New Delhi, Feb. 13 -- Gold loan company Muthoot Finance Ltd posted impressive earnings in the December quarter (Q3FY26), with gold loan assets under management (AUM) rising 50% year-on-year to around Rs.1.4 trillion, beating expectations. This was backed by strong demand for gold loans amid elevated gold prices. Also, unsecured and microfinance lending tightening has led borrowers to shift to gold-backed loans to meet their funding needs.

Demand for gold loans accelerated during the festive season and has remained strong through January and February, management said in the earnings call. Among other positives, asset quality improved due to auctions and legacy defaulters repaying their gold loans. Gross Stage 3 assets (loans overdue for m...