If you are looking for a relatively stable fixed-income investment in 2026, Muthoot Fincorp’s latest NCD issue might have already caught your attention. The company is back with yet another tranche just weeks after its previous issue in March 2026, and this time, interest rates have been slightly increased.
But the key question investors should ask is — should you invest in this NCD or avoid it?
Let’s go through a complete, practical review covering returns, risks, company fundamentals and whether this fits into your portfolio.
About Muthoot Fincorp Ltd.
Muthoot Fincorp Limited, incorporated in 1997, is a non-deposit taking NBFC and part of the well-known Muthoot Pappachan Group. The company primarily focuses on gold loans, catering to individuals and small businesses needing short-term liquidity.
As of December 2025, the company operates 3,757 branches across India with over 29,000 employees. Its gold loan portfolio covers more than 35 lakh loan accounts, making it one of the established players in this segment.
Apart from gold loans, the company also offers foreign exchange services, money transfer solutions, and has presence in wind energy and real estate segments.
Muthoot Fincorp NCD April 2026 – Issue Details
| Parameter | Details |
|---|---|
| Issue Opens | April 24, 2026 |
| Issue Closes | May 8, 2026 |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 per NCD |
| Base Issue Size | ₹200 Crore |
| Oversubscription | ₹400 Crore |
| Total Issue Size | ₹600 Crore |
| Minimum Investment | ₹10,000 |
| Listing | BSE |
| Allotment | First Come First Serve |
Interest Rates Offered
| Series | Tenor | Payment | Coupon | Yield |
|---|---|---|---|---|
| I | 24 Months | Monthly | 8.51% | 8.84% |
| II | 36 Months | Monthly | 8.65% | 9.00% |
| III | 60 Months | Monthly | 8.79% | 9.15% |
| IV | 72 Months | Monthly | 8.88% | 9.24% |
| V | 24 Months | Annual | 8.85% | 8.84% |
| VI | 36 Months | Annual | 9.00% | 8.99% |
| VII | 60 Months | Annual | 9.15% | 9.14% |
| VIII | 72 Months | Annual | 9.25% | 9.24% |
| IX-XII | Cumulative | 24–72 Months | NA | Up to 9.25% |
Compared to the previous March 2026 issue, interest rates have been marginally increased, making this tranche slightly more attractive for income-focused investors.
Credit Ratings
- CRISIL: AA- (Positive Outlook)
- Brickwork: AA (Stable Outlook)
An AA category rating indicates a high degree of safety and very low credit risk. The Positive outlook from CRISIL indicates a possibility of rating upgrade if performance improves further.
Credit Rating Trend (Last 3–5 Years)
Muthoot Fincorp has consistently maintained AA category ratings in recent years without any major downgrade. The shift in CRISIL outlook from Stable to Positive reflects improving confidence in the company’s asset quality and operations.
Objects of the Issue
The company plans to utilize funds for:
- Lending and financing business
- Repayment or prepayment of borrowings
- General corporate purposes
This is typical for NBFCs and indicates funds will support core business growth.
Company Financials
| Particulars (₹ Cr) | FY25 | FY24 | FY23 |
|---|---|---|---|
| Assets | 45,456 | 38,703 | 32,134 |
| Income | 8,511 | 6,554 | 5,151 |
| Profit After Tax | 608 | 1,048 | 646 |
| Net Worth | 6,363 | 5,811 | 4,257 |
The company has shown steady growth in assets and income. However, profit declined in FY25 compared to FY24, which investors should monitor closely.
Why to Invest in Muthoot Fincorp NCD April 2026
- Attractive interest rates up to 9.25%
- Secured NCDs offering better safety than unsecured debt
- Strong brand in gold loan segment
- Wide branch network and large customer base
- Multiple payout options (monthly, annual, cumulative)
Why Not to Invest
- Decline in profits in FY25
- NBFC sector risks (liquidity, regulation, gold price dependency)
- AA- rating slightly below top-tier AAA
- Liquidity in secondary market may be limited
- Interest fully taxable
How to Apply
You can apply through:
- Net banking (ASBA)
- Broker platforms
- BSE Direct / NSE goBID
Steps:
- Login to bank or broker
- Select NCD issue
- Choose series
- Enter quantity
- Approve UPI/ASBA mandate
Apply early as allotment is on a first-come-first-serve basis.
Should You Invest or Avoid?
Muthoot Fincorp NCD April 2026 offers a good balance of returns and safety for investors looking for fixed income options higher than bank FDs.
However, this is not a risk-free investment. The slight dip in profitability and NBFC-related risks should be considered before investing.
If you are a conservative investor, limit exposure to a small portion of your portfolio. Moderate risk investors can consider investing for diversification and better yields.
Overall verdict — can be considered for moderate allocation, but avoid overexposure.
FAQs
What is the minimum investment?
₹10,000
What is the maximum interest rate?
Up to 9.25% per annum
Is this safe?
AA rated — high safety but not risk-free
Can I sell before maturity?
Yes, via BSE listing
Is interest taxable?
Yes, as per your income slab
Who should invest?
Investors seeking higher fixed income with moderate risk.
Nice summary of the NCD issue.
It would be worth to mention how much interest rate on this NCD issue has been increased as compared with its March 2026 issue, rather than mentioning that “interest rate of this tranche is “marginally increased” than the previous March 2026 issue”.