Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
Muthoot Capital Services Ltd

| Statement of Audited Financial Results for Year Ended March 31, 2026

Report Source

⬤8th May 26

Summary : Revenue grew, but profit declined significantly due to higher impairments and deteriorating asset quality.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Finance costs: 31,521.42 Lakhs (FY26)
  2. Impairment on financial instruments: 7,557.03 Lakhs (FY26)
  3. Employee benefits expenses: 9,510.92 Lakhs (FY26)
  4. Other expenses: 10,103.25 Lakhs (FY26)
  5. ₹1,235 lakhs written off during the quarter.
  6. Interest Income: 58,091.64 Lakhs (FY26)
  7. Fees and Charges Income: 2,760.49 Lakhs (FY26)
  8. Net gain on derecognition of financials instruments: 1,135.55 Lakhs (FY26)
  9. Other income: 1,197.52 Lakhs (FY26)
  10. Net cash used in Operating Activities: (37,537.32) Lakhs (FY26)
  11. Net cash used in Investing Activities: (2,385.14) Lakhs (FY26)
  12. Net cash generated from Financing Activities: 46,717.26 Lakhs (FY26)
  13. Closing Cash and Cash Equivalents: 36,486.19 Lakhs (FY26)
  14. Total Assets: 4,05,560.62 Lakhs (FY26)
  15. Loans (Net): 3,27,595.07 Lakhs (FY26)
  16. Total Liabilities: 3,38,518.54 Lakhs (FY26)
  17. Total Equity: 67,042.08 Lakhs (FY26)
  18. Audited Standalone Financial Results.

Corporate Overview

  1. India (Registered office in Kochi, Kerala).
  2. Significant increase in impairment on financial instruments.
  3. Decline in profit before tax and profit for the period.
  4. Deterioration in asset quality (GNPA, Net NPA ratios).
  5. Decrease in provision coverage ratio.
  6. Managing fraud incidents.
  7. Funding through debt securities and borrowings.
  8. Primarily engaged in financing business.
  9. Non-banking financial company (NBFC).
  10. Factual and compliance-oriented reporting.
  11. Individuals
  12. Small Businesses
  13. Interest Income
  14. Fees and Charges Income
  15. Net gain on derecognition of financials instruments
  16. Other Operating Income

Risk Factors

  1. Significant decline in net profit.
  2. Deteriorating asset quality (GNPA, Net NPA).
  3. Increased impairment on financial instruments.
  4. Lower provision coverage for bad loans.

Key Drivers

  1. Strong growth in interest income.
  2. Increased total revenue from operations.
  3. Loan book and total assets expanded.
  4. Improved operating cash flow (less negative).

Auditor’s Report

  1. Unmodified opinion.

Board Commentary

  1. Credit risk (impairment, NPAs).
  2. Operational risk (fraud).
  3. No specific legal issues reported; compliance with SEBI and RBI regulations.
  4. Capital advance of 500.00 Lakhs.

Corporate Governance

  1. Auditors followed Code of Ethics issued by ICAI.
  2. Audit Committee reviewed and recommended results.

Management Discussion & Analysis

Operational Focus Areas

  1. Managing credit impaired assets.
  2. Maintaining provisioning policy.
  3. Ensuring security cover for debentures.
  4. Compliance with regulatory requirements.

Performance Drivers

  1. Growth in loan book and total assets.
  2. Increased interest income and total revenue from operations.

Risk Control Measures

  1. Provisioning policy for credit impaired assets (50% NNPA below 6%).
  2. Policies to prevent uncollectible receivables.
  3. Maintaining 100% security cover for debentures.
  4. 100% provision for reported fraud incidents.

Critical Risks

  1. Credit risk: Significant increase in impairment, GNPA, Net NPA.
  2. Operational risk: Fraud incidents reported.
  3. Liquidity risk: Negative cash flow from operating activities.
  4. Increased leverage (Debt Equity Ratio).
Muthoot Capital Services Ltd (MUTHOOTCAP) Quarterly Report Analysis & Insights | Dhanarthi