Muthoot Finance Ltd reported a 32.7% year-on-year (YoY) rise in net profit to ₹1,363 crore for the October-December quarter of FY25, compared to ₹1,027.3 crore in the same period last year.

The company’s net interest income (NII) surged 42.8% YoY to ₹2,721.4 crore, up from ₹1,905.7 crore in Q3 FY24.

“We are pleased to report another strong quarter, building on our robust performance trajectory. In Q3 FY25, our Standalone Loan AUM witnessed a significant growth of ₹26,305 crores, driven by a robust 37% YoY growth in our core gold loan portfolio,” George Alexander Muthoot, Managing Director, Muthoot Finance, said.

The gold loan-focused NBFC also delivered a better-than-expected performance as it surpassed analyst estimates.

A CNBC-TV18 poll had projected net profit at ₹1,311.1 crore and NII at ₹2,586.7 crore, both of which the company exceeded.

“This was in tandem with the accelerated demand for gold loans, especially during the festive season. Our Standalone Profit after Tax for 9M grew by 23% YoY at ₹3,693 crores,” he added.

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Ahead of the earnings announcement, shares of Muthoot Finance ended the day flat at ₹2,176.85 on the BSE, down 0.47%.

The NBFC’s board of directors also approved fund-raising up to ₹21,063.50 crore by issuance of redeemable non-convertible debentures on Wednesday.

Muthoot Finance stated that it has tempered disbursements in response to challenges in the microfinance sector, with a continued focus on strengthening collections and enhancing the quality of its loan book.

The company is closely monitoring the industry situation, viewing it as a transitionary issue that is expected to be resolved in the next couple of quarters.

Additionally, the expansion of its branch network and increased adoption of digital platforms have further strengthened customer engagement, with a significant portion of transactions now being facilitated through digital channels.