Muthoot Finance, one of India’s top gold-loan non-banking financial companies (NBFCs), saw its share price jump sharply today after announcing outstanding first-quarter (Q1 FY26) results. Investors reacted positively to record profits, strong loan growth, and a confident outlook from the management.
Muthoot Finance Record-Breaking Profits in Q1 FY26
Muthoot Finance delivered a historic performance this quarter. Its standalone net profit rose nearly 90% year-on-year to ₹2,046 crore, the highest in the company’s history. On a consolidated basis, profit after tax (PAT) stood at ₹1,974 crore, up 65% compared to the same period last year, and 37% higher than the previous quarter.
Analysts credited this surge to a combination of higher loan demand, stable margins, and strong cost management. The company also benefited from favorable gold price movements, which supported growth in its core lending business.
Loan Portfolio Hits New Milestones
The consolidated loan assets under management (AUM) climbed to ₹1,33,938 crore, marking a 37% YoY increase. The standalone gold-loan AUM rose even faster—40% YoY, leading to an overall AUM jump of 42%.
In another record, Muthoot Finance reported the highest-ever gold held as collateral, reaching 209 tonnes. This milestone reflects the company’s growing dominance in the gold-loan segment and strong customer trust.
Muthoot Finance Strong Share Price Reaction on BSE and NSE
Following the results, Muthoot Finance shares surged 10–11.5%, touching the upper-circuit limits in early trading. On the BSE, the stock traded between ₹2,761 and ₹2,799, while the NSE recorded a high of ₹2,760.80.
According to TradingView, this marks the stock’s strongest single-day gain since June 2020 and a new all-time high. Market sentiment turned decisively bullish as investors rushed to take positions, expecting continued momentum in the coming quarters.
Broker Upgrades and Management’s Growth Outlook
Brokerages have responded positively to the results. Jefferies maintained its Buy rating and raised its target price to ₹2,950, citing strong loan growth, margin expansion, and improved asset quality. Nuvama also lifted its target to ₹2,993, pointing to “all-round outperformance.”
However, Motilal Oswal maintained a Neutral stance with a target of ₹2,790, noting that valuations are already high and could be sensitive to gold price changes.
Muthoot’s Managing Director, George Alexander Muthoot, expressed confidence in surpassing the company’s full-year loan growth guidance of 15%, possibly achieving above 20%. He attributed this optimism to healthy gold loan demand, rising gold prices, and supportive RBI lending guidelines.
Conclusion
Muthoot Finance’s latest results underline its strong fundamentals and leadership in the gold-loan market. While high valuations may prompt caution for some investors, the combination of robust growth, favorable market conditions, and positive broker sentiment suggests that the company could maintain its upward trajectory in the near term.
F.A.Q.
– Why did Muthoot Finance’s share price rise so sharply today?
The share price surged 10–11.5% after the company reported record Q1 FY26 results, with net profit up nearly 90% YoY and strong loan portfolio growth.
– What was Muthoot Finance’s Q1 FY26 net profit?
The standalone net profit reached ₹2,046 crore, while consolidated PAT stood at ₹1,974 crore, marking the highest-ever quarterly profit for the company.
– How much did Muthoot Finance’s loan assets grow?
Consolidated loan AUM rose to ₹1,33,938 crore, a 37% increase YoY, with gold-loan AUM up 40–42% YoY.
– What are analysts saying about Muthoot Finance’s stock?
Brokerages like Jefferies and Nuvama raised their target prices to ₹2,950 and ₹2,993 respectively, citing strong growth, while Motilal Oswal maintained a neutral stance with a target of ₹2,790.
– What is the company’s outlook for the rest of FY26?
Management expects to exceed its 15% full-year loan growth guidance, possibly achieving above 20%, driven by high gold loan demand and supportive RBI guidelines.
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