Mumbai: Muthoot Capital's Q3 performance underlines a robust rebound.The NBFC posted a consolidated net profit of Rupees 8.43 crore for the third quarter of FY26, recovering from Rupees 3.31 crore in Q2
and a Rupees 4.41 crore loss in Q1. Revenue from operations increased to Rupees 155.08 crore, from Rupees 153.54 crore in Q2 and Rupees 145.32 crore in Q1, with total income for Q3 reaching Rupees 160.94 crore. Year-on-year, profit fell 33.6 percent from Rupees 12.69 crore, but revenue surged 23.4 percent against Rupees 125.68 crore in Q3 FY25.
Sequential growth builds despite disbursement volatility. Quarter-on-quarter growth was driven by a 17 percent increase in disbursements to Rupees 625.86 crore, though still 26 percent below the Rupees 845.70 crore recorded in Q3 FY25. Operating expenses rose to Rupees 58.25 crore in Q3 from Rupees 53.62 crore in Q2, while provisioning dropped to Rupees 11.21 crore from Rupees 16.70 crore, aiding profit expansion. Gross NPA marginally declined to 6.45 percent, while Net NPA rose to 3.64 percent.
Management focuses on profitability amid stable asset growth. AUM rose 3.5 percent QoQ to Rupees 3,398.95 crore, continuing a steady trajectory from Rupees 3,238.74 crore in Q1. The company’s focus on two-wheeler and used car loans helped maintain growth, while EPS for the quarter stood at Rupees 4.65. The cost of borrowing stood at 9.68 percent, with capital adequacy at a healthy 22.49 percent. No management quote was included in the investor presentation.
Nine-month performance shows a turnaround underway. For 9M FY26, revenue from operations stood at Rupees 453.94 crore, a 35.8 percent jump from Rupees 334.34 crore in 9M FY25. Net profit reached Rupees 7.33 crore, compared to Rupees 40.37 crore in the same period last year, reflecting the impact of earlier provisions and asset quality realignment. AUM grew 20 percent YoY to Rupees 3,398.95 crore, supporting long-term prospects despite near-term NPA pressures.
Disclaimer: This report is based on publicly disclosed financial results by Muthoot Capital. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
