Muthoot Finance Infused ₹200 Crore into Muthoot Homefin to Aid Business Growth

Muthoot Finance Limited, India’s largest standalone gold loan NBFC, announced on Wednesday, September 10, that it has completed an equity infusion of ₹200 crore into its wholly-owned subsidiary, Muthoot Homefin (India) Limited.

As part of the capital raise, Muthoot Homefin has issued and allotted 2.67 crore equity shares to its parent company at a premium of ₹9 per share. This strategic move aims to strengthen the subsidiary’s capital base and enhance its capital adequacy ratio.

Use of Funds by Muthoot Homefin

The proceeds from this infusion will be utilised to support business growth, meet general corporate requirements, and facilitate the repayment of existing borrowings. Despite the fresh capital injection, Muthoot Homefin continues to remain a 100% subsidiary of Muthoot Finance, with no change in the shareholding structure.

Muthoot Finance Q1FY26 Earnings Highlights

Muthoot Finance Limited has reported a robust 37% year-on-year (YoY) growth in its Consolidated Loan Assets Under Management (AUM), reaching ₹1,33,938 crore in Q1 FY26, compared to ₹98,048 crore in the same period last year.

On a sequential basis, the consolidated AUM grew by 10%, reflecting an increase of ₹11,757 crore during the quarter.

Consolidated Profit After Tax (PAT) also witnessed a significant surge, rising 65% YoY to ₹1,974 crore in Q1 FY26, up from ₹1,196 crore in the corresponding quarter of the previous fiscal year.

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Muthoot Homefin Q1FY26 Highlights

Muthoot Homefin (India) Limited delivered a strong performance in Q1 FY26, reporting a 41% year-on-year growth in its Loan Assets Under Management (AUM), which stood at ₹3,096 crore compared to ₹2,199 crore in Q1 FY25.

Interest income for the quarter also saw a robust 49% YoY increase, rising to ₹86 crore in Q1 FY26 from ₹58 crore in the corresponding quarter of the previous fiscal year, reflecting healthy growth in the company’s lending portfolio and improved asset utilisation.

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