Muthoot Finance Q1 FY27 Results (NSE: MUTHOOTFIN)
Signal: Steady quarter
The read
Standalone performance strong YoY with revenue +33% and PAT +25%, but sequential decline highlights Q4 seasonality in gold loans; asset quality improved (GNPA 2.28% vs 2.58% YoY) but leverage increased (D/E 3.83) and provision coverage thinned (13.01% vs 18.52% YoY), warranting monitoring of credit costs. Consolidated results show continued group momentum with subsidiaries contributing ₹2,744 mn PAT (pre-consolidation adjustments).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,694.82 Cr | N/A | N/A |
| Net profit | ₹2,550.97 Cr | N/A | |
| EPS | ₹63.53 | N/A | |
| EBIT margin | 0% |
P&L walk
Consolidated results show strong topline (Total Income ₹86,948 mn) and PAT of ₹25,510 mn, but no comparatives in filing; key drivers assumed similar to standalone (loan growth, stable gold prices).
Key positives
- Standalone PAT grew +24.6% YoY to ₹25,505 mn, driven by revenue expansion.
- GNPA ratio improved to 2.28% from 2.58% YoY, indicating better asset quality.
- Capital Adequacy Ratio at 20.30% remains well above regulatory minimum.
- Loan book (standalone AUM) grew 6.75% QoQ to ₹1,725,126 mn.
Key concerns
- Debt-Equity ratio increased to 3.83 from 3.51 YoY, reflecting higher leverage.
- Provision Coverage Ratio declined sharply to 13.01% from 18.52% YoY, implying lower buffer for NPA.
- Net profit margin (standalone) fell to 33.55% from 37.66% sequentially due to higher finance costs and other expenses.
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