Why Did Muthoot Capital’s Q2 Profit Plunge by 82% to Rs 2.83 Crore?
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Synopsis
Muthoot Capital's recent financial report reveals an astounding profit drop despite significant revenue growth. Explore how this financial shift impacts the company's future and what it means for investors.
Key Takeaways
- Net profit fell by 82.3% to Rs 2.83 crore.
- Revenue increased by 41.32% to Rs 153.54 crore.
- EBITDA rose by 17.78% to Rs 86.31 crore.
- Earnings per share dropped to Rs 1.72.
- Muthoot Capital focuses on accessible financial products.
Mumbai, Oct 16 (NationPress) Muthoot Capital Services Limited disclosed a significant downturn in its quarterly profit this Wednesday, despite experiencing robust revenue growth in the September 2025 quarter (Q2 FY26).
The company’s net profit witnessed a staggering decline of 82.3 per cent, dropping to Rs 2.83 crore from Rs 15.97 crore during the same period of the previous financial year (Q2 FY25).
In contrast, the company’s total income demonstrated strong growth. Net sales surged by 41.32 per cent to Rs 153.54 crore in September 2025, up from Rs 108.65 crore in September 2024.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) also showed an increase of 17.78 per cent, reaching Rs 86.31 crore, in comparison to Rs 73.28 crore a year earlier, as per the company's filing.
Despite the revenue increase, profitability suffered, leading to a decrease in earnings per share (EPS) to Rs 1.72 in September 2025 from Rs 9.71 in the same quarter last year.
On the stock market, Muthoot Capital shares were trading 5.2 per cent or Rs 14.20 lower at Rs 258.65 during the intra-day session on NSE.
In the last five days, the shares dropped by 5.95 per cent, or Rs 16.45. Over the past month, the stock has decreased by 6.96 per cent, or Rs 19.35.
Recently, it fell by Rs 1.78, or 0.68 per cent. Year-to-date (YTD), the shares have declined by Rs 73.6, or 22.17 per cent.
In the past year, the stock has plummeted by 30.57 per cent, or Rs 113.8, according to official data.
Muthoot Capital Services Limited, part of the Muthoot Pappachan Group, operates as a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India.
Established in 1994, the company primarily offers vehicle loans for two-wheelers and used cars, in addition to loans for commercial vehicles and small enterprises.
It also provides investment products like fixed deposits and subordinated debts.
The company remains dedicated to delivering accessible and straightforward financial products to customers across India.
Point of View
I find it essential to emphasize that Muthoot Capital's significant profit decline, despite revenue growth, serves as a reminder of the volatile nature of financial markets. Investors must remain vigilant and informed as we navigate these challenging times.
NationPress
16/10/2025
Frequently Asked Questions
What caused the decline in Muthoot Capital's profit?
The profit decline was primarily attributed to increased costs and market conditions despite a rise in revenue.
How did Muthoot Capital's revenue perform?
Muthoot Capital reported a substantial revenue increase of 41.32% in the September 2025 quarter.
What is the company's focus area?
Muthoot Capital primarily focuses on providing vehicle loans and investment products.
How does the stock market respond to Muthoot Capital's results?
The stock market reacted negatively, with shares witnessing a drop of 5.2% during the intra-day session.
What does the future hold for Muthoot Capital?
The company aims to enhance its financial product offerings to better serve its customers despite current challenges.
