Gold-loan major Muthoot Finance reported a standalone profit of ₹ 23,450 million (≈ US$ 266.8 million) in Q2 FY26 — up around 87.5 % from the previous year. The sharp rise was driven by record-high gold prices which boosted collateral values and in turn allowed borrowers to access larger loans. Asset quality also improved, with gross stage-3 (over-90-day overdue) loans dropping to 2.25 % from 2.58 %.
With its loan book jumping 47 % year-on-year to ₹ 1.32 trillion, Muthoot raised its gold-loan growth guidance for FY26 to between 30–35 %, signalling robust demand in the secured-credit segment even as unsecured lending remains under pressure. This also underscores the value of gold as collateral in India’s borrowing ecosystem.
Why it matters: For investors and borrowers alike, this trend indicates strength in NBFCs that specialise in secured lending — and highlights how macro-factors (gold price, regulation) shape credit flows in India.
