Muthoot Capital Services Q1 FY27 Results: Net Profit Surges 51.4% Sequentially to ₹812.21 Lakhs, Turning Profitable Year-on-Year

Muthoot Capital Services Limited, a prominent non-banking financial company (NBFC) and the automotive finance arm of the Muthoot Pappachan Group, today announced its unaudited financial results for the first quarter of fiscal year 2027 ended June 30, 2026. The company delivered a highly resilient performance, recording robust bottom-line growth sequentially and staging a full operational turnaround compared to the loss-making corresponding quarter of the previous fiscal.

Strong Operational Turnaround and Profit Expansion

Muthoot Capital registered a consolidated net profit of ₹812.21 lakhs for Q1 FY27. This highlights a powerful 51.4% expansion sequentially from the ₹536.54 lakhs posted in Q4 FY26. More significantly, the bottom line swung firmly back into positive territory on a year-on-year (YoY) basis, completely recovering from the net loss of ₹466.99 lakhs incurred in Q1 FY26.

Total comprehensive income for the quarter rolled in at ₹794.90 lakhs, matching the strong operational trend after absorbing an other comprehensive loss of ₹17.31 lakhs (primarily reflecting fair value changes on equity instruments).

Core Income Trajectory and Revenue Mix

Total revenue from operations for the quarter stood at ₹15,552.81 lakhs, up 7.1% YoY from ₹14,520.31 lakhs, though down 6.5% sequentially due to the high base of Q4 FY26 which had benefited from a large ₹1,135.55 lakhs chunk of derecognized financial instrument gains.

Interest Income: Reached ₹14,852.49 lakhs, tracking solid growth both year-on-year (up 7.0% from ₹13,878.40 lakhs) and sequentially (up 1.1% from ₹14,694.98 lakhs).

Fees and Charges Income: Contributed ₹699.46 lakhs to the top-line asset mix.

Other Income: Climbed sharply to ₹510.93 lakhs, a substantial sequential jump of 147.4% from ₹206.49 lakhs.

Total overall income for the three-month period aggregated to ₹16,063.74 lakhs.

Sharp Reduction in Impairment Reverses Credit Costs

A pivotal factor in Muthoot Capital's profit revival was an aggressive reduction in provisions and structural credit costs:

Total Expenses: Fell to ₹14,978.39 lakhs, down 5.8% sequentially from ₹15,898.66 lakhs, and down 2.5% YoY from ₹15,354.97 lakhs.

Impairment on Financial Instruments: Dropped dramatically to ₹795.01 lakhs. This represents an asset quality relief of 61.7% sequentially (down from ₹2,073.65 lakhs) and 70.1% YoY (down from ₹2,656.14 lakhs), directly boosting operational margins.

Finance Costs: Remained stable at ₹7,787.33 lakhs compared to ₹7,757.50 lakhs in Q4 FY26.

Employee Benefit Expenses: Stood at ₹3,151.54 lakhs, reflecting systematic scale expansions over the prior quarters.

Other Administrative Expenses: Adjusted to ₹3,135.90 lakhs.

Pre-Tax Margins and EPS Reflection

The company achieved a Profit Before Tax (PBT) of ₹1,085.35 lakhs for Q1 FY27, showing incremental improvement over the PBT of ₹943.85 lakhs (before exceptional items) in Q4 FY26, and entirely reversing the pre-tax loss of ₹616.71 lakhs from Q1 FY26. Total tax outgo for the period stood at ₹273.14 lakhs, comprised entirely of deferred tax items.

Reflecting this consistent recovery, the non-annualized basic and diluted Earnings Per Share (EPS) (face value of ₹10 each) jumped to ₹4.94 per share, up from ₹3.26 per share in the preceding quarter and recovering from a negative EPS of ₹2.84 per share a year ago. Paid-up equity share capital remained steady at ₹1,644.75 lakhs.

Shares of Muthoot Capital Services Limited was last trading in BSE at Rs. 222.30 as compared to the previous close of Rs. 234.35. The total number of shares traded during the day was 5027 in over 336 trades.

The stock hit an intraday high of Rs. 244.55 and intraday low of 221.00. The net turnover during the day was Rs. 1144804.00.

Source : Equity Bulls

Keywords

MuthootCapitalServices INE296G01013 NBFC Q1FY27 Q1FY2027 ResultUpdate