Muthoot Capital Services Ltd(MUTHOOTCAP)

NSE: MUTHOOTCAPBSE: 511766

₹ 190+5.00%refreshed 27 Oct, 12:14 pm ISTMarket cap: ₹ 313 crNext results: 5 Nov 2026Website: www.muthootcap.comUpdated: 27 Oct 2026

About

Muthoot Capital Services Ltd is a Muthoot group non-banking financial company that lends mainly for two-wheelers, and also finances commercial vehicles, used cars and construction equipment. Its total AUM, including the managed book, stood at ₹3,379 Cr in Q1 FY27; the company's own retail book was ₹2,851 Cr and the co-lending book was ₹499 Cr. It offers auto loan financing in 22 States, and its reported revenue for FY26 was 620.55.^[1][2][3]

Loan book and mix

Total AUM including the managed book was ₹3,379 Cr in Q1 FY27, up 4% YoY, compared with ₹3,441 Cr in Q4 FY26.^[1]
The company's own retail book grew 23% YoY to ₹2,851 Cr in Q1 FY27. The co-lending book fell 44% YoY to ₹499 Cr.^[1]
Co-lending disbursements were ₹28 Cr in Q1 FY27, against ₹120 Cr a year earlier. Management said there is no new co-lending business.^[1]
Used cars made up 8.5% of AUM in Q1 FY27, against about 2% a year earlier. Commercial vehicle and used car loans together grew about 40% YoY, and construction equipment loans grew 75% YoY.^[1]
Over FY26, the commercial vehicle book grew from ₹61.25 Cr to about ₹240 Cr and the used car book from ₹86 Cr to ₹155 Cr.^[4]
Own disbursements were ₹534.81 Cr in Q1 FY27, up 5% QoQ.^[1]

Products and customers

By the end of FY26 the planned product range was new two-wheelers, used two-wheelers, used cars, used commercial vehicles, used construction equipment and loyalty loans.^[5]
The company also keeps a small corporate loan book alongside its vehicle loans, as of FY25.^[2]
The company added 64,458 customers in Q3 FY26, bringing live customers to close to 6 lakh.^[5]
Management aims to bring two-wheelers down to about 30% of the book over 3-4 years, with cars, commercial vehicles, construction equipment and possibly tractors making up 70%.^[1]

Distribution and group sourcing

As of FY25, the company offered auto loan financing in 22 States and worked with 5,000+ dealer points, using the 4,000+ branches of group company Muthoot FinCorp.^[2]
As of FY25 it sold through its own team, co-lending partners, marketing agents and franchisees; co-lending and BC partners included Deccan, Greaves, Wheels EMI, Manba Finance, UP Money and Credit Wise Capital.^[2]
Muthoot group companies sourced 15-20% of new monthly disbursements in Q1 FY27. About 25-30% of Muthoot FinCorp's 4,000+ branches are active. The target is 40% of sourcing by the end of FY27.^[1]
From FY27, Muthoot Microfin, SIP and Muthoot Housing Finance were signed on as referral sources, alongside Muthoot FinCorp.^[4]
The company plans no new regions in FY27 and will focus more on Maharashtra and Tamil Nadu.^[4]

Asset quality

Gross NPA was 3.94% in Q1 FY27, down from 5.76% in June 2025. Retail gross NPA was 3.49%.^[1]
Net NPA was 2.36% in Q1 FY27, down 34 bps YoY. Provision coverage on Stage 3 loans was 50%.^[1]
The company completed its third sale of stressed loans to an asset reconstruction company: ₹203 Cr, valued at 45.6%. Gross NPA on new loans 14 months after disbursal was 1%.^[1]
The monthly share of standard loans slipping into arrears fell from 0.80% at the start of FY26 to 0.43% in Q4 FY26.^[4]

Yields, funding and capital

Portfolio yield was 20.80% in Q1 FY27, compared with 21.02% in Q4 FY26.^[1]
Overall borrowing cost was 10.31% in Q1 FY27, against 10.74% in Q1 FY26. The cost of new borrowing in Q1 FY27 was 9%.^[1]
The FY25 annual report noted most borrowings are working capital loans or cash credit repricing within 12 months, while lending is at fixed rates.^[2]
The public deposit book reached ₹100 Cr, crossed in July 2026, growing 113% YoY. An online deposit option was launched.^[1]
Capital adequacy ratio was 22.07% and debt to equity was 4.88x in Q1 FY27.^[1]
Liquidity coverage ratio was 129% in Q4 FY26. Bank sanctions doubled YoY to ₹865 Cr in FY26.^[4]

Technology and operations

In Q1 FY27, AI bots handled all collections for the earliest overdue bucket and resolved 55% of cases in June.^[1]
In Q4 FY26, about 65% of loan applications were processed without manual handling, with a target of 90%. KYC became fully digital from May 2026.^[4]

Targets

Management restated an AUM target of ₹4,000-4,200 Cr for FY27 and ₹10,000 Cr by FY28-29.^[1]
Management targets a pretax return on assets of about 2.5% in FY27.^[1]
A ₹400 Cr equity raise through compulsorily convertible preference shares had not closed by the Q1 FY27 call. Investor meetings were expected in Q2 FY27.^[1]

Recent developments

On 3 Oct 2026, the company approved a private placement of up to ₹200 Cr in secured debentures. They run 36 months at a 9.25% coupon paid monthly, with principal repaid at maturity.^[6]
In Q1 FY27, CRISIL upgraded the company to AA-/Stable on its bank lines, debentures, deposits and market-linked debentures. In Q3 FY26 the rating had been A+ with a positive outlook.^[1]
In March 2026, the company sold a pool of about ₹100 Cr of loans to Hinduja. It was the company's first such loan sale in 3-4 years.^[4]
In Q3 FY26, the company closed a ₹300 Cr, 6-year green bond backed by GuarantCo and arranged through Axis Bank.^[5]

Market Cap

₹313 Cr

High / Low

₹312 / 176

Stock P/E

12.5

Price / Book

0.5

Book Value

₹408

EPS

₹6.8

No. of Shares

1.64 Cr

ROE

1.7%

Debt / Equity

4.94

Sales

₹621 Cr

Net Profit

₹11 Cr

Promoter holding

63.3%

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