How did Muthoot Finance perform compared to Manappuram Finance in Q2FY26?

Muthoot Finance's net profit jumped nearly 87.5% year-over-year in Q2FY26, outperforming its rival Manappuram Finance, which saw a 20% drop in net profit during the same period.

What was the key driver behind the strong performance of Muthoot Finance?

Muthoot Finance benefited from a surge in gold loan demand, with its gold loan assets under management (AUM) increasing 45% year-over-year to Rs 1.24 lakh crore, the highest ever. The company also saw an improvement in its average loan yield and net interest margin.

What challenges did Manappuram Finance face in Q2FY26?

Manappuram Finance faced higher impairment costs and operational expenses, leading to a nearly 20% year-over-year drop in its standalone net profit. The company also saw a decline in its net yield from the previous year.

Home / Business and Economy / Muthoot Finance Outperforms Manappuram in Q2FY26 Amid Gold Loan Boom

Muthoot Finance Outperforms Manappuram in Q2FY26 Amid Gold Loan Boom

16 Nov

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Summary

Gold loan demand surges 115% year-over-year
Muthoot Finance's net profit jumps 87.5% in Q2FY26
Manappuram Finance faces higher NPAs and operational costs

Muthoot Finance Outperforms Manappuram in Q2FY26 Amid Gold Loan Boom

The gold loan market in India has been on a strong upward trajectory, with the total outstanding loans reaching Rs 3.16 lakh crore as of September 2025, up from Rs 1.47 lakh crore a year earlier. This surge in demand has significantly benefited the two leading gold loan NBFCs, Muthoot Finance and Manappuram Finance.

In the second quarter of fiscal year 2026 (Q2FY26), Muthoot Finance, the country's largest gold loan financier, has emerged as the clear winner over its closest rival, Manappuram Finance. Muthoot's average loan yield improved to 19.99% from 18.65% a year earlier, while its net interest margin (NIM) expanded to 11.2% from 9.6%. This, combined with a 45% year-over-year growth in its gold loan assets under management (AUM) to Rs 1.24 lakh crore, helped the company's standalone net profit jump nearly 87.5% to Rs 2,345 crore.