Financial Performance Overview
Muthoot Capital Services Limited reported standalone financial results for FY26 with total income of ₹632.52 crores and profit after tax of ₹11.17 crores, a significant decrease from ₹45.74 crores in FY25. Basic EPS stood at ₹6.79 compared to ₹27.81 in the previous year. The company's Assets Under Management grew to ₹3,403 crores with a loan portfolio of ₹3,27,595.07 lakhs net of ECL provision.
Asset Quality and Capital Adequacy
Asset quality showed Gross NPA at 6.96% (₹23,309.81 lakhs) with provision coverage of 50.92%. The company revised its Expected Credit Loss model in Q2 FY26, rationalizing provision coverage from 60% to 50% in Q3 FY26. Capital Adequacy Ratio remained strong at 22.02% with Tier I capital at 21.87%. Risk Weighted Assets stood at ₹2,66,079.87 lakhs with robust liquidity coverage ratio of 224.25%.
Business Operations and Strategic Developments
The company diversified into used car loans, commercial vehicle loans, and construction equipment loans, targeting 40% contribution from alternate products by 2028. Digital transformation initiatives included 100% e-NACH framework, 83% digital collections penetration, and Agentic AI for pre-delinquency calling. The company issued ₹150 crores Green Bonds listed on NSE, with proceeds fully utilized for financing 19,167 electric vehicles.
Funding and Resource Mobilization
Funding sources included secured NCDs of ₹1,21,452.47 lakhs (with interest rates 8.40%-10.40%), bank borrowings of ₹1,14,378.89 lakhs, securitization of ₹65,868.24 lakhs, and commercial paper of ₹17,380.15 lakhs. The company maintained credit ratings of CRISIL A+/Positive and ICRA A+/Stable (upgraded to CRISIL AA-/Stable in June 2026).
Corporate Governance and Compliance
The Board comprised 7 directors (57.14% independent, 85.71% non-executive) with 10 meetings held during FY26. All regulatory compliance requirements were met, including maintenance of statutory liquid assets of ₹1,042.99 lakhs against public deposits. The Annual General Meeting is scheduled for August 31, 2026, with no dividend recommended to retain profits for strengthening capital base and supporting future growth.
Related Parties and Subsequent Events
Promoter shareholding remained unchanged with Thomas John Muthoot (19.17%), Thomas George Muthoot (19.05%), and Thomas Muthoot (18.71%). The Board recommended appointment of Ms. Manimekhalai A as Independent Director and re-appointment of Mrs. Shirley Thomas as Independent Director, subject to shareholder approval.