Muthoot Capital slashes FY27 AUM target, exits co-lending
Concall reveals AUM goal cut to ₹4,200 crore from ₹4,500 crore. Co-lending fully wound down despite prior EV partnership talk. Rating upgrade to AA-stable and NPAs at 3.49%.
— 5 earlier stories on Muthoot Capital Services Ltd. →What's new
- FY27 AUM target cut to ₹4,200 crore from ₹4,500 crore without explanation.
- Co-lending fully wound down, contradicting earlier statements on EV partnerships.
- CRISIL rating upgraded to AA-stable; retail gross NPAs fell to 3.49%.
Why this matters
The AUM cut and co-lending exit signal a strategic pullback, though the rating upgrade and NPA improvement provide some cushion. Management's aspirational ₹10,000 crore target by FY28-29 now seems harder to square with the latest retreat.
What we're watching
- Whether borrowing costs actually drop 40-50 bps from the rating upgrade.
- Q3 growth pick-up – the key period management flagged.
- How group network and internal scorecards improve credit acceptance.
The full read
Muthoot Capital's FY27 AUM target now stands at ₹4,200 crore, cut from the earlier ₹4,500 crore. No explanation given. Worse, the co-lending business, previously described as a growth avenue, has been fully wound down. Management says nothing about the EV partnerships it once touted. There are bright spots: a CRISIL upgrade to AA-stable, retail NPAs at 3.49%, and a public deposit book past ₹100 crore. The firm expects borrowing costs to shrink 40-50 bps and pre-tax ROA to reach 2.5% by FY27-end. But the aspirational ₹10,000 crore AUM by FY28-29 is now harder to square with the latest retreat. Q3 is supposed to be the growth quarter; it will have to be a big one.
Questions answered
- Why did Muthoot Capital lower its FY27 AUM target?
- Management cut it from ₹4,500 crore to ₹4,200 crore without giving a reason. The company still aims for ₹10,000 crore by FY28-29.
- Is co-lending completely shut down?
- Yes, the concall confirmed co-lending is fully wound down, despite previous statements that EV partnerships would continue.
- What positive developments were reported?
- CRISIL upgraded the rating to AA-stable, retail gross NPAs fell to 3.49%, and public deposits crossed ₹100 crore.
- What is management's profit outlook?
- Pre-tax ROA guided at 2.5% by FY27-end, with a 40-50 bps reduction in borrowing costs expected from the rating upgrade.
Muthoot Capital Services Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on MUTHOOTCAP →- 17 Jul 2026 · 12:11 PM IST Muthoot Capital slashes FY27 AUM target, exits co-lending
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- 39d ago CRISIL upgrades Muthoot Capital to AA- despite profit crash