Muthoot Capital Services Limited is an India-based non-banking financial company (NBFC) primarily engaged in financing the purchase of automobiles, mainly two-wheelers and used four-wheelers, against hypothecation of the vehicles, and granting personal and business loans. Founded in 1994 and based in Kochi, India, it operates as a deposit-taking NBFC and is a part of the renowned Muthoot Group, which holds a strong reputation and brand, particularly in South India. The company benefits from the promoters' over 30 years of experience in the lending business.
Muthoot Capital Services began its operations in 2-wheeler financing in 1998 and has since expanded its offerings to include financing for used cars, consumer durables, and small-ticket business loans. Beyond its internal sales force, the company leverages the extensive network of over 3500 branches and the large customer base of its parent group, Muthoot Finance Limited (MFL), for loan origination and collection processes.
Muthoot Capital Services has strategically diversified its product portfolio to cater to various market segments. The company's offerings include retail finance products such as Two-Wheeler Loans and Used Car Loans, along with business loans for corporations. It also provides investment products like Fixed Deposits and subordinated debts. Their expanded service offerings encompass non-convertible debentures, auto loans, small and medium enterprise (SME) loans, lease financing, and bonds. Additionally, they offer financial advisory services and wealth management, including pre-approved loyalty loans. The business model is centred on secured lending, which helps to minimize credit risks while serving customers across multiple states in India.
As of July 2025, Muthoot Capital Services Ltd. (MUTHOOTCAP) commanded a market capitalization of ₹521.55 Crore. The company's Price-to-Earnings (P/E) ratio stands at 11.40. Its stock performance indicates a 52-week high of ₹405.75 and a 52-week low of ₹234.01.
For the fiscal year ended March 2025, the company reported mixed financial results. Net profit declined by 62.70% to ₹45.75 crore compared to ₹122.66 crore in the previous year ended March 2024. However, sales saw an increase of 18.66%, reaching ₹470.85 crore in the year ended March 2025 from ₹396.81 crore in the previous year. Quarterly performance for Q4 FY25 showed a net profit decline of 45.03% to ₹6.42 crore from ₹11.68 crore in Q4 FY24. Sales for the same quarter rose by 40.23% to ₹137.16 crore from ₹97.81 crore in Q4 FY24.
- Market Capitalization: ₹521.55 Cr (as of July 2025)
- P/E Ratio: 11.40
- 52-Week High: ₹405.75
- 52-Week Low: ₹234.01
- FY2024-25 Net Profit: ₹45.75 Cr (vs ₹122.66 Cr in FY2023-24)
- FY2024-25 Sales: ₹470.85 Cr (vs ₹396.81 Cr in FY2023-24)
- Q4 FY2024-25 Net Profit: ₹6.42 Cr (vs ₹11.68 Cr in Q4 FY2023-24)
- Q4 FY2024-25 Sales: ₹137.16 Cr (vs ₹97.81 Cr in Q4 FY2023-24)
- Recent Quarterly Disbursement (Q2 FY25): INR 643 Cr (surpassed guidance)
- Gross Non-Performing Assets (GNPA) H1 FY25: 4.80%
- Earnings Per Share (EPS) Q2 FY25: INR 9.71
The company demonstrated strong operational metrics in recent quarters. Muthoot Capital Services Ltd. (BOM:511766) achieved a record disbursement of INR 643 crore in Q2 FY25, surpassing their guidance of INR 600 crore. The company successfully reduced its Gross Non-Performing Assets (GNPA) to 4.80% in H1 FY25, ahead of the target to bring it below 6% by March 2025. Muthoot Capital Services Ltd. (BOM:511766) expanded its customer base by acquiring 75,854 new customers in Q2, bringing the total to 446,998. The company reported a significant increase in Earnings Per Share (EPS) to INR 9.71 in Q2 FY25 from INR 6.57 in Q1 FY25.
The company is strategically diversifying its portfolio beyond traditional 2-wheeler financing to include used cars and commercial vehicles, capitalizing on rising demand in semi-urban markets. Despite challenges in asset quality, management remains optimistic about future growth, targeting a 50% increase in Assets Under Management (AUM) and net interest income, supported by enhanced digital capabilities and a focus on cross-selling insurance products.
Management has set ambitious targets for the future. Ramandeep Gill, CFO, indicated that the company expects disbursement volumes to be significantly higher in the second half of FY25, with projections of INR 1,500 crore to INR 1,800 crore. This expectation is based on strong performance in October and anticipated seasonal demand.
While the company shows operational strength, certain challenges persist. The company has delivered a poor sales growth of -4.26% over the past five years and a low return on equity of 10.8% over the last 3 years. Despite recent positive financial performance, the company faces potential risks from external economic factors, such as stress in lower-income households, which could impact asset quality. The company's borrowing costs have increased, with the average MCLR rate rising from 8.51% to 9.21%, potentially affecting future profitability.
The Board of Muthoot Capital Services, at its meeting held on 14th May 2025, did not recommend any dividend for the year ended March 31, 2025. This reflects the company's focus on capital conservation and reinvestment for growth initiatives during a challenging operating environment.
