Muthoot Finance Optimistic About Surpassing 15% AUM Guidance For FY26
Muthoot Finance highlighted the company’s focus on surpassing its 15% AUM growth guidance for FY2026, supported by strong gold loan performance and stable net interest margins.

Muthoot Finance Ltd. will continue its conservative approach of providing a 15% growth guidance for its assets under management (AUM) in the financial year ending March 2026 as well, according to the company’s Managing Director George Alexander Muthoot.
In a conversation with NDTV Profit, Muthoot said that since its listing over a decade ago, the company has always given an AUM growth guidance of 15% for its gold loan portfolio but has always delivered more than that.
“We always do an (AUM) guidance of 15% but have always done more than 15%. When you ask me, next year, 2026 also, we will definitely give guidance of 15% for the goal loan (portfolio). But, it usually happens that we are able to do more,” he said.
The top executive noted that Muthoot Finance believes that it should guide for a lower growth number and achieve a higher one.
“We do not want to give a higher guidance than achieved. We would rather give a lower guidance and achieve higher. That has been what we are doing. So if you ask for next year's guidance, etc., we will say 15% minimum, but we will try to do more, and we expect we will be able to do more,” he said.
Speaking about the yield on gold loans, Muthoot acknowledged that the numbers have gone down.
“Second is about the yield. See, at one point in time, our yield was maybe 19-20%. Now it is about 18%,” he said.
The yield has declined as the cost of borrowing has gone up, he explained.
“See, an 18% yield is also determined by the cost of our borrowing. The cost of borrowing actually has gone up in the last year. Our overall borrowing cost has actually gone up,” said the top executive.
Therefore, Muthoot Finance focuses on its net interest margins to determine its growth trajectory, the MD said.
“So we will try to look not at the yield. We look at our net interest margin, which is about 9% plus or minus half a percent. That is what we try to maintain,” he mentioned.
The top executive noted that if the cost of borrowing goes up too much, the company passes it on to the customer.
“So if the cost of borrowing goes up, initially, we will try to absorb it ourselves. But if it is still going up, we try to pass it on to the customer,” Muthoot noted.
Shares of Muthoot Finance Ltd. closed 2.1% lower at Rs 2,232.10 apiece on the NSE on Friday. In comparison, the benchmark Nifty 50 ended 0.8% lower at 24,004.75.