Muthoot Cap.Serv Q2 FY27 Results (NSE: MUTHOOTCAP)
Signal: Earnings grew
The read
The turnaround remains intact with Q2FY27 PAT of ₹440.25 lakh, up 55.7% YoY after a ₹282.72 lakh profit a year earlier, but the sequential decline from ₹812.21 lakh and the 29.4% YoY rise in impairment to ₹2,144.15 lakh show that credit costs remain the key swing factor; the ₹1,782.80 lakh derecognition gain also makes reported revenue and profit quality less clean.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹178.92 Cr | +15.2% | +11.4% |
| Net profit | ₹4.4 Cr | +55.7% | |
| EPS | ₹2.68 | +55.8% | |
| EBIT margin | 0 |
P&L walk
Standalone Q2FY27 total income rose 15.2% YoY to ₹17,892.19 lakh and PAT rose 55.7% to ₹440.25 lakh, but the quarter included a ₹1,782.80 lakh derecognition gain and impairment increased 29.4% YoY to ₹2,144.15 lakh.
Key positives
- PAT was ₹440.25 lakh in Q2FY27, up 55.7% YoY, extending the move from a ₹184.27 lakh H1FY26 loss to a ₹1,252.46 lakh H1FY27 profit.
- GNPA improved to 4.81% from 6.46% YoY and NNPA to 2.85% from 3.07% YoY, while advances increased 1.3% YoY to ₹3,32,562.57 lakh.
- Operating cash flow was positive at ₹7,621.93 lakh in H1FY27 versus negative ₹37,443.79 lakh in H1FY26.
- The ₹2,517 lakh management overlay and an additional ₹250 lakh ECL buffer provide incremental loss-absorption capacity.
Key concerns
- Impairment on financial instruments increased 29.4% YoY to ₹2,144.15 lakh and 169.7% QoQ, despite the YoY improvement in GNPA and NNPA.
- Q2 PAT fell 45.8% QoQ from ₹812.21 lakh, indicating that the Q1 recovery has not yet translated into a steadily rising quarterly profit run-rate.
- Debt-equity increased to 4.91x from 4.56x YoY, while finance costs remained high at ₹8,092.63 lakh, equal to 45.2% of total income.
- GNPA increased sequentially from 3.94% to 4.81% and NNPA from 2.36% to 2.85%, interrupting the recent asset-quality improvement trend.
Research and educational content only. Not investment advice.