Muthoot Capital Services Limited — Investor Meet, 22-10-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Muthoot Capital Services reported Q2 FY '26 PAT of INR 3.31 Cr, reversing Q1 losses. Disbursements dipped to INR 521 Cr due to macro slowdown and a strategic reduction in lower-yielding co-lending. AUM grew 40% YoY to INR 3,284 Cr. GNPA (including interest accrual) stood at 6.46%. Slippages decreased, and NPA recoveries improved significantly. Yields increased to 20.32%, with a further 100 bps expected in Q3 from risk-based pricing and new products. Management projects Q3 disbursements of INR 800-850 Cr, aiming for ~INR 4,000 Cr AUM and 2% ROA for FY26. The long-term vision targets INR 10,000 Cr AUM and 4% ROA by 2028, driven by product diversification and digital investments. CRISIL also upgraded their outlook to Positive. Management is confident in the growth trajectory and future profitability.