Muthoot Finance Limited, the country’s leading gold loan NBFC, announced on Thursday (August 28) that it has infused ₹499.99 crore into its wholly-owned subsidiary, Muthoot Money Limited, through the allotment of 3,25,139 equity shares. The board of Muthoot Money approved and completed the allotment on August 28.
Strengthening Subsidiary’s Capital Base
The fresh equity infusion aims to enhance Muthoot Money’s capital adequacy ratio, support business expansion, meet general corporate needs, and repay existing borrowings. Since Muthoot Finance already holds 100% ownership, the transaction does not impact the subsidiary’s shareholding structure. The consideration was made entirely in cash.
Strong Q1FY26 Performance
Alongside the capital infusion, Muthoot Finance reported its highest-ever quarterly profit for the first quarter ended June 30, 2025:
- Net Profit: ₹2,046 crore, up 89.6% YoY from ₹1,079 crore.
- Net Interest Income (NII): ₹3,473 crore, up 50.6% YoY, beating analyst estimates of ₹3,199 crore.
- Net Interest Margin (NIM): Improved to 12.15%, from 11.51% last year.
- Asset Quality: Stage III assets to gross loan assets ratio improved to 2.58%, versus 3.41% in the March 2025 quarter.
- Loan Assets Under Management (AUM): Consolidated AUM hit an all-time high of ₹1.33 lakh crore, up 37% YoY. On a standalone basis, AUM grew 42% YoY to ₹1.2 lakh crore.
Outlook
With the latest equity infusion into Muthoot Money and record-breaking quarterly results, Muthoot Finance continues to strengthen its balance sheet and expand its footprint in the financial services sector.
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