Muthoot Finance Limited, the largest pureplay gold loan non-banking financial company (NBFC), announced on Wednesday (September 10) that it has completed an additional equity infusion of ₹200 crore in its wholly-owned subsidiary, Muthoot Homefin (India) Limited. The move aims to bolster the subsidiary’s capital base and enhance its capital adequacy ratio.
The company allotted 2.67 crore equity shares to Muthoot Finance in cash at a premium of ₹9 per share. The proceeds will be used for funding business operations, general corporate purposes, and repayment of existing loans.
The company clarified that the allotment does not alter the shareholding structure, with Muthoot Homefin continuing as a wholly-owned subsidiary of Muthoot Finance.
Muthoot Finance delivered record-breaking results in the first quarter of FY26. Net profit surged 89.6% year-on-year to ₹2,046 crore for the quarter ended June 30, 2025, the highest quarterly profit in its history. In comparison, the company reported ₹1,079 crore in the same quarter last year.
Net interest income (NII) rose 50.6% year-on-year to ₹3,473 crore, up from ₹2,305 crore in the previous fiscal’s corresponding quarter. The company attributed this strong performance to healthy demand in the gold loan segment.
Muthoot Homefin, headquartered in Kerala, operates in the housing finance sector. The company has been consistently scaling up operations, reporting a turnover of ₹138.84 crore in FY23, ₹198.88 crore in FY24, and ₹326.33 crore in FY25.
On September 10, 2025, Muthoot Finance Limited share price opened at ₹2,950.00, compared to the previous close of ₹2,942.40. During the session, the stock touched a high of ₹2,954.70 and a low of ₹2,876.10 before closing at ₹2,898.10, down by 1.64% at the end of the trading day.
The 52-week high for the stock was recorded on September 10, 2025, at ₹2,954.70, while the 52-week low stood at ₹1,756.05 on November 14, 2024. Muthoot Finance Limited is currently trading at a P/E ratio of 19.27.
The equity infusion highlights Muthoot Finance’s commitment to strengthening its housing finance subsidiary and diversifying its presence beyond gold loans. With record profits in Q1 and continued growth in Muthoot Homefin’s operations, the group is reinforcing its position in India’s financial services sector.
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Published on: Sep 10, 2025, 7:58 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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