Feb 12 (Reuters) - Indian gold loan financier Muthoot Finance (MUTT.NS) , opens new tab reported a surge in third-quarter profit on Thursday, driven by strong loan demand amid record-high gold prices.

The company's profit nearly doubled to 26.56 billion rupees ($293.14 million) for the quarter ended December 31, compared with 13.63 billion rupees a year earlier.

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Gold prices touched multiple record highs in the October to December quarter. Higher prices benefit gold financiers as the value of pledged gold increases, enabling borrowers to secure larger loans against the same quantity of gold.

Additionally, tighter lending conditions in the unsecured loan segment have prompted more borrowers to turn to gold loans as an alternative source of funding.

Muthoot Finance's standalone loan assets under management rose 51% year-on-year to 1.48 trillion rupees at the end of the quarter.

Reflecting robust loan growth so far this fiscal year, the company in November raised its fiscal 2026 gold loan growth outlook to 30%–35%, up from 15% previously.

Interest income for the third quarter jumped about 63% to 71.14 billion rupees.

Asset quality also improved sequentially, with gross stage-three loans — or loans overdue by more than 90 days — declining to 1.58% of total loans at the end of December, from 2.25% three months earlier.

Shares of the company closed 3.4% higher ahead of the results.

($1 = 90.6050 Indian rupees)

https://www.reuters.com/world/india/indias-muthoot-finance-quarterly-profit-nearly-doubles-strong-loan-growth-2026-02-12/