Muthoot Finance earnings calls.

Muthoot Finance delivered strong AUM growth of 43Current reported value: 43. No comparable prior figure is available in the source record.% YoY to ₹1.91 lakh crore in Q1 FY27, driven by robust gold loan demand and 86 new branch additions. Consolidated PAT surged 43% to ₹2,825Current reported value: 2,825. No comparable prior figure is available in the source record. crore, though the 300bps QoQ yield decline to 17.93% raised analyst concerns. Management attributed the yield compression to regulatory-driven product restructuring in Q4, one-time recoveries that won't recur, and deliberate repricing to remain competitive as NBFC intensity increases. They expect steady-state yields to stabilize at 18-18.5%. Return metrics remain best-in-class with ROA of 6.09% and ROE of 26.6%. Subsidiaries showed mixed performance—Muthoot Money delivered exceptional 366%Current 366%. Reported change: +366% YoY. PAT growth, while Belstar Microfinance returned to profitability. Capital adequacy at 20.3% remains comfortable. The company maintained a 15% AUM growth guidance for FY27, with management emphasizing loan growth as the primary metric. Key risks include further yield compression from intensifying competition and regulatory changes to gold loan recognition under the new 75-85% LTV framework.