| Metric | Movement | Analysis |
|---|---|---|
| Gold Loan AUM (Standalone) | ₹1,24,918 Cr (↑10% QoQ, ↑45% YoY) | Strong growth driven by gold price appreciation and expansion in customer base. |
| Gold Tonnage | 209 tonnes (↑0.5% QoQ, ↑5% YoY) | Steady increase in gold holdings, reflecting continued trust and business expansion. |
| Standalone PAT | ₹4,391 Cr (↑15% QoQ, ↑88% YoY) | Robust profitability growth due to higher disbursements and improved operational efficiency. |
| Net Yield | ~19.99% (↑ from 18.65% YoY) | Improved yield on average loan assets, supported by favorable interest income growth. |
| Cost of Borrowing | ~7.33% (↑ from 7.11% YoY) | Slight increase due to market conditions, but remains well-managed. |
| ROA | 7.44% (↑ from 5.74% YoY) | Improved return on assets, reflecting efficient asset utilization and profitability. |
| ROE | ~30.61% (↑ from 19.99% YoY) | Significant improvement in return on equity, driven by high PAT and optimized capital. |
| LTV (Implied Safety Margin) | ~43% (↑ from 37% YoY) | Improved loan-to-value safety margin due to rising gold prices and prudent lending. |
| Per Branch AUM (Gold) | ₹25.15 Cr (↑ from ₹17.75 Cr YoY) | Higher gold prices and operational efficiency driving per-branch productivity. |
| Average Ticket Size | Not explicitly given, but implied growth from gold price and AUM per branch. | Likely increased due to gold price appreciation and higher loan disbursements. |
| CRAR | 20.89% (↓ from 26.96% YoY) | Adequate capital adequacy, though lower due to business growth and leverage. |
| Leverage (Capital Gearing) | 3.27x (↑ from 2.66x YoY) | Increased leverage to support business expansion, but within manageable limits. |
| Stage III Loans (%) | 2.25% (↓ from 4.30% YoY) | Improved asset quality with reduction in NPA levels. |
| ECL Provision Coverage | 1.21% (↓ from 1.48% YoY) | Lower provision coverage reflects better asset quality and risk management. |
Muthoot Finance has delivered strong growth in gold loan AUM, profitability, and operational metrics in Q2 FY26. The company is benefiting from rising gold prices, increased disbursements, and improved asset quality. While leverage has increased to support growth, the capital adequacy remains healthy. The focus remains on gold loans as the core driver, with subsidiaries contributing marginally to consolidated profits. The digital initiatives and branch expansion continue to support customer acquisition and operational efficiency.