Muthoot Capital Services Limited – Investor Presentation Summary

Key Operational Highlights

  • Total AUM stood at ₹3,379 Cr as of June 30, 2026, a growth of 4.2% YoY but a decrease of 1.88% QoQ from ₹3,443.37 Cr.
  • The number of live loans is 5,77,834.
  • Key drivers: Growth was driven by a 23% YoY increase in the MCSL Retail Portfolio, which reached ₹2,851 Cr and constitutes 84% of total AUM.

Segment-wise Performance

  • Two-Wheeler Loans: ₹2,255.06 Cr (69.16% of portfolio), a decrease of 1.15% QoQ.
  • Two-Wheeler (Co-Lending): ₹496.25 Cr (14.69% of portfolio), a decrease of 15.88% QoQ.
  • Commercial Vehicle Loans: ₹271.02 Cr (8.02% of portfolio), an increase of 16.63% QoQ.
  • Used Car Loans: ₹178.77 Cr (5.29% of portfolio), an increase of 15.31% QoQ.
  • Loyalty Loans: ₹56.00 Cr (1.66% of portfolio), an increase of 0.19% QoQ.
  • Explanation of significant changes: The Co-Lending portfolio decreased 44% YoY, while the Corp Loan & Other portfolio decreased 16% YoY.

Financial Highlights

  • PAT: ₹7.95 Cr for Q1 FY27, representing a 58% increase QoQ.
  • EPS: ₹4.94.
  • ROA: 1.35%.
  • Portfolio Yield: 20.80%, reported as stable.
  • Drivers of financial performance: Improved asset quality and profitability.

Asset Quality and NPA Movement

  • Overall GNPA: 3.94% (₹130.07 Cr), an improvement of 182 bps YoY from 5.76%.
  • Overall NNPA: 2.36% (₹76.53 Cr).
  • Provision Coverage Ratio: 50.00%.
  • A significant reduction in Gross NPAs was achieved by transferring ₹119.83 Cr of loans to an ARC during the quarter.
  • Gross NPA movement: Opening balance was ₹194.90 Cr, additions were ₹39.41 Cr, and the closing balance was ₹103.57 Cr after the ARC transfer and other reductions.

Capex & Cash Flow Health

  • Capital Expenditure: Not Specified.
  • Free Cash Flow: Not Specified.
  • Operating Cash Flow: Not Specified.
  • Investment Rationale: Not Specified.

Strategic & R&D Initiatives

  • Strategic Partnerships: Business Correspondent (BC) Partnership with Deccan Finance Ltd. (Portfolio: ₹7.92 Cr; Active Borrowers: 2,170).
  • Co-Lending Partners: Include Greaves Finance (Disbursements: ₹28.13 Cr in Q1 FY27).
  • ARC Transactions: The company has engaged with Phoenix ARC and PRASADITYA ARC. Total collections since sales began are ₹125 Cr against a total SR reduction of ₹97 Cr, representing a 67% overall recovery rate.

Industry Trends & Business Environment

  • Macro/Industry Trends: Not Specified.
  • Impact on Company: The overall conditions prevailing have not been conducive for raising funds, though there is a steady flow of funds through different modes.

Management Commentary & Growth Outlook

  • Strategic Outlook: Not Specified.
  • FY Guidance: Not Specified.
  • Risks and Opportunities: Not Specified.

Liability Analysis

  • Total Borrowings: ₹3,311 Cr, constituting 81% of the Balance Sheet size of ₹4,079 Cr.
  • Borrowing Cost: 9.6%.
  • Public Deposits: ₹92.29 Cr as of June 30, 2026, with a portfolio that crossed the ₹100 Crore milestone in July 2026.
  • Shareholders' Fund: ₹678 Cr, a 1% increase QoQ.

Liquidity Position

  • Structural Liquidity: A detailed ALM statement is prepared and submitted to RBI. The cumulative mismatch for the 6-12 month bucket was 28.03% of total outflows.
  • Bank Balance: ₹318 Cr as of June 30, 2026, to meet any requirement.
  • Liquidity Coverage Ratio (LCR): Disclosed but specific value not provided in the text.

Investments

  • Total Investment Value: Approximately ₹232 Cr, comprising SLR Investments (₹12.40 Cr, Yield: 6.39%), PTC Investments (₹9.73 Cr, Yield: 11.00%), SLR Deposit (₹3.13 Cr, Yield: 7.28%), Collateral Deposit with Bank (₹78.57 Cr, Yield: 6.51%), and Fixed Deposit with Bank (₹128.05 Cr, Yield: 6.52%).
  • Overall Investment Yield: 6.71%.

Collections

  • Total Collections in Q1 FY27: ₹162.25 Cr.
  • Sources of Collections: Breakdown provided but specific figures are not detailed in the provided text.

Insurance Income

  • The company acts as a Corporate Agent for insurance, but specific income figures are not provided.