Muthoot Finance's Q1 FY 2025-26 Quarterly Results

Result Summary

• Muthoot Finance Ltd reported a 55.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 44.4%.
• Its expenses for the quarter were up by 46.7% QoQ and 41.6% YoY.
• The net profit increased 67.0% QoQ and increased 65.1% YoY.
• The earnings per share (EPS) of Muthoot Finance Ltd stood at 50.2 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Muthoot Finance Ltd is a prominent financial services company in India, primarily engaged in the business of providing personal and business loans secured by gold jewelry. The company operates within the Non-Banking Financial Company (NBFC) sector, focusing on serving the financial needs of individuals and small businesses. Muthoot Finance has established a significant presence in the Indian market through its extensive network of branches across the country. As of the latest update, there are no specific recent developments provided in the data about the company's strategic initiatives or expansion plans.

Revenue

In Q1FY26, Muthoot Finance Ltd reported a total income of ₹6485.02 crores, marking a substantial increase of 44.4% year-over-year (YoY) compared to ₹4492.47 crores in Q1FY25. On a quarter-over-quarter (QoQ) basis, total income rose by 55.2%, from ₹4179.42 crores in Q4FY25. This growth in revenue can be attributed to the company's effective business operations and possibly increased demand for its financial products and services during the period. The significant rise in total income highlights the company's strong operational performance in the current financial quarter.

Profitability

The company's profitability metrics have shown impressive growth in Q1FY26. Profit Before Tax (PBT) increased to ₹2654.03 crores, representing a YoY growth of 61.3% and an impressive QoQ increase of 67.4% from Q4FY25. After accounting for taxes, the Profit After Tax (PAT) stood at ₹1974.25 crores, which is a 65.1% rise YoY and a 67.0% increase QoQ. The Earnings Per Share (EPS) also saw a significant increase, reaching ₹50.20, with a YoY growth of 73.1% and a QoQ rise of 76.8%. These figures underscore the company's ability to enhance its profitability amidst changing market conditions.

Operating Metrics

Muthoot Finance Ltd's operating expenses for Q1FY26 were ₹3500.38 crores, which reflects a 41.6% increase YoY from ₹2472.13 crores in Q1FY25 and a QoQ rise of 46.7% from ₹2386.01 crores in Q4FY25. The tax expense for the quarter was ₹679.78 crores, showing a YoY increase of 51.0% and a QoQ increase of 68.7%. These figures suggest that while the company has managed to grow its income significantly, the operating expenses and tax liabilities have also increased, which is typical as a company's scale of operations expands. The financial data provided does not include specific details on financial ratios such as the P/E ratio, debt-to-equity ratio, or current ratio, hence these calculations are not available for this analysis.