Muthoot Finance has updated its FY26 gold loan growth outlook following strong performance in Q2FY26, driven by rising customer demand and expanding loan volumes.
Muthoot Finance now expects gold loan AUM growth of 30 to 35% in FY26, compared to its earlier estimate of 21%. The company attributes this revision to sustained demand in the gold loan segment and favourable regulatory changes set to ease compliance for loans below ₹2,50,000 from next year.
The management noted that simplified norms would support the expansion of small ticket loans, helping strengthen the business momentum in the second half of FY26.
In Q2FY26, Muthoot Finance’s consolidated loan AUM increased 42% YoY to ₹1.47 trillion. Gold loan AUM rose 45% from the year ago quarter to ₹1.24 trillion, highlighting continued customer preference for secured lending options such as gold loans.
Read More: Helios Mid Cap Fund Raises Holdings in Paytm, Swiggy, and Other Stocks in October!
The company highlighted the broader expansion opportunity in the gold loan market. Scheduled banks currently manage gold loan portfolios totalling ₹13 trillion, whereas NBFCs hold around ₹3 trillion. The firm views this gap as indicative of ample room for sector wide growth.
Muthoot Finance’s microfinance subsidiary has seen its loan book reduce from ₹10,500 crore to ₹7,000 crore due to consolidation efforts. The company expects the portfolio to remain stable for the upcoming 2 quarters, with growth anticipated to gradually resume in Q1 and Q2 of FY27.
The company indicated that despite weather led disruptions and broader industry challenges, collections have stabilised, and the microfinance sector is progressing towards recovery.
As of November 21, 2025, at 3:30 PM, Muthoot Finance share price closed at ₹3,636.00 down by 1.66% from the previous closing price.
Muthoot Finance’s upward revision of its FY26 gold loan growth outlook reflects strong AUM expansion and supportive demand trends. With regulatory changes set to boost small ticket lending and stabilisation in its microfinance operations, the company anticipates steady performance in the coming quarters.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Nov 22, 2025, 11:57 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
