of 30-35%, managing director George Alexander Muthoot told ET. He said the rise in demand along with regulatory comfort for the gold loan sector has paved the way for greater business traction.The company on Thursday reported a near doubling of third-quarter standalone net profit at Rs 2,656 crore compared to Rs 1,363 crore a year ago, supported by 47% lower provisions at Rs 111 crore.

Total income rose 64% year-on-year to Rs 7,263 crore. Assets under management stood at Rs 1.48 lakh crore, showing a growth of 51% year-on-year. Gold loans stood at Rs 1.40 lakh crore.

The company said it would open 150 to 200 locations next year, about 50 more than planned for this year.

“More than the numbers, the Reserve Bank of India’s decision to remove the need for prior approval for branch expansion for lenders with more than 1,000 branches is a confidence booster. It is a message that the regulator is keen to promote gold lending,” the MD said.

On a consolidated basis, net profit stood at Rs 2,824 crore for the third quarter against Rs 1,392 crore. Belstar Microfinance, its 62% subsidiary, posted a net profit of Rs 51 crore, against Rs 2.4 crore a year ago. Loss was incurred in the first two quarters of the budget year.