Muthoot Fincorp is launching its Tranche V secured Non-Convertible Debenture (NCD) issue that opens for subscription from September 8, 2026, to September 22, 2026. The issue offers interest rates up to 9.25% per annum, with tenures ranging from 24 months to 72 months and monthly, annual and cumulative interest payment options.
The base issue size is ₹350 crore, with an option to retain oversubscription of another ₹350 crore, taking the total issue size to ₹700 crore. The NCDs are proposed to be listed on BSE. The company has received AA/Stable rating from CRISIL and BWR AA+/Stable from Brickwork Ratings, which indicate a high degree of safety regarding timely servicing of financial obligations.
Should you invest in Muthoot Fincorp NCD September 2026? Let us look at the company, issue details, interest rates, ratings, financial performance, positives and risks before arriving at a conclusion.
About Muthoot Fincorp Limited
Muthoot Fincorp Limited is a non-deposit taking NBFC primarily engaged in gold loans. The company provides loans against pledged gold jewellery along with other lending and financial services.
The company has a large pan-India distribution network. As of June 30, 2026, it operated 3,845 branches and 326 processing centres across 25 states and union territories.
Its loan portfolio is predominantly secured. As of March 31, 2026, secured loan products accounted for 78.09% of consolidated AUM, of which gold loans formed the majority. The company reported consolidated GNPA of 1.61% and NNPA of 0.74% as of March 31, 2026.
Muthoot Fincorp NCD September 2026 – Issue Details
| Particular | Details |
|---|---|
| Issue Opens | September 8, 2026 |
| Issue Closes | September 22, 2026 |
| Base Issue Size | ₹350 Crores |
| Green Shoe Option | ₹350 Crores |
| Total Tranche Size | ₹700 Crores |
| Shelf Size | ₹3,000 Crores |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 per NCD |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Market Lot | 1 NCD |
| Listing | BSE |
| Nature | Secured, Redeemable, Non-Convertible Debentures |
| Lead Manager | Nuvama Wealth Management Ltd. |
| Debenture Trustee | Vardhman Trusteeship Pvt. Ltd. |
| Registrar | Integrated Registry Management Services Pvt. Ltd. |
The prospectus specifies a minimum application of ₹10,000, with further applications possible in multiples of one NCD. The NCDs are proposed to be listed on BSE within three working days of the Tranche V issue closure.
Muthoot Fincorp NCD Interest Rates
There are 12 series in this issue. Series I to IV offer monthly interest, Series V to VIII offer annual interest and Series IX to XII are cumulative options.
| Series | Tenure | Interest Payment | Coupon / Yield | Maturity Amount |
|---|---|---|---|---|
| I | 24 Months | Monthly | 8.56% / 8.90% | ₹1,000 |
| II | 36 Months | Monthly | 8.75% / 9.10% | ₹1,000 |
| III | 60 Months | Monthly | 8.84% / 9.20% | ₹1,000 |
| IV | 72 Months | Monthly | 8.88% / 9.24% | ₹1,000 |
| V | 24 Months | Annual | 8.90% / 8.89% | ₹1,000 |
| VI | 36 Months | Annual | 9.10% / 9.09% | ₹1,000 |
| VII | 60 Months | Annual | 9.20% / 9.19% | ₹1,000 |
| VIII | 72 Months | Annual | 9.25% / 9.24% | ₹1,000 |
| IX | 24 Months | Cumulative | 8.90% | ₹1,186.20 |
| X | 36 Months | Cumulative | 9.10% | ₹1,298.91 |
| XI | 60 Months | Cumulative | 9.20% | ₹1,553.17 |
| XII | 72 Months | Cumulative | 9.25% | ₹1,701.14 |
The highest coupon is 9.25% under Series VIII. The highest effective yield of 9.25% is available under Series XII, the 72-month cumulative option. The detailed coupon and maturity terms are specified in the Tranche V Prospectus.
Muthoot Fincorp NCD Credit Ratings
| Rating Agency | NCD Rating | Outlook | Safety Indication |
|---|---|---|---|
| CRISIL Ratings | AA | Stable | High degree of safety |
| Brickwork Ratings | AA+ | Stable | High degree of safety |
CRISIL has assigned Crisil AA/Stable, while Brickwork Ratings has assigned BWR AA+/Stable to the NCDs. Both ratings indicate a high degree of safety regarding timely servicing of financial obligations and very low credit risk according to the respective rating definitions.
Muthoot Fincorp Credit Rating Trend in the Last 3–5 Years
The rating trend is one of the positive aspects of this issue.
| Financial Year | CRISIL NCD Rating | Brickwork NCD Rating |
|---|---|---|
| FY2024 | AA-/Stable | AA-/Stable |
| FY2025 | AA-/Stable | AA-/Stable |
| FY2026 | AA-/Positive | AA/Stable |
| FY2027* | AA/Stable | AA+/Stable |
*Rating as indicated in the Tranche V Prospectus/current rating.
CRISIL’s NCD rating moved from AA-/Stable to AA-/Positive and subsequently to AA/Stable. Brickwork also upgraded its NCD rating from AA-/Stable to AA/Stable and then BWR AA+/Stable. This improving rating trajectory provides some comfort, although investors should remember that ratings can change in the future.
Objects of the Issue
The company intends to use the net proceeds mainly for its lending business and debt management.
At least 75% of the net proceeds will be used for onward lending, financing and repayment or prepayment of interest and principal of existing borrowings. Up to 25% can be used for general corporate purposes. The estimated net proceeds from the ₹700 crore issue are ₹690.52 crore after issue-related expenses.
This utilisation is broadly in line with the business model of an NBFC, where regular access to funding is important for growing the loan book.
Muthoot Fincorp Company Financials
Here are the company’s consolidated financial highlights.
| Particulars | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Total Assets | ₹67,668.68 Cr | ₹45,456.09 Cr | ₹38,703.57 Cr |
| Total Income | ₹11,227.80 Cr | ₹8,511.57 Cr | ₹6,554.31 Cr |
| Profit After Tax | ₹1,847.62 Cr | ₹607.99 Cr | ₹1,047.98 Cr |
| Net Worth | ₹8,218.32 Cr | ₹6,362.75 Cr | ₹5,811.02 Cr |
The company has shown strong improvement in FY2026. Total income increased by around 32%, while profit after tax increased sharply compared with FY2025. Net worth has also improved.
The company’s secured lending profile and large branch network are additional positives. However, investors should also remember that the company’s rapid balance-sheet growth means continued access to funding and maintenance of asset quality remain important.
Why to Consider Muthoot Fincorp NCD?
- Attractive returns: The NCD offers effective yields of up to 9.25% per annum.
- Strong credit ratings: The issue is rated AA/Stable by CRISIL and AA+/Stable by Brickwork.
- Secured NCDs: The issue has security backing as specified in the prospectus.
- Improving financial performance: FY2026 witnessed strong growth in income and profitability.
- Established gold-loan business: The company has a large branch network and a predominantly secured lending portfolio.
Why Not to Consider Muthoot Fincorp NCD?
- NCDs are not risk-free: A high credit rating does not guarantee repayment.
- NBFC risks: The company depends on borrowings and capital-market funding to support its lending operations.
- Gold loan concentration: A significant portion of the secured portfolio is linked to gold loans, making asset quality and collateral management important.
- Interest-rate risk: Changes in borrowing costs and lending rates can affect margins.
- Liquidity risk: Although the NCDs are proposed to be listed on BSE, investors should not assume that they can always sell them easily at the desired price.
The prospectus also highlights interest-rate risk and other regulatory, credit and operational risks. Investors should read the complete risk factors before applying.
How to Apply for Muthoot Fincorp NCD?
Investors can apply through the permitted application mechanisms and intermediaries mentioned in the Tranche V Prospectus. The minimum investment is ₹10,000, representing 10 NCDs of ₹1,000 each.
Investors should ensure that their PAN, demat account and bank or UPI details are entered correctly while applying. It is also important to select the appropriate NCD series based on the desired tenure and whether monthly, annual or cumulative interest is preferred.
Muthoot Fincorp NCD September 2026 – Should You Invest?
Muthoot Fincorp NCD September 2026 appears relatively attractive among NCD options because of its AA-level credit ratings, secured structure, established gold-loan business and improved FY2026 financial performance.
The 9.25% maximum effective yield is attractive for investors looking for fixed-income opportunities. However, investors should not consider the NCD equivalent to a bank fixed deposit or a risk-free investment. It remains subject to credit, liquidity, interest-rate, regulatory and asset-quality risks.
In our view, Muthoot Fincorp NCD September 2026 can be considered by investors who are comfortable with NBFC credit risk and are prepared to hold the NCD until maturity. Conservative investors looking for the highest level of credit safety may compare this issue with AAA-rated alternatives before taking a decision.
This is not investment advice. This article is only for educational and informational purposes. Investors should read the complete Tranche V Prospectus, understand the risks, consider their own financial position and consult a SEBI-registered investment adviser if required before investing.
FAQs on Muthoot Fincorp NCD September 2026
1. What is the Muthoot Fincorp NCD September 2026 issue size?
The base issue size is ₹350 crore and the company has an option to retain oversubscription of another ₹350 crore, taking the total Tranche V issue size to ₹700 crore.
2. What is the highest interest rate on Muthoot Fincorp NCD?
The highest coupon rate is 9.25% per annum under the 72-month annual-interest Series VIII. The 72-month cumulative Series XII offers an effective yield of 9.25%.
3. What is the minimum investment in Muthoot Fincorp NCD?
The minimum investment is ₹10,000, equivalent to 10 NCDs of ₹1,000 each.
4. What are the credit ratings of Muthoot Fincorp NCD?
CRISIL has assigned AA/Stable, while Brickwork Ratings has assigned BWR AA+/Stable.
5. Is Muthoot Fincorp NCD secured?
Yes. These are secured, redeemable and non-convertible debentures, with the security structure specified in the prospectus.
6. When does Muthoot Fincorp NCD September 2026 open and close?
The issue opens on September 8, 2026 and is scheduled to close on September 22, 2026, subject to the terms of the prospectus.
7. Is Muthoot Fincorp NCD risk-free?
No. Even though the NCDs have high credit ratings and are secured, investors are exposed to credit, liquidity, interest-rate and other risks.
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