Muthoot Finance Gold Loan Analysis
Metric Movement Analysis
Gold Loan AUM Rs 1,39,658 Cr (Up 50% YoY, Up 12% QoQ) Strong growth led by gold price appreciation and continued high disbursement momentum.
Gold Tonnage 205 tonnes (Up ~1.5% YoY) Stable tonnage; value growth largely driven by higher gold prices.
Standalone PAT Rs 7,048 Cr (9M FY26, Up 91% YoY) Sharp profitability expansion driven by AUM growth and lower credit costs.
Net Yield ~19.94% (vs 18.54% YoY) Improved yield reflecting pricing strength and portfolio mix.
Cost of Borrowing ~7.42% (vs 6.98% YoY) Moderate increase due to funding cost pressure, spreads remain strong.
ROA ~7.39% (vs 5.66% YoY) High asset productivity; gold loan model generating superior returns.
ROE ~29.86% (vs 19.20% YoY) Strong capital efficiency supported by profit growth and leverage.
LTV (Implied Safety Margin) ~44% margin of safety (vs 34% YoY) Higher gold prices expanded collateral buffer, reducing credit risk.
Per Branch AUM (Gold) Rs 28.10 Cr (vs Rs 19.15 Cr YoY) Significant improvement in branch productivity and operating leverage.
Average Ticket Size Not disclosed; implied increase Likely higher due to rising gold prices and larger loan renewals/top-ups.
CRAR 20.27% (vs 25.11% YoY) Comfortable above regulatory norms despite rapid growth.
Leverage (Capital Gearing) 3.40x (vs 2.75x YoY) Increased to fund expansion; manageable but rising.
Stage III Loans (%) 1.58% (vs 4.22% YoY) Major asset quality improvement; gold-backed lending resilient.
ECL Provision Coverage 1.10% (vs 1.56% YoY) Lower provisioning ratio reflecting improved portfolio quality.

Muthoot Finance delivered strong AUM and profit growth in Q3 FY26, supported by higher gold prices, improving asset quality, and strong operating leverage. Returns remain industry-leading, with comfortable capital levels despite rising leverage.