Muthoot Capital Services Limited's Board of Directors approved the unaudited financial results for the quarter ended June 30, 2026, at their meeting held on July 16, 2026, from 3:00 PM to 8:00 PM. The results were reviewed by the Audit Committee and accompanied by a limited review report from statutory auditors Sundaram & Srinivasan (Firm Registration No. 004207S).
Financial Performance (₹ in lakhs)
Revenue from Operations: ₹15,552.81 (Q1 FY27) vs ₹14,520.31 (Q1 FY26)
- Interest Income: ₹14,852.49
- Fees and Charges Income: ₹699.46
- Net gain on fair value changes: ₹0.86
Total Income: ₹16,063.74 (Q1 FY27) vs ₹14,738.26 (Q1 FY26)
- Other Income: ₹510.93
Expenses: ₹14,978.39 (Q1 FY27) vs ₹15,354.97 (Q1 FY26)
- Finance Costs: ₹7,787.33
- Impairment on financial instruments: ₹795.01
- Employee benefits expenses: ₹3,151.54
- Depreciation, amortisation and impairment: ₹108.61
- Other expenses: ₹3,135.90
Profit/(Loss) Before Tax: ₹1,085.35 profit (Q1 FY27) vs ₹(616.71) loss (Q1 FY26)
Tax Expense: ₹273.14
Net Profit/(Loss): ₹812.21 profit (Q1 FY27) vs ₹(466.99) loss (Q1 FY26)
Earnings Per Share: Basic and Diluted EPS of ₹4.94 (Q1 FY27) vs ₹(2.84) (Q1 FY26)
Total Comprehensive Income: ₹794.90 for the quarter
Paid-up Equity Share Capital: ₹1,644.75 lakhs (unchanged)
Asset Quality and Provisions
Gross NPA: 3.94% of advances (₹13,007.02 lakhs) as of June 30, 2026, improved from 6.96% (₹23,309.81 lakhs) as of March 31, 2026
Net NPA: 2.36% of advances net of Stage 3 provision (₹7,808.53 lakhs) as of June 30, 2026, improved from 4.12% (₹13,380.65 lakhs) as of March 31, 2026
Provision Coverage Ratio: 50.23% as of June 30, 2026 vs 50.92% as of March 31, 2026
Additional Provisions: The company maintained an additional management overlay of ₹2,047 lakhs and a proactive additional provisioning buffer of ₹250 lakhs for the upcoming ECL model review.
Fraud Incidents: Classified 8 incidents of fraud totaling ₹91.80 lakhs due to misappropriation and forgery, with 100% provision provided.
Portfolio Sale to ARC
The company completed the sale and transfer of a stressed loan portfolio with aggregate principal outstanding of ₹203.01 crores to Prasaditya ARC Limited (formerly Pridhvi Asset Reconstruction and Securitization Company Limited) through the Swiss Challenge Method. The portfolio comprised:
- Gross Non-Performing Assets (GNPA): ₹119.83 crores
- Written-off loans: ₹83.18 crores
The transaction was concluded for total consideration of ₹93.20 crores (45.91% valuation), with:
- Security Receipts recognized: ₹81.01 crores
- Upfront cash received: Remaining amount
- Impairment expense credit: ₹17.2 crores credited to Profit & Loss statement
Securitization Transactions (Q1 FY27)
SEED 05 2026: 14,692 loan accounts, ₹10,607.81 lakhs, 13% beneficial economic interest, 1.91 years weighted average maturity
INTELEON 05 2026: 13,833 loan accounts, ₹9,054.56 lakhs, 10% beneficial economic interest, 1.79 years weighted average maturity
Both transactions had 100% tangible security coverage.
Debenture and Security Cover
All secured non-convertible debentures aggregating ₹115,672.79 lakhs are fully secured by pari-passu charge on assets. The company maintains 100% security cover or higher as per terms, with total security cover of 1.24 times of principal and interest.
Utilization of Issue Proceeds
No deviation or variation in use of funds raised through private placement of non-convertible debentures (ISIN: INE296G07325) amounting to ₹150 crores, which were utilized for on-lending as per the original object.