Muthoot Fincorp Bonds

Muthoot Fincorp is the flagship NBFC of the Muthoot Pappachan Group (MPG), with gold loans forming the core of its lending business. It has expanded into MSME lending and other financial services while retaining a strong presence in gold financing. Its standalone AUM increased to ₹65,690 crore in June 2026 from ₹57,580 crore in March 2026.

CRISIL upgraded its long-term rating to AA/Stable in June 2026, subsequently reaffirming it in September. The agency cited the company's established position in gold financing, improving earnings and strong liquidity. Brickwork also assigned and reaffirmed ratings on various facilities, although the rating differs by instrument.

Entity and business: Muthoot Fincorp is a non-deposit-taking, systemically important NBFC classified in the middle layer under RBI's scale-based regulatory framework. Its core business is lending against gold jewellery. It also offers MSME and business loans, loan against property, money transfer, foreign exchange and insurance distribution services.

Promoters: The company is led by Thomas John Muthoot, Chairman and Managing Director, and his brothers Thomas George Muthoot and Thomas Muthoot, Joint Managing Directors. The promoters have more than seven decades of experience in gold-backed lending.

Group: The Muthoot Pappachan Group has interests in financial services, hospitality, real estate, healthcare, information technology, automotive businesses and precious metals. Its financial services operations include Muthoot Microfin, Muthoot Capital Services and Muthoot Housing Finance. Muthoot Microfin was listed in December 2023.

Funding: Muthoot Fincorp raises funds through bank loans, public and privately placed NCDs, subordinated debt, perpetual debt instruments, commercial paper, external commercial borrowings and securitisation. During FY26, it raised approximately ₹15,153 crore through various funding avenues at a weighted average interest rate of around 9%.

Scale: As of March 2026, the Muthoot Pappachan Group reported AUM of ₹76,886 crore, 5,644 branches and offices, 69.5 lakh active customers and more than 47,000 employees. The group's overall AUM increased to ₹86,965 crore in June 2026.

Performance (FY26, standalone): Muthoot Fincorp reported PAT of ₹1,640 crore, compared with ₹787 crore in FY25. Its GNPA was 1.03% in March 2026, while CRISIL reported standalone RoMA of 3.1% for FY26. In Q1 FY27, PAT increased to ₹706 crore, with GNPA of 0.77% and NNPA of 0.40%.

Muthoot Fincorp's standalone AUM reached ₹65,690 crore in June 2026, while net worth increased to ₹7,908 crore. Its capital adequacy ratio stood at 18.06%. Standalone gearing was approximately 6.0x, or 5.7x after adjusting for liquidity, according to CRISIL. Asset quality remained strong in the gold loan portfolio, with GNPA at 0.77% and NNPA at 0.40% in June 2026.

Note: Gearing figures are standalone and adjusted for liquidity where specified. Group AUM, standalone AUM and total managed assets are different measures and should not be used interchangeably.

The Muthoot Pappachan Group traces its origins to a family business established in Kerala more than 138 years ago. The group has been involved in lending against gold jewellery for more than seven decades.

Muthoot Fincorp was incorporated on 10 June 1997 as Muthoot Debt Management Services Limited. It was subsequently renamed Muthoot Fincorp Limited in March 2002. The company received its RBI NBFC registration in July 2002 and developed its business around gold-backed lending.

Over time, it built an extensive branch network across South India and expanded into other parts of the country. The group subsequently diversified into microfinance, housing finance and vehicle finance through separate entities. Muthoot Microfin, its microfinance subsidiary, was listed in December 2023.

Muthoot Fincorp's standalone AUM increased from ₹22,866 crore in FY24 to ₹57,580 crore in FY26. It further grew to ₹65,690 crore in June 2026. The expansion was supported by gold loan growth, higher disbursements and co-lending arrangements.

Muthoot Fincorp is led by the promoter family, with Thomas John Muthoot serving as Chairman and Managing Director. His brothers Thomas George Muthoot and Thomas Muthoot serve as Joint Managing Directors.

The company's September 2026 public NCD prospectus and annual report should be used to confirm the complete current board and management list. The following promoter directors and key management details are available from company and public disclosures.

Key management:

• Mr. Shaji Varghese: Chief Executive Officer
• Mr. Joseph Oommen: Chief Financial Officer
• Mr. Sachu Sivas: Company Secretary and Compliance Officer

Editor note: The above promoter-director DINs are based on public corporate records. Add the independent directors and verify the complete current board against the September 2026 Tranche V prospectus and latest MCA filings before publication.

Muthoot Fincorp is a closely held, unlisted public company promoted by the Muthoot Pappachan family. Its equity is not listed on the stock exchanges, so it does not publish the same quarterly exchange shareholding pattern as a listed company.

The promoter family controls the company through its shareholding and group structure. For a precise shareholder-wise breakdown, use the latest public NCD prospectus rather than estimating the promoter and related-party holdings from rating reports.

Muthoot Fincorp's standalone AUM grew from ₹22,866 crore in FY24 to ₹57,580 crore in FY26. PAT increased from ₹563 crore in FY24 to ₹1,640 crore in FY26, reflecting higher business volumes and improved profitability. Total income rose to ₹8,364 crore in FY26 from ₹5,551 crore in FY25.

Standalone net worth increased to ₹6,689 crore in March 2026 and further to ₹7,908 crore in June 2026. However, gearing also increased as the company expanded its loan book. CRISIL reported standalone gearing of 6.4x in March 2026 and approximately 6.0x in June 2026, with the June figure reducing to 5.7x after adjusting for liquidity.

*Net worth of ₹7,908 crore is as of June 2026.
*Q1 FY27 RoMA is annualised.
Note: CRISIL's gearing measure is adjusted for perpetual debt instruments where applicable. The gearing figures shown above are not necessarily directly comparable with net debt-to-equity ratios in the company's quarterly disclosures.

1. Experienced Promoters: Backed by over seven decades of promoter expertise, MPG has built a leading franchise, ranking among India's top four gold loan NBFCs and top three non-bank microfinance players.
2. Strong Capitalization: Fincorp networth stood at 6,689 crs in FY’26, board of directors of the company has also approved for IPO to raise capital upto Rs 4000 crore which will further strengthen the overall capital position of the company.
3. Healthy Earnings: PAT nearly tripled from ₹563 crore in FY'24 to ₹1,640 crore in FY'26, reflecting strong earnings growth.

1. Geographical concentration: High geographical concentration, with ~55% of the gold loan portfolio concentrated in South India as on March 31, 2026.
2. Asset Quality: High gearing of 6.4x and a 35% share of relatively higher-risk non-gold loan segments remain key monitorables

Muthoot Fincorp is rated CRISIL AA/Stable for its long-term bank facilities, NCDs and subordinated debt. Its perpetual debt instruments carry a lower CRISIL AA-/Stable rating, while its commercial paper is rated CRISIL A1+.

CRISIL upgraded the company's long-term rating from AA-/Positive to AA/Stable in June 2026. It reaffirmed the ratings in September 2026 and assigned a CRISIL AA/Stable rating to a fresh ₹100 crore NCD issue.

Brickwork has also assigned and reaffirmed ratings on Muthoot Fincorp's debt instruments. However, the rating on the September 2026 public NCD issue was BWR AA/Stable. The BWR AA+ rating cited in some group disclosures relates to different instruments or earlier rating actions and should not be applied to all Muthoot Fincorp debt.

Note: CRISIL's September 2026 rating rationale lists long-term instruments at CRISIL AA/Stable and CRISIL AA-/Stable, depending on the instrument. Its commercial paper rating is A1+. The September 2026 public NCD issue carried BWR AA/Stable. Check the latest Brickwork instrument-wise rationale before quoting BWR AA+ for any specific instrument.

Muthoot Fincorp also raises capital through subordinated debt and perpetual debt instruments. These instruments have different repayment priorities and regulatory treatment from senior secured NCDs.

Perpetual debt instruments do not have a conventional fixed maturity. Their coupon payments may be deferred under the applicable terms and regulatory framework. Subordinated debt and perpetual instruments carry greater structural risk than senior secured NCDs because of their lower repayment priority.

Investors should review the specific issue's information memorandum, security cover, coupon-deferral provisions, loss-absorption terms and redemption conditions before investing.

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