Muthoot Finance share price rallied over 10 per cent to hit its upper circuit limit of ₹2,776 apiece in the early morning session on Thursday, after the company posted strong financial results for the quarter ended June 30, 2025, beating market estimates.
Muthoot Finance shares have largely remained positive in both the short-term and long-term. The NBFC stock delivered significant returns by surging over 23 per cent in six months and 53 per cent in one year.
The NBFC stock has given multibagger returns to its long-term investors by surging over 128.40 per cent in five years.
Muthoot Finance Q1 results 2025
The company announced its Q1FY26 results, reporting a 65 per cent year-on-year (YoY) surge in profit after tax (PAT) to ₹1,974 crore, compared to ₹1,196 crore in the same quarter last year.
On a sequential basis, PAT rose 37 per cent from ₹1,444 crore in Q4FY25.
Muthoot Finance achieved its highest-ever consolidated loan assets under management (AUM) of ₹1,33,938 crore as of June 30, 2025, reflecting a 37 per cent YoY increase of ₹35,891 crore over the ₹98,048 crore recorded in the corresponding period last year.
Quarter-on-quarter, consolidated loan AUM grew by 10 per cent, adding ₹11,757 crore. On a standalone basis, loan AUM reached ₹1,20,031 crore, up 42 per cent YoY, or ₹35,707 crore, while standalone PAT hit a record ₹2,046 crore, marking a 90 per cent jump from the previous year.
“As the Indian economy advances, demand for quick, reliable, and affordable credit is rising – and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead,” said George Jacob Muthoot, Chairman of Muthoot Finance, while commenting on the company’s Q1 performance.
Muthoot Finance Shares: Should you buy?
Nitin Jain, Sr. Research Analyst at Bonanza, said Muthoot Finance delivered a standout Q1FY26 performance, far exceeding analyst expectations.
“Overall, Muthoot Finance’s exceptional Q1 performance, expanded reach, and robust fundamentals place it on firm ground for continued growth. Investors remain attentive to regulatory changes and gold price trends, but the quarter marks clear evidence of the company’s resilience and expansion in India’s NBFC gold loan sector,” Jain said.
Domestic brokerage Motilal Oswal Financial Services said that Muthoot Finance stock now trades at 2.4x FY27E P/BV and, has benefited from the tailwinds of a sharp rise in gold prices and an improvement in gold loan demand due to the industry-wide rationing in unsecured credit.
“Muthoot Finance is indeed one of the best franchises for gold loans in the country, as is evident from its ability to deliver industry-leading gold loan growth and best-in-class profitability. However, we believe that its valuations are rich for the deep cyclicality in its gold loan growth, which will remain vulnerable to any volatility in gold prices,” it added.
MOSL reiterated its ‘Neutral’ rating on Muthoot Finance stock with an unchanged target price of ₹2,790.
However, Nuvama Institutional Equities, said Muthoot reported a strong Q1FY26 unlike peers, with an all-round beat.
“Strong AUM growth of 10% QoQ/42% YoY, an 88bp QoQ improvement in NIM, favourable opex and a significant decrease in credit cost are key positives of Q1FY26,” said the brokerage, while retaining a ‘Buy’ rating on the NBFC stock, with a target price of ₹2993.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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