Elevated impairment expense
FY26 impairment was ₹76 crore vs ₹18.5 crore in FY25, driven by legacy portfolio write-offs and corporate NPA. Management expects improvement but trend is uncertain.
MUTHOOTCAPITAL / bear-case history
Track the concerns that keep returning.
Muthoot Capital Services · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
New verticals (CV, used car) not yet break-even
CEO acknowledged that CV and used car verticals are still loss-making, supported by two-wheeler profits. Delay in break-even could pressure overall profitability.
Macroeconomic headwinds (tariffs, crude, El Niño)
Analyst raised concerns about global uncertainties impacting consumption and credit quality. Management downplayed but admitted calibrated growth approach.
Equity dilution risk from CCPS issuance
Planned ₹400 crore CCPS raise could dilute existing shareholders. Management stated promoters will maintain >51% but retail dilution is possible.