Muthoot Finance raises growth guidance to 30-35% as gold loan demand strengthens

Muthoot Finance has increased its full-year growth guidance to 30-35%, supported by strong gold loan demand across rural and urban markets. Managing Director George Alexander Muthoot said the company had already achieved 21% growth in the first half, prompting the revision. “We have revised the guidance to 30-35%… if there is an opportunity to grow more, we will certainly do it,” he said.

Analysts have suggested the company could reach 38-40% growth, but Muthoot reiterated the official range. On yields, he said it was more important to track net interest margins. “We are thinking at 10.5%,” he noted, adding that borrowing costs may ease by 10-15 basis points over the next few quarters.



The company reported its July-September 2025 quarter results on Thursday, November 13.

Muthoot also addressed competition in the gold loan segment, saying the overall market was expanding as more customers monetised their jewellery. He added that non-banking lenders and banks were both increasing their participation. “The market pie is growing bigger and bigger every day,” he said.

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On subsidiary Belstar Microfinance Ltd, he said losses were “almost bottoming out” and the microfinance unit could return to break-even within two quarters. The company has opened 23 gold loan branches under Belstar and plans to add 150 more by year-end. He said the Reserve Bank of India’s revised rules encouraging MFIs to diversify made gold loans a natural extension. “What runs in our blood should be the gold loan,” he said.

Muthoot Finance has also approved an equity investment of up to ₹500 crore in Muthoot Money, which has shifted focus to gold loans after winding down its used vehicle financing business. The subsidiary now operates about 900 branches and manages a ₹6,000 crore portfolio.

The company, with a market capitalisation of ₹1.48 lakh crore, has seen its shares rise over 106% in the past year.

For the full interview, watch the accompanying video

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