Muthoot Capital Services Ltd Reports Q1 FY27 Financial Results
Muthoot Capital Services Limited, a Non-Banking Finance Company (NBFC) promoted by the Muthoot Pappachan Group and registered with the Reserve Bank of India, has released its investor presentation for the quarter ended June 30, 2026. The report highlights the company's portfolio performance, asset quality, and operational growth across various segments including two-wheelers and commercial vehicles.Portfolio Growth and Product Distribution
The company reported a total Assets Under Management (AUM) of ₹ 3,378.69 Cr for Q1 FY27, representing a marginal decline of 1.88% compared to the previous quarter's ₹ 3,443.37 Cr. The portfolio yield remains stable at 20.80%.The product-wise breakdown of the current portfolio shows that Two-Wheeler loans continue to be the primary driver of the company’s business:
| Product | Q4 FY26 | Q1 FY27 | Change | % Growth | Share (Q1) |
|---|---|---|---|---|---|
| Two-Wheeler | 2,373.23 | 2,255.06 | -36.69 | -1.15% | 69.16% |
| Two-Wheeler (CL) | 589.94 | 496.25 | -93.36 | -15.88% | 14.69% |
| Commercial Vehicle | 232.37 | 271.02 | +38.65 | +16.63% | 8.02% |
| Used Car | 155.04 | 178.77 | +23.73 | +15.31% | 5.29% |
| Loyalty Loans | 55.89 | 56.00 | +0.11 | +0.19% | 1.66% |
| Three-Wheeler(CL) | 5.95 | 3.11 | -2.84 | -47.69% | 0.09% |
| Construction Equipment | 5.00 | 8.74 | +3.75 | +74.92% | 0.26% |
| Corp Loan & Others | 25.85 | 28.16 | +2.31 | +8.94% | 0.85% |
| Total | 3,443.37 | 3,378.69 | -64.68 | -1.88% | 100% |
Disbursement and Lending Activity
Muthoot Capital Services reported total retail loan disbursements of ₹ 534.81 Cr in Q1 FY27, reflecting a 5% growth from the ₹ 509.25 Cr recorded in Q4 FY26. The disbursement was primarily led by the Two-Wheeler segment.| Product | Q4 FY26 | Q1 FY27 | Change | % Growth | Share (Q1) |
|---|---|---|---|---|---|
| Two Wheeler | 396.04 | 422.96 | +26.88 | +7% | 79% |
| Com Vehicle | 61.49 | 58.94 | -2.56 | -4% | 11% |
| Con Equipment | 3.96 | 3.14 | -0.82 | -21% | 1% |
| Loyalty Loan | 16.44 | 11.63 | -4.81 | -29% | 2% |
| Used Car | 31.32 | 38.19 | +6.86 | +22% | 7% |
| Total | 509.25 | 534.81 | +25.57 | +5% | 100% |
The company also manages co-lending disbursements, which stood at ₹ 28 Cr for the quarter, a decrease from the ₹ 60 Cr recorded in the previous quarter. Specifically, Greaves Finance accounted for 100% of the current co-lending activity with a disbursement of ₹ 28.13 Cr.
Asset Quality and NPA Management
The company reported its Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) as follows:| Parameters | Jun-25 | Mar-26 | Jun-26 |
|---|---|---|---|
| Gross NPAs | 186.29 | 217.38 | 114.39 |
| GNPA % | 5.76% | 6.97% | 3.94% |
| Net NPA | 84.79 | 133.89 | 76.53 |
| NNPA % | 2.70% | 4.12% | 2.36% |
| Provision Coverage Ratio | 60.00% | 50.00% | 50.00% |
The GNPA ratio improved significantly to 3.94% in June 2026 from 6.97% in March 2026.
Strategic Partnerships and Recovery
Muthoot Capital Services continues to engage in strategic partnerships, including co-lending arrangements with four NBFCs: Greaves Finance, Wheels EMI, CreditWise Capital, and Manba Finance. Additionally, the company maintains a Business Correspondent (BC) partnership with Deccan Finance Ltd, which manages a portfolio of ₹ 499 Cr.Regarding Asset Reconstruction Company (ARC) transactions, the company reported an overall recovery of 67% excluding the most recent ARC activity. The collection for Phoenix ARC saw a Principal Outstanding (POS) reduction from ₹ 235.09 Cr to ₹ 135.62 Cr.
Financial Position and Liquidity
The total borrowings as of June 30, 2026, amounted to ₹ 3,318.36 Cr, distributed across Banks/Financial Institutions (₹ 1,338.30 Cr), Non-Convertible Debentures (NCD) (₹ 1,164.00 Cr), PTC (₹ 689.99 Cr), Public Deposits (₹ 90.98 Cr), and Sub Debt (₹ 26.15 Cr).The public deposit portfolio crossed the ₹ 100 Crore milestone in July 2026. As of June 30, 2026, the total public deposits were:
| Tenure | Balance as on 30.06.2026 |
|---|---|
| 1 year | 14.72 |
| 2 Year | 17.30 |
| 3 Year | 42.70 |
| 4 year | 4.21 |
| 5 year | 13.35 |
| Total | 92.29 |
The company's borrowing costs saw a slight reduction compared to the previous year. The cost on bank loans improved from 10.73% in Q1 FY26 to 9.88% in Q1 FY27, while the overall cost on PTC (including co-lending) moved from 10.05% to 9.87%.
Operational Highlights
The company reported a Profit After Tax (PAT) for Q1 that is up 58% Quarter-on-Quarter. The current balance sheet stands at ₹ 4,079 Cr, with active loans totaling 5,77,834.| Metric | Value |
|---|---|
| AUM | ₹ 3,297 Cr |
| Borrowings | ₹ 3,311 Cr |
| Disbursements | ₹ 564.98 Cr |
| PAT (Q1) | +58% QoQ |
| EPS | ₹ 4.94 |
| ROA | 1.35% |
MUTHOOTCAP Stock Price Movement
Muthoot Capital Services Limited shares rallied 2.66% on Thursday to settle at ₹233.77. The stock climbed from a low of ₹227.5 during the session, finishing with a total volume of 65,739 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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